I have thought for a long time that Miami could use a higher-end Hyatt option.
The Unbound Collection is a brand for independent upscale hotels. The branding of this hotel will change in the next couple of years.
The hotel has been sold for $232 million, or $684,000 per key. The purchase price is a 17.3x multiple on projected earnings and a 5% rate on projected net operating income.
The hotel is expected to undergo a full transformation after the sale, and will be renamed the Andaz Miami Beach. $60 million is a pretty significant investment by the new owners of the hotel. It is expected that the renovation will be completed in the year 2024.
I have never stayed at The Confidante Miami Beach. The hotel is a bit past its prime, but people like it for its beachfront location. The Unbound Collection isn't supposed to be a hotel by any stretch of the imagination.
It is great to see that money will be put into this hotel to make it feel more luxurious. This will be Hyatt's most premium property in the Miami area, so I'm sure many World of Hyatt members will appreciate this.
Miami has been a hot hotel market for a long time. The Andaz will be able to charge higher rates because room rates have been through the roof.
The Andaz Miami Beach will be renovated and turned into a hotel after the Confidante Miami Beach was sold. Hyatt is getting a higher end property in Miami since it is an area where the brand lags and Marriott has lots of great options in Miami.
What do you think about the Andaz Miami Beach?
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