Dive Brief:
- Park Hotels & Resorts has reopened the Royal Palm South Beach Miami, a Tribute Portfolio Resort, after the oceanfront property underwent a more than $100 million renovation, the company announced Wednesday.
- Located on Collins Avenue in Miami Beach’s historic Art Deco district, the Royal Palm “blends its celebrated heritage with a completely reimagined guest experience,” through upgrades to its guest rooms, public spaces and amenities, per the release.
- The reopening furthers Park’s investment strategy and comes amid a flurry of hotel activity in Miami Beach, including the forthcoming rebranding of the W South Beach.
Dive Insight:
The Royal Palm reopens with 404 fully renovated guest rooms and suites, including 11 new guest rooms, across its East and West towers and Lanai bungalow. The property also features a redesigned lobby and arrival experience; four new food and beverage concepts; an enhanced pool and beachfront amenities; and roughly 20,000 square feet of modernized and expanded meetings and events space.
The improvements are expected to nearly double the hotel’s EBITDA upon stabilization, according to Park Chairman and CEO Thomas Baltimore Jr.
“Since 2018, we have invested over $430 million in ROI-driven projects across our core portfolio, consistently generating returns in excess of 15% to 20% once projects stabilize and driving significant EBITDA growth,” Baltimore said. “Royal Palm is another compelling example of how we are unlocking embedded value while enhancing the quality and long-term earnings growth of our portfolio.”
Park has recently completed redevelopment projects at the Bonnet Creek complex in Orlando, Florida; the Hilton Santa Barbara Beachfront Resort in California; and Casa Marina and The Reach in Key West, Florida, per the release. The company has also updated the guest rooms at the Hilton Hawaiian Village, Hilton Waikoloa Village and the Hilton New Orleans Riverside.
“We remain laser-focused on enhancing the quality of our iconic portfolio through the disposition of our remaining Non-Core hotels,” Baltimore said in an April earnings report.
In December, Park announced that it had sold, or entered into agreements or letters of intent to sell, five non-core hotels, with gross proceeds valued at about $198 million.
Park’s reopening on the Royal Palm comes as “Miami remains one of the strongest lodging markets in the country,” Baltimore said.
Other recent happenings in the market include the June reopening of the iconic Delano Miami Beach hotel. Earlier this month, W South Beach owner Reuben Brothers announced that the Marriott-branded hotel would convert under Hilton’s Waldorf Astoria flag following a “meticulous renovation.”
