East Miami Hotel owners Trinity Investments and Certares Management have secured $185 million in refinancing for the 352-key hotel located in the heart of Miami’s Brickell financial district, with Colliers' U.S. Capital Markets arranging the deal.
Deutsche Bank provided a $152.5 million senior loan as part of the deal, while the remaining mezzanine loan was provided by KSL Capital Partners. Trinity Investments and Certares Management purchased the hotel from developer Swire Properties for $174 million in 2021.
In a prepared statement, Mark Owens, who alongside Colliers' U.S Capital Markets’ hospitality practice group secured the refinancing on behalf of the owners, said the hotel's "strong performance” made it an attractive opportunity for debt capital markets.
Miami remains one of the most active U.S. markets for hotel investment. Earlier this year, the Ritz-Carlton Key Biscayne Miami sold for $400 million, with locally based Gencom taking back a majority interest in the 423-room hotel, a transaction that drove the city to secure the top spot for U.S. hotel investment in the first quarter.
Separately, Owens said in an emailed statement to CoStar News that Brickell remains "one of the most desirable 24/7 destinations," adding that the area's dynamics would be improved by the opening of 830 Brickell. The building will be the first top-tier office tower to open in the area in over a decade and is the future home of prominent tenants that include billionaire Ken Griffin's hedge fund Citadel, Microsoft and a dozen others.
The hotel’s connectivity to Brickell City Centre “provides an additional identity that is known both here and abroad,” added Owens. Other major upgrades to the Four Seasons along Brickell Avenue and Swire Properties' planned redevelopment of the Mandarin Oriental “should prove advantageous for pricing power of the area’s luxury tier,” he said.
The East Miami Hotel was originally developed by Hong Kong-based Swire Properties and opened in 2016. The hotel is part of Brickell City Centre, an open-air mixed-use mall that includes two condo towers, offices and over 500,000 square feet of retail, restaurant and entertainment space. The entire complex totals over 5 million square feet of space.