Service Properties Trust (SVC) has acquired the 250-room Nautilus in Miami Beach for $165.4 million, or approximately $661,600 per key.
The Nautilus is a lifestyle oceanfront hotel located in Miami’s South Beach neighborhood with 250 guestrooms, including 55 suites, four food and beverage outlets, an outdoor pool, spa, a fitness center and 17,500 sq. ft. of flexible outdoor and indoor event space. The hotel will initially be branded as the Nautilus Sonesta Miami Beach, and undergo a $25-million repositioning commencing in the summer of 2024, with plans to reopen in early 2025 under Sonesta’s lifestyle brand, The James.
“The acquisition of the Nautilus Hotel provides SVC with an important entry into the South Beach market and adds another high-end destination resort hotel to our portfolio,” said Todd Hargreaves, president/chief investment officer, SVC. “This is an irreplaceable beachfront parcel located in the heart of Miami Beach in an area with numerous high-end luxury and upper-upscale hotels. We are confident that the rebranding as a Sonesta and subsequent renovation will result in an attractive return on SVC’s investment.”
John Murray, president/CEO, Sonesta, added, “Over the past few years, we have focused on expanding Sonesta’s presence with an upscale offering in Miami, which is a critical market for the brand and one of the world’s premier vacation destinations. With the Nautilus Sonesta Miami Beach, we are confident that we will provide travelers with a sophisticated and authentic Miami experience.”
“The addition of Nautilus Sonesta Miami Beach further strengthens our position as a leading hospitality operator in this gateway market,” said Vera Manoukian, EVP/COO, Sonesta. “This hotel makes a wonderful destination to earn and redeem Sonesta Travel Pass points.”
“The opening of this property reaffirms our commitment to growing Sonesta’s lifestyle and luxury business by expanding our brands to key locations,” continued Elizabeth Harlow, chief brand officer, Sonesta.
SOURCE: Hotel Business