The James Royal Palm, which reopened in late 2012 after a major renovation, is being sold for $278 million. The hotel last sold in 2011, when KSL Capital Partners bought it for $130 million and invested $42 million in renovations.
Annapolis-based Chesapeake Lodging Trust said last week that it had entered into an agreement to acquire the 393-room hotel at 1545 Collins Ave. in Miami Beach from KSL Capital Partners. It was not clear Tuesday when that transaction would close.
“We are very excited to announce our entrance into the highly desirable Miami South Beach market with the pending acquisition of The James Royal Palm,” James L. Francis, president and CEO of Chesapeake Lodging Trust, in a statement. “The Royal Palm, which recently underwent a comprehensive renovation, has an irreplaceable oceanfront location at the intersection of Collins Avenue and 15th Street.”
In the statement, he said the lodging real estate investment trust would bring in HEI Hotels & Resorts as the new hotel manager and Starwood Hotels & Resorts as the franchisor. Still unknown is which Starwood brand the hotel will take on.
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A spokeswoman for The James brand said in an email that the hotel operator, Denihan Hospitality Group, “remains deeply committed” to the brand, which has locations in Chicago and New York and a property opening in West Hollywood in 2016.
“We are proud of the property’s robust growth and that it established itself in the market so quickly, creating a strong market value that allowed our partner in the hotel to secure an attractive sale offer,” the statement said.