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Quadrum Global’s Nautilus by Arlo, a 250-room hotel in Miami Beach built in 1951, traded hands for $165.4 million, according to the brokers.
Service Properties Trust purchased the Art Deco-style hotel at 1825 Collins Avenue, which was designed by quintessential Miami architect Morris Lapidus and restored in 2015, and will hand over operations to Sonesta International Hotels Corporation.
Service Properties Trust acquired the hotel at $661,600 per room and will operate the building as Nautilus Sonesta Miami Beach while it undergoes a $25 million repositioning that’s expected to wrap up in early 2025, at which time it will be renamed under Sonesta’s brand, The James, according to the buyers.
The hotel acquisition provides Service Properties Trust “with an important entry into the South Beach market and adds another high-end destination resort hotel to our portfolio,” Todd Hargreaves, chief investment officer for Service Properties Trust, said in a statement.
The seller acquired the property, known simply as The Nautilus Hotel, for about $61 million, in 2011, and hired Arlo Hotels to manage the site in 2019.
“The buyer recognized the irreplaceable value of the property as a historical oceanfront hotel in the core of Miami Beach’s high-end culinary and lodging scene,” CBRE’s Paul Weimer, who represented the seller alongside Christian Charre, and Jennifer Jin, said in a statement. “It is extremely rare to find an oceanfront hotel of this stature being offered fully unencumbered by brand and management.”
Scott Ellman, Alyssa Kidd and Peter Flexner of Eastdil Secured also represented Quadrum Global in the deal.
Arlo Hotels declined to comment.
Lapidus, born in Ukraine in 1902, made a name for himself on the Miami scene during the height of the city’s Art Deco wave, and is best known for the Fontainebleau Miami Beach at 4441 Collins Avenue.
Mark Hallum can be reached at mhallum@commercialobserver.com.
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