The SLS South Beach, a 140-room hotel that became a hip hangout after it opened three years ago, has sold.
Operator sbe, which owned the Philippe Starck-designed hotel with CIM Group, sold the property to Guernsey-based investment, advisory and management company GoldenPeaks Capital Real Estate. The move follows sbe’s sale of the SLS Beverly Hills for nearly $200 million earlier this year.
The purchase price of the South Beach property at 1701 Collins Ave. was not disclosed, but The Real Deal reported that it sold for $125 million.
“The sale of SLS South Beach represents the successful evolution of sbe,” Sam Nazarian, chairman and CEO of sbe, said in a statement.
The Los Angeles-based hospitality company is looking to focus on long-term management agreements rather than property ownership. The sale included an agreement that sbe will operate the SLS South Beach and its restaurants Bazaar and Katsuya as well as the on-site Hyde Beach lounge through 2030.
Nazarian and his family bought the site in 2004 for $24 million, according to property records. He told the Miami Herald three years ago that the cost of the project, including land, was between $80 and $85 million.
Several other sbe projects are in the works and scheduled to open in the next two years in South Florida, including SLS Hotel & Residences Brickell; SLS LUX Hotel & Residences Brickell; Hyde Hotel & Residences Hollywood and Hyde Hotel & Residences Midtown Miami.