Judge approves sale of Canyon Ranch Miami to Z Capital

A judge has approved private-equity fund manager Z Capital Partners' $21.6-million purchase of the Canyon Ranch Hotel & Spa in Miami Beach, which Lehman Brothers put into bankruptcy protection earlier this year, The Wall Street Journal reports.

Judge Shelley C. Chapman of U.S. Bankruptcy Court in Manhattan last week approved the sale, a deal that reportedly did not sit well with a group of Canyon Ranch condo owners who wanted to buy the property and had fought it in court.

However, Z Capital and another group of Canyon Ranch condo owners that already supported the deal reached a compromise with the disgruntled group that satisfied their objections, The Journal further reports.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

“We are extremely pleased to have been approved by the bankruptcy court in the acquisition of the Carillon Hotel & Spa in Miami Beach,” James Zenni, president and chief executive of Z Capital, said in a Tuesday news release, referring to an alternate name for the Canyon Ranch property.

A deal to sell the 580-room property fell through earlier this year after the condo owners tied it up in court. Z Capital is buying the hotel lot, the retail lot and unsold condominium units. Debts amount to about $17 million, not including about $10 million in disputed litigation claims, court papers have said.

Suggested Articles

The sales included that of the 503-room Hilton São Paulo Morumbi, the real estate investment trust’s last international property.

After disbursing 50 years' worth of hotel assets, the company is focused on worldwide growth in the luxury sector.

Co-living brand The Collective has agreed a new £140m financing package from Deutsche Bank and GCP Asset Backed Income Fund.