Related Cos and Fontainebleau Join Forces to Build Luxury Hotel at Miami Airport
By Julia Echikson May 9, 2023 2:10 pm
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Real estate billionaires Stephen Ross and Jeffrey Soffer are teaming up to develop a luxury hotel at Miami International Airport.
The development — proposed by a joint venture between Ross’s Related Companies and Soffer’s Fontainebleau Development — will feature 451 rooms, a pool, event space, valet parking services, and both a restaurant open all day and another on the rooftop.
A “climate-controlled” pedestrian bridge would connect the four-star hotel, designed by Arquitectonica, and Concourse D.
On Wednesday, Miami-Dade County commissioners will hear the proposal for the 1.8-acre, 50-year ground lease. Jimmy Morales, chief operations officer at Miami-Dade County, recommended the proposal be approved, according to a filing made to Miami-Dade County. The agreement would also be subject to the Federal Aviation Administration’s approval.
The lease is expected to generate $240 million in revenue for the county over the next five decades, per the filing. For the first year of the lease, rent would amount to $2.5 per square foot, equating to $197,832. Once construction is completed, which is expected to take four years, the developers will pay $2.5 million or 3.5 percent of the hotel’s gross revenue, whichever is higher.
The proposal comes as MIA’s passenger count is growing. Last year, the airport served 50.6 million passengers, making it the busiest airport in Florida and breaking its previous record of 45.9 million set in 2019.
The development marks at least the third partnership between Related and Fontainebleau, two of the biggest players in South Florida real estate. The two companies previously developed the Marriott Courtyard Downtown Boston and a private service center at the Miami-Opa Locka Executive Airport.
Related constructed Hudson Yards in New York, the biggest private development in the country. In recent years, the New York-based developer has expanded to Miami with plans to build a supertall office tower in Brickell, which recently broke ground. Ross also owns the National Football League’s Miami Dolphins.
Fontainebleau owns the eponymous resort in Miami Beach as well as the JW Marriott Turnberry in Aventura.
Representatives for both companies did not immediately respond to requests for comment.
Julia Echikson can be reached at jechikson@commercialobserver.com.
