During the first week of December, Hotel Management wondered aloud how long it would be before The Setai in Miami would be picked up by a new owner. The answer was not too long, but not by the expected buyer.
At the time, the Turkish-based Suzer Group was looking into the hotel for approximately $88 million, but as of last week the hotel was acquired by the founders of Jordache Enterprises for about $90 million, according to The Wall Street Journal. Nakash Holdings is the buyer of the property, which has 85 rooms and 35 condo units. At nearly $750,000 per room, this is one of the highest per-room sales in the history of Miami Beach.
“The Setai is really the crown jewel of Miami Beach,” Jonathan Bennett, managing director of Nakash Holdings, told the Miami Herald. “It is the epitome of luxury in that city. We’ve enjoyed spending time there, and when it came up for sale, we knew it was something that would be a great fit for us. It’s special and unique, and there’s nothing else on the Beach that can compete with it.”
The Setai is just one in a string of acqisitions from Jordache, which also bought the Versace Mansion last year for $41.5 million, and five other hotels in the area, including the Breakwater Hotel and the Hotel Victor.
Miami hotels are looking at a profitable holiday season, as room rates are skyrocketing for New Year's Eve. The South Florida Business Journal reported that a survey from MiamiHotels.org found hotels in the Miami and Miami Beach areas raised their rates by up to 491 percent for New Year's Eve bookings. What's more, travelers seem willing to pay the price, with less than 10 percent of hotels in the region still having rooms available.
On average, Miami Beach hotels increased their rates by 249 percent due to limited availability.