When you think of great combinations in Miami Beach, you think of classics, both new and old, like perfect weather and perfect bodies, the Fontainebleau Hotel and the Rat Pack, Ocean Drive and Art Deco, pasty unprotected skin and blistering sunburns, café and Cubano, the Miami Heat and world championships, world class boating and low class banana hammocks, Joe’s and stone crabs and 70 degree weather (our freezing winter) and fur coats.

It’s time to add another combination to the mix… a sweltering luxury hotel market and the Collins Avenue corridor of Miami Beach.

On the heels of the 2012 openings of the Perry South Beach and SLS Hotel, along with the soon-to-be opened James Royal Palm, and the recent listing of the iconic Delano Hotel on the market (discussed in a previous post), all of which are located within a few blocks of each other on Collins Avenue, two recent developments are sure to increase the heat in this already scorching luxury hotel market.

Recent Developments: Raleigh Hotel & South Beach Block

First, miami.com and the New York Post have recently reported that another South Beach Art Deco icon, the Raleigh Hotel, has been sold to David Edelstein, the developer of W South Beach and SBE Hotel Group, the owners of the recently opened SLS Hotel. Both the W South Beach and SLS Hotel are practically next door neighbors to the Raleigh Hotel so it will be interesting to see how this deal progresses. The Raleigh Hotel sold in 2009 to the current owner for a speculated $31M and the current sale price is estimated to be between $55M and $60M.

Second, an entire South Beach block located near Collins Avenue and 20th Street, which currently contains dilapidated and burned out shells of seven historic apartment buildings, was recently purchased by the Chetrit Group, with plans to develop a complex of boutique hotels on the site.

According to the Miami Herald, the new developer “wants to restore, partially demolish and add onto the properties in order to construct a roughly 300-room complex that would rejuvenate a block of buildings tucked between the Miami Beach Convention Center and the Miami City Ballet.”

The seven buildings purchased by the Chetrit Group were designed by some of Miami Beach’s most prominent architects, including L. Murray Dixon, who designed the Raleigh and Tides Hotels, and Albert Anis, the architect responsible for the always lively Clevelander hotel on Ocean Drive.

We hope that the new developers can retain much of the Art Deco, Post War Modern and Mediterranean Revival styles of the original buildings, while bringing a modern boutique hotel to the ever-changing scene in Miami Beach.

For more on the sizzling South Florida hotel market, please see the following articles in which Suzanne Amaducci-Adams is featured:

Miami hotel market sizzles with activity, HotelNewsNow.com

Suzanne Amaducci-Adams Unravels Miami Hotel Market, GlobeSt.com