Pebb Capital and LeaseFlorida sold a historic Miami Beach hotel for $43.9 million, the sellers announced.
The Hampton Inn by Hilton at The Continental in Miami Beach, a Miami Modern-style property built in 1948, features 100 rooms and a pool. Located at 4000 Collins Avenue, just one block from the beach, the six-story hotel sits within a strip known for housing other hotels, such as the iconic Fontainebleau resort, in the Mid-Beach neighborhood.
The joint venture spent $25 million renovating the Hilton hotel after buying it for an undisclosed amount in 2016, said a spokesperson for Pebb. While property records did not record a sale, they show Pebb nabbing loans, totaling $44 million, from Acore Capital Mortgage in 2016.
The recent sale — to an undisclosed buyer — comes a little over a month after Pebb sold the 8,896-square-foot retail portion of the property, entirely leased to CVS Pharmacy for over 25 years, to Cove Capital Investments for $17.73 million. (Pebb’s representative declined to divulge the buyer’s identity.)
It also comes just a month after a hotel across the street, the 339-room Confidante Miami Beach, sold for $232 million.
These trades are examples of investors’ appetite for hotel properties as the hospitality industry bounces back from the pandemic.
Miami’s revenue per available room, a metric used to calculate a hotel’s performance, grew by 22.8 percent between 2019 and 2022 — the most of any U.S. market, according to JLL.
Just this week, the dual-branded property AC Hotel by Marriott & Element Miami Brickell traded for $89 million.
Historic Miami Beach hotels, similar to the Hilton property, sometimes become controversial.
Last month, Related Companies’ Stephen Ross bought the iconic Deauville Beach Resort, also a MiMo-style building, enlisting star architect Frank Gehry to redevelop the property.
The hotel’s previous owners drew ire from preservationists, who accused them of intentionally letting the property fall into disrepair after a 2017 fire, in hopes of tearing it down and building something new.
Julia Echikson can be reached at email@example.com.