April 13, 2011
KSL Capital Partners Announces Acquisition Of The Royal Palm Hotel in South Beach
DENVER, Colo. - April 13, 2011 - KSL Capital Partners, LLC announced today that it has acquired The Royal Palm Hotel in Miami’s historic South Beach district for $130 million at closing, or roughly $318,000 per key, from an affiliate of Sunstone Hotel Investors, Inc. (NYSE: SHO). Opened in 1939, in 2002 the hotel underwent an extensive renovation that added two towers and increased the size of the hotel to 409 rooms. KSL intends to completely renovate and reposition the hotel under The James brand as The James Royal Palm.
The hotel is managed by Denihan Hospitality Group who will remain in place following the acquisition and who will manage the planned renovation.
"South Beach is one of the strongest and most desirable hotel locations in the United States. The very successful James brand is a natural addition to South Beach. Following the renovation, The James Royal Palm will be the premier luxury boutique hotel in South Beach," said Bernard Siegel, a Principal of KSL.
The renovation plan includes improvements to all of the guestrooms, guest baths and public areas of the hotel, including new restaurants, a spa, outdoor spaces, and furnishings to bring the hotel up to the exacting standards of The James brand. The renovation is scheduled to be completed in late 2012.
Mr. Siegel added, "South Beach is not simply a vacation spot, but a historic and vibrant community. The Royal Palm was originally constructed at the height of the art deco movement in Miami. The planned renovation will preserve the style and history of the hotel, while improving virtually all aspects of the Royal Palm with a new level of luxury and sophistication. We are very pleased to be part of this exciting project and a part of South Beach."
The Royal Palm is located on nearly two acres in a prime beachfront location between 15th and 16th Streets on Collins Avenue in Miami Beach.
About KSL Capital Partners
KSL Capital Partners is a private equity firm specializing in travel and leisure enterprises in five primary sectors: hospitality, recreation, clubs, real estate and travel services. KSL Capital Partners has offices in Denver, Colorado and New York. For more information, please visit www.kslcapital.com.
KSL s current and prior investments include some of the premier properties in travel and leisure, including Grand Wailea Resort Hotel & Spa, Arizona Biltmore Resort & Spa, La Costa Resort and Spa, Hotel del Coronado, the Claremont Hotel Club & Spa, the San Francisco Bay Club and its sister clubs, as well as ClubCorp, the world s largest owner of private golf and business clubs. KSL also owns other premier recreation businesses, including Squaw Valley USA, one of the leading ski resorts in North America, Western Athletic Clubs, the owner and operator of luxury fitness clubs on the West Coast, and Orion Expedition Cruises, a luxury expedition cruise operator based in Sydney, Australia. In addition, KSL’s predecessor owned and operated the Doral Golf Hotel & Spa from 1992 until 2004.
About the James
The James Chicago debuted in April 2006 as the stylish alternative for discerning business and leisure travelers alike. Featuring David Burke’s Primehouse, JBar lounge, expansive meeting and event spaces, exclusive James Club guest lounge, spacious, modern and comfortable guest rooms as well as a seasonally rotated exhibition of artwork chosen in conjunction with Monique Meloche Gallery. The James New York debuted in September 2010 anchoring the southwest corner of Grand and Thompson Streets in SoHo. In continuation of the brand’s support for the arts, The James New York features an exclusive, proprietary collection by emerging artists upon each of their 14 guestroom floors. Unique event spaces and impeccable attention to details are found throughout. The hotel boasts culinary destination David Burke Kitchen, a rooftop pool deck, rooftop bar and lounge, Jimmy, an Urban Garden, Penthouse Loft designed by Piet Boon; and a captivating Sky Lobby, accessible by a signature glass elevator and outfitted with furnishings by Cristina Grajales. The latest addition to The James brand is The James Royal Palm, located in South Beach, Miami, opening in late 2012. www.jameshotels.com
About Denihan Hospitality Group
New York based Denihan Hospitality Group, one of the nation’s fastest growing owner/operators of stylish boutique hotels, draws upon a 50-year family legacy of providing guests with highly individualized service. Denihan’s 13-property portfolio includes upper upscale and luxury brands Affinia Hotels and The James, as well as luxury independent properties The Surrey and The Benjamin, and other independent affiliates. A full-service management and development company, Denihan’s properties are located in some of the most sought after U.S. locations, including New York, Chicago, Washington, D.C., and Miami. For reservations or further information, visit www.denihan.com.