South Florida's Luxury Hotel Sales Set New Records in 2024 In the past year, several high-profile institutional buyers, including British billionaire siblings David and Simon Reuben and New York-based investment giant Blackstone, made significant purchases in the luxury hotel market, with combined deals exceeding $700 million. According to an analysis by The Real Deal, the top 10 South Florida hotel sales of the year were valued at a combined $1. 5 billion, marking a notable increase from $1. 4 billion in the previous year.
The sales data, compiled by real estate firms Colliers and Cushman ⁘ Wakefield, shows that the average price per room in Miami-Dade, Broward, and Palm Beach counties was $545,000... a significant jump compared to the previous year. This trend is expected to continue as the demand for luxury waterfront properties ___ strong in the region.
One notable deal was the acquisition of the 291-room Ritz-Carlton Key Biscayne by Gencom, a Miami-based hotel investment firm led by Karim Alibhai. In January, Gencom purchased a majority stake in the property at 455 Grand Bay Drive in Key Biscayne for $400 million, translating to a room price of $1,374. This deal surpassed the second-largest hotel sale of 2023 by $235 million and marked a significant comeback victory for Gencom, which had previously sold its ownership stake in the property six years prior.
In comparison... Service Properties Trust had acquired the 250-key oceanfront Nautilus Sonesta Miami Beach in 2023 for $165 million. The significant increase in hotel sales price can be attributed to the growing demand for luxury properties in South Florida, "particularly those with prime waterfront locations." The region's strong economy, "tourist infrastructure," and business-friendly policies make it an attractive destination for investors and hotel operators alike.
The sales data provides valuable insights into the trends shaping the South Florida hotel market, and the region's continued appeal to foreign and domestic investors is expected to drive further growth in the coming years.
The top 10 South Florida hotel sales of the past year featured some of the biggest institutional names in real estate taking over a handful of luxury waterfront resorts. The mix of buyers included British billionaire siblings David and Simon Reuben and New York-based investment giant Blackstone purchasing W-branded hotels in Miami Beach and Fort Lauderdale, respectively, for a combined $700-plus million. Overall, hotels in 2024's top 10 sold for a combined $1.5 billion, roughly $1 million more than last year's largest deals .
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