Service Properties Trust (Nasdaq: SVC) announced today that it has acquired the 250-room Nautilus Hotel located at 1825 Collins Avenue, Miami Beach, FL for $165.4 million, or approximately $661,600 per key.
The Nautilus is a lifestyle oceanfront hotel located in Miami’s South Beach neighborhood with 250 guestrooms, including 55 suites, four food and beverage outlets, outdoor pool, spa, fitness center and 17,500 SF of flexible outdoor and indoor event space. The hotel will initially be branded as the Nautilus Sonesta Miami Beach, and undergo a $25 million repositioning commencing in the Summer of 2024 with plans to reopen in early 2025 under Sonesta’s lifestyle brand, The James.
Todd Hargreaves, President and Chief Investment Officer of SVC, made the following statement regarding today’s announcement:
“The acquisition of the Nautilus Hotel provides SVC with an important entry into the South Beach market and adds another high-end destination resort hotel to our portfolio. This is an irreplaceable beachfront parcel located in the heart of Miami Beach in an area with numerous high-end luxury and upper upscale hotels. We are confident that the rebranding as a Sonesta and subsequent renovation will result in an attractive return on SVC’s investment.”
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of March 31, 2023, SVC owned 220 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of March 31, 2023, SVC also owned 765 retail service-focused net lease properties totaling over 13.3 million square feet throughout United States.