Blue Suede Buys Former Kayak Hotel in Miami Beach

Just a month after gaining control of the former Kayak Hotel in Miami Beach, loan service provider Trimont Real Estate Advisors sold the Art Deco property to Blue Suede Hospitality Group.

The New York-based investor paid $12.8 million for the 51-room building at 2216 Park Avenue, just northwest of the Miami City Ballet and Collins Park. The two-story structure was completed in 1934 and expanded in 2014.

Back in 2021, travel search engine Kayak, in partnership with Life House, ventured into the hospitality business, opening a hotel in the 25,931-square-foot building. But the establishment closed last year, Skift reported. 

In April, Trimont seized the hotel through a deed in lieu of foreclosure, releasing $13.7 million in debt. The transaction amounted to about $200,000 less than the outstanding mortgage debt on the property.

In 2023, lender Varde Partners launched foreclosure proceedings against Rave Capital, which had acquired the hotel for $20 million in 2020. The lender alleged the New York-based investor had missed the maturity date payment in 2022 and owed $13.9 million. 

For Blue Suede Hospitality, the new owner, the sale marks its latest acquisition in South Beach. Last year, the investor acquired the historic South Beach Plaza Hotel for $26.5 million. It has since rebranded the 79-room property to Pantera Rosa and also owns the nearby Aloha Fridays establishment.

A spokesperson for Trimont declined to comment, while a representative for Blue Suede could not be reached for comment.

Julia Echikson can be reached at jechikson@commercialobserver.com.