Related Cos. Scores Approvals for Convention Center Hotel in West Palm

reprints


Stephen RossRelated Companies has yet another major development in West Palm Beach in the works, having scored the approvals for a $300 million hotel near the city’s convention center.

The 20-story project will feature 404 rooms at 900 South Rosemary Avenue, east of the 1.1 million-square-foot Palm Beach County Convention Center. The 1.8-acre lot is currently home to a surface parking lot that Related owns. 

SEE ALSO: MCB to Lead Massive Mixed-Use Development in Silver Spring

“We look forward to working with Palm Beach County on the next steps and aim to break ground within a year,” Gopal Rajegowda, a partner at Related Southeast, said in a statement.

The New York-based developer already owns a similar property: the 400-room Hilton West Palm Beach that’s connected to the convention center. 

The upcoming hotel will be branded after Hilton’s Signia, which operates large establishments often connected to convention centers

Palm Beach County officials had initially wanted a hotel — one not associated with Hilton — to be situated on county-owned lots and house 600 rooms. 

But officials nixed proposals by Atlanta-based Portman and a venture between Sonneblick Investments and AB Capital Busch Investments that met those requirements because they did not secure a surety bond, another requirement, according to the Palm Beach Post.

Related’s proposal came with a $300 million surety bond from Markel Insurance Company.

The project adds to Related’s sprawling developments across West Palm Beach. It owns The Square, a nearby 600,000-square-foot mixed-use development that it’s expanding with a new rental property, an 800,000-square-foot office project and another office development just outside of The Square. 

Related is also building One Flagler, a 25-story office tower, and has launched sales for two condo projects. For the RAMSA-designed South Flagler House, it paid a staggering $195 million for the 3-acre site in August. 

Update: The story was amended to include a comment from Related.

Julia Echikson can be reached at jechikson@commercialobserver.com