Israeli company Electra Real Estate has acquired its third U.S. hotel in the past six months, this time targeting Miami — a market attracting a number of new corporate headquarters.
Electra America Hospitality Group, a joint venture between Electra America and AKA, a division of Korman Communities, bought the Conrad Miami hotel for $126.5 million, according to an announcement filed with the Tel Aviv Stock Exchange, where Electra’s stock is traded.
Located in the Brickell Arch Tower, an iconic, 36-story mixed-use building on Brickell Avenue in the heart of Miami’s financial district, the hotel includes 219 guest rooms. The property will be renamed Hotel AKA Brickell, offering a mix of short-term and extended-stay lodging options catering to upscale leisure and corporate travelers.
EAHG intends to spend roughly $11 million on renovations to the property.
Dozens of high-profile technology firms and financial institutions both locally and nationally have announced plans to open offices in Miami over the past few months. Private equity firm Thoma Bravo signed a deal for 37,000 square feet at the under-construction 830 Brickell Ave.; Microsoft signed on for 52,000 square feet at the same building last quarter; Millennium Management leased 74,000 square feet at 1111 Brickell Ave. this month; and Blockchain.com said it would be relocating from New York to the Brickell Avenue area.
This deal marks EAHG’s third hotel acquisition since the joint venture launched with the intent to acquire and reposition underperforming hotels in gateway cities. EAHG also recently acquired a 194-room hotel in New York City and a 178-room hotel in Old Town Alexandria, Virginia, in the Washington, D.C., metro area.
The joint venture plans to remain active in pursuing other hotel opportunities in Miami, New York and Washington, D.C., as well as in cities including Los Angeles and London.
(Updated Nov. 9 with new CoStar data.)