Electra America Hospitality Group (EAHG) Acquires Conrad Miami Hotel
Main Photo: The newly-named AKA Brickell
Date: October 2021
Name: Conrad Miami, rebranded on acquisition to AKA Brickell
Location: Miami, Florida, USA
Number of Keys: 201
Seller: Mast Capital and Angelo Gordon & Co.
Buyer: Electra America Hospitality Group (EAHG)
The Electra America Hospitality Group (EAHG) has purchased the Conrad Miami hotel and has rebranded the property to Hotel AKA Brickell.
The 201-key hotel is located at the base of the 36-story Brickell Arch Tower at 1395 Brickell Avenue. The sellers were Mast Capital and private equity firm Angelo, Gordon & Co., who bought the hotel for $72.5 million in 2017.
EAHG was formed in early 2021 to acquire underperforming hotels in gateway cities and reposition them. This latest acquisition is their third hotel purchase this year, following The Roger in June and The Alexandria in July. EAHG was established in February and is a joint venture between Electra America and AKA Hotel Residences.
Hotel AKA Brickell, part of the mixed-use Brickell Arch tower, starts on the twenty-fifth floor and offers 201 guest rooms and suites, an 11-storey atrium, restaurant, fitness and spa facilities, and multiple meeting spaces. EAHG plans to invest $11 million into the hotel and introduce new food-and-beverage opportunities in the lobby and on the rooftop, which is currently occupied by tennis courts.
EAHG has rebranded the property immediately after acquisition. It offers a mix of short term and long term stay options, and will undergo gradual design enhancements from now until spring 2022
“We’ve always envisioned AKA in Miami, a market that is globally appealing, vibrant and filled with opportunity,” said Larry Korman, president of AKA and co-CEO of Korman Communities. “Finding the perfect property is always a journey, and we knew we found a gem in this architecturally significant and well-located high-rise offering. The breadth of design, culture and energy adds great synergy with the DNA of AKA, and we are beyond thrilled to introduce the AKA brand to Brickell Miami.”
“We’re all about choosing markets that are major markets that will recover over the course of time, in the two major segments that we look for, corporate travel and tourism,” Russ Urban, CEO of EAHG, told Commercial Observer.
The Conrad that was managed by Hilton, fits into EAHG’s strategy. “It’s an amazing hotel that’s been poorly managed and poorly branded for years,” said Urban. “Hilton, while a strong international brand … it’s way over represented in that market. There are over 5,000 Hilton rooms in that marketplace and the Conrad was swallowed in all that.”
“In addition to the already recovered leisure market, the acquisition of the Brickell Miami property is particularly exciting because of the recent tsunami of corporate relocations to Miami. Dozens of high-profile technology firms and financial institutions from New York and internationally have announced plans to open offices in Miami’s downtown and Brickell neighbourhoods. Now, more than ever, we are confident that corporate and business-related travel will return strong and that high-end, multi-night stay properties in Miami’s urban core will be in high demand.”
Price: Undisclosed
THPT Comment: Yet more proof that the corporate traveller is back in business with new companies relocating to Brickell from New York and other US cities.
First Seen: Boutique Hotel News
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