Eldridge Acquires the Hudson Hotel and Delano South Beach from sbe

Main Photo: The Sky Terrace at the Hudson Hotel NYC

Date: December 2020

Locations: New York City and South Beach, Miami, USA

Names: The Hudson Hotel and Delano South Beach…to be renamed

No. of Keys: 878 and 191

Seller: sbe

Buyer: Eldridge, a holding company with a network of businesses across finance, technology, real estate, and entertainment, has today completed the acquisition of the Hudson Hotel and Delano South Beach, located in New York City and Miami, respectively. Cain International, Eldridge’s real estate investment firm, has been appointed to lead a strategic repositioning of both assets. sbe will retain the Hudson and Delano brand names.

The Hudson Hotel is an 878-key hotel located at 356 West 58th Street between 8th and 9th Avenues in Midtown Manhattan. Built in 1929, the hotel enjoys a prime central position, moments away from Central Park, with easy access to world-renowned cultural and entertainment establishments.

Long regarded as one of Miami’s top luxury hotels, Delano South Beach is a 191-key hotel located on the famed Collins Avenue. The historic property was built in 1947 and sits in the Art Deco Historic District. The hotel further benefits from direct beach frontage and several food and beverage operations.

Delano South Beach closed in March 2020 in response to the COVID-19 pandemic and the property will remain closed in anticipation of a significant refurbishment. The Hudson Hotel will also be shutting down all remaining hotel operations in December 2020 in anticipation of a planned upgrade and repositioning. The hotel has not undergone a major renovation in nearly 20 years.

This strategic repositioning appointment will add to Cain International’s growing footprint in the luxury hospitality space, a sector which the firm has exposure to across several gateway cities in the US and Europe. Its US hospitality investments include the Waldorf Astoria Beverly Hills, the Beverly Hilton Hotel, the Raffles Hotel and Residences Boston Back Bay, and the financing of the Aman Hotel & Residences in New York City’s historic Crown Building. The firm has also partnered with leading hospitality brands: Oberoi, Soho House, Six Senses and Rosewood Hotels & Resorts for projects in the UK, France, and Italy.

Eldridge is headquartered in Greenwich, Connecticut, with additional offices in Beverly Hills, New York, and London.

Cain International is a privately held real estate investment firm operating in Europe and the United States. Since 2014, the company has invested $6 billion into real estate debt and equity. Cain International also invests in lifestyle & leisure businesses that deliver experiences, services and amenities for modern consumers. Cain International is a partnership between its CEO, Jonathan Goldstein and Eldridge Industries. Cain International Advisers Limited, the firm’s asset management and investment advisory division, is an SEC-registered investment adviser.

As part of its simplification and asset-light strategy, and with the ambition of accelerating its momentum in the fast-growing Lifestyle hospitality sector, Accor today announces the signing of binding agreements on a new sbe Group’s ownership structure.

Under the terms of these agreements, Accor is taking full ownership of sbe’s Hotel asset light business including the Delano, Mondrian, SLS, and Hyde hotel brands along with most of sbe’s Food & Beverage brands including Cleo, Fili’a or Carna by Dario Cecchini.

These brands will be at the heart of Accor’s newly created global Lifestyle platform (see separate release on Accor’s Lifestyle Platform). Sbe currently operates 22 hotels, with more than 40 properties in the pipeline, which has more than doubled since Accor’s initial investment in sbe in 2018, with key upcoming openings such as Mondrian London and SLS Dubai in 2021.

THPT Comment: This sale is part of Sam Nazarian’s deal to sell the remaining equity to Accor, who in turn have formed a JV with UK’s Ennismore for some 13 brands, all “lifestyle” trendy hotels. Sam takes full ownership of sbe’s Disruptive Restaurant Group Platform and it’s 15 owned restaurant and nightlife venues along with an increased majority ownership of C3, a leading player in digital kitchens and lifestyle food halls business. Good luck Sam.

First Seen: Business Wire

The Hotel Property Team (THPT) is a small group of highly experienced business professionals. Between us, we provide a range of skills and experience which is directly relevant to those involved in the hotel property market.

For more information – Visit www.thpt.co.uk or email info@thpt.co.uk