Pebblebrook Hotel Trust acquired the Viceroy Miami hotel for $36.5 million. The 148-room, luxury, full-service hotel is located in downtown Miami, Florida, in the ICON Brickell complex. The property will continue to be managed by Viceroy Hotel Group.
“We are pleased to be acquiring the Viceroy Miami at an extremely attractive price and furthering the geographic diversification of our growing portfolio,” said Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust. “Miami has historically performed very well in recovery cycles and the distinctive quality and location of the Viceroy Miami creates a very strong investment opportunity for our company. The hotel benefits from its location within the ICON Brickell complex along Brickell Avenue, a high-end business district in Miami. This cosmopolitan area has redefined itself in recent years as the city’s work-play epicenter, with upscale residences, shops, restaurants, nightlife and entertainment, successfully creating a unique mix of corporate and leisure demand.”
The Miami metropolitan market has experienced unprecedented growth over the past two decades, benefitting from a healthy tourism industry that now attracts 38 million visitors annually from around the world, as well as the city’s strong connection to South America’s rapidly expanding business centers.
The Viceroy Miami is located along Brickell Avenue in Miami, Florida, in one of the three ICON Brickell towers overlooking the Miami skyline, Miami River and Biscayne Bay. The ICON Brickell is a ten-acre urban development that consists of three skyscraping towers, of which the North and South Towers include condominium residences, and the Viceroy Tower, which includes both condominiums and the Viceroy Miami hotel. Brickell Avenue is considered by many to be the “Wall Street of the South” and contains a large concentration of international financial institutions, along with some of the area’s most vibrant and prominent restaurants, nightlife and residences.
Recently constructed in 2009, the Viceroy Miami is a luxury hotel that features 148 guest rooms designed by Kelly Wearstler. The hotel includes a unique array of amenities, including oversized guest rooms, each with its own convenience kitchen, flat screen HDTVs and Sferra custom linens and robes, in addition to the three food and beverage outlets, full-service spa and distinctive meeting and event space.
The hotel’s three meal a day restaurant, Eos, offers a Mediterranean-inspired menu featuring bold flavors rooted in health and lightness and a decor combining classical lines with exotic finishes that create a “Miami-style” elegance. Cafe Icon, located in the south ICON Brickell tower, is a coffee and sandwich shop that provides service for hotel and residential guests. Club 50, sitting atop the 50-story Viceroy Tower, offers spectacular surrounding views of Miami and Biscayne Bay, as well as an Asian-inspired private pool and lounge area that provides a lighter-fare menu, innovative cocktails and quintessential Miami nightlife.
Hotel guests have access to the Spa at Viceroy Miami, which is located in the south ICON Brickell Tower. The Spa encompasses 28,000 square feet and includes a 5,000-square foot water lounge, 2,500-square foot state-of-the-art gym, juice bar, Redwood saunas and 10 spa treatment rooms. The hotel also offers over 4,000 square feet of meeting space spread across three rooms that provide views of the Miami River, Biscayne Bay and downtown Miami. In addition to the spa, guests also have access to the 15th floor two-acre outdoor park terrace that features a wading pool, thermal hot tub and Olympic-length lap and recreational infinity pool overlooking Biscayne Bay.
In 2010, during the early stage of ramp up from its prior year opening, the Viceroy Miami operated at 68 percent occupancy, with an ADR of $183. During the next 12 months, the company currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $2.4 to $2.7 million and net operating income after capital reserves of $1.7 to $2.0 million.
The hotel will continue to be managed by the Viceroy Hotel Group, which has managed the hotel since its opening in 2009.
“We are delighted to be working with Pebblebrook Hotel Trust at the Viceroy Miami,” said Viceroy Hotel Group’s Brad Korzen. “The hotel continues to show excellent growth potential and we look forward to future success at the Viceroy Miami working closely with Pebblebrook Hotel Trust. This is the second property that Pebblebrook has acquired from our portfolio and we look forward to a continued great partnership.”
“We’re excited to further expand our relationship with the Viceroy Hotel Group through our acquisition of the Viceroy Miami. We’re confident that their operational expertise will continue to make the Viceroy Miami a sought after destination in the Miami marketplace,” continued Mr. Bortz.
The Company expects to incur approximately $0.5 million of costs related to the acquisition of this hotel that will be expensed as incurred.
The Viceroy Miami marks the thirteenth acquisition for the Pebblebrook, comprising over $1.0 billion of invested capital since completing its initial public offering in December 2009. Pebblebrook has previously announced a signed agreement to purchase one other hotel:
$89.5 million for the W Boston in Boston, Massachusetts.