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Morgans Hotel Group Co
Pebblebrook Hotel Trust
Morgans Hotel Group Co. (MHGC), which operates the Royalton and Mondrian boutique brands, put its 195- room Delano South Beach property in Miami Beach, Florida, on the market, according to the broker with the listing.
The New York-based hotelier hired Jones Lang LaSalle Hotels to market the property, Jeffrey Davis, a managing director at the brokerage, said in an e-mail today. Morgans in March completed a $10.8 million renovation of the property, including work on public areas and the makeover of its Bianca restaurant.
“Our focus is on building out our management business, and part of this strategy is to monetize our investments in real estate,” Morgans Chief Executive Officer Michael Gross said in an e-mail today. He declined to comment on the listing of Delano South Beach.
Morgans has been selling some properties and using the proceeds to expand its management operations. The company last year sold the Mondrian Los Angeles to Pebblebrook Hotel Trust (PEB) for $137 million. The hotel was developed by Ian Schrager, the Morgans founder who left the company in 2005.
The Delano South Beach listing was reported earlier today by Real Estate Alert. The property has an estimated value of $200 million, or about $1 million a room, the newsletter said, without citing a source for the figure.
Another luxury hotel in the city, the 1,504-room Fontainebleau Miami Beach, was appraised at $1.1 billion, or about $731,000 a room, as part of an April refinancing, according to data from New York-based research company Real Capital Analytics Inc.
Occupancies at hotels in Florida were the third-highest in the U.S., at 71 percent this year through April, behind only Hawaii and Washington, D.C., according to Smith Travel Research Inc. Luxury hotels, a category that includes Delano South Beach, had the highest occupancies, at 72 percent, among the seven segments tracked by the Hendersonville, Tennessee-based data company.
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