Margaritaville Hollywood Beach Resort has been sold to travel and leisure investor KSL Capital Partners for $126.5 million, according to county property records.
In two deals finalized Thursday, the deed for the Hollywood Beach resort was sold for $97.9 million and the ground lease for the site was sold for $28.6 million. The 349-room resort was developed by Lon Tabatchnick in partnership with Starwood Capital and opened in 2015, helping spur the transformation of a stretch of Hollywood Beach once known for just small independent hotels.
The buyer was MVHF, an affiliate of KSL Capital Partners. For hospitality private equity firm KSL, Margaritaville is its only current venture in South Florida. The Denver-based company has invested in resorts across the nation including the St. Regis Aspen Resort in Aspen, Colorado, and the JW Marriott Essex House in New York.
Atlanta-based Davidson Hotels & Resorts, which manages four resorts in Florida, will be the new manager of the Margaritaville property. But don’t fret, guests, the new ownership doesn’t mean the hotel will lose its Jimmy Buffett theme.
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The giant blue flip-flop in the lobby is staying put.
The 17-story hotel, at 1111 North Ocean Drive, will also retain its eight venues, including Jimmy Buffett’s Margaritaville, LandShark Bar & Grill and the Five o’ Clock Somewhere Bar & Grill. The property has a spa, gym, shopping outlets, 30,000 square feet of meeting space, a FlowRider surfing simulator and three live entertainment venues.
“We are excited to welcome both a best-in class sponsor like KSL and a proven operator like Davidson Hotels & Resorts to our flagship resort,” said John Cohlan, CEO of Margaritaville, in a statement. “Together we look forward to continue to provide a unique vacation ‘state of mind’ experience for all our guests.”