Edition Hotel Miami Beach Sold For $780K Per Room To Abu Dhabi Investment Fund

The Abu Dhabi Investment Authority has closed on the purchase of Miami Beach’s recently opened 294-room EDITION hotel for $230 million.

The hotel was developer by Marriott and Ian Schrager.

At the price, the hotel is valued at over $780,000 per key.

At a conference yesterday, Schrager said that the hotel is getting double the expected revenue on an annual basis, and that food and beverage sales at the hotel accounted for 40 to 45% of revenue.

ADIA had the property in contract even before the hotel opened, so the sales price could have been even higher.

Schrager also said that he is scouting the Biscayne corridor, downtown Miami, and beachfront sites for his Public Hotel brand.

 

Marriott International Inc.
MARRIOTT SELLS MIAMI BEACH EDITION, RETAINS LONG-TERM MANAGEMENT AGREEMENT

The Next Generation Urban Resort Opened in November
BETHESDA, Md., Feb. 19, 2015 / — Marriott International, Inc. (NASDAQ: MAR) today announced it has sold The Miami Beach EDITION hotel for cash proceeds of $230 million. Today’s sale is the second in a series of three anticipated sales of Marriott-owned EDITION hotels to companies ultimately owned by the Abu Dhabi Investment Authority (ADIA). The agreement with ADIA for the sale of these three EDITION hotels was announced when the first, The London EDITION, was sold to ADIA in January 2014. Marriott expects to sell the third, The New York EDITION (5 Madison Avenue) to ADIA in the first quarter of 2015.

“The Miami Beach EDITION is a defining example of this extraordinary brand,” said Arne Sorenson, president and chief executive officer of Marriott International. “We look forward to welcoming and delighting many thousands of guests at this spectacular hotel in a world-renowned destination…one that is certain to be known as the next generation urban resort.”

The Miami Beach EDITION is located in “heart of Miami Beach” between South Beach and North Beach-on a three and a half-acre private enclave stretching from Collins Avenue to the ocean shoreline. The property is an elegantly designed complex of structures, spaces, and settings that together offer a new kind of resort environment. With The Miami Beach EDITION, every aspect of the traditional beach hotel has been re-imagined for the needs and desires of a new segment of non-traditional luxury lifestyle consumer, and every thought given to enhancing a guest’s stay: for vacation, for relaxation-and for work.

 

(photo:philip pessar/flickr)