Florida & Gulf Coast + South Florida + Hospitality | May 9, 2022

Sunstone Hotel Investors, Inc., has acquired The Confidante Miami Beach for $232 million

Sunstone Plans $232M Acquisition, $60M Transformation of Miami Beach Hotel

Sunstone Hotel Investors, Inc., has entered into a definitive agreement with an affiliate of Hyatt Hotels Corporation to acquire the 339-room The Confidante Miami Beach for $232 million ($684,000 per key).

The purchase price represents a 17.3x multiple on 2022 forecasted hotel EBITDA and a 5.0% capitalization rate on 2022 forecasted hotel net operating income. The acquisition will be funded through a combination of cash on hand and from borrowing on the company’s currently undrawn revolving credit facility.

The hotel, located on 1.5 acres of fee-simple, oceanfront land in Miami Beach, will undergo a $60-million transformation and rebranding under Hyatt’s luxury brand to Andaz Miami Beach. Upon completion of the renovation, the company expects the Hotel to generate an 8% to 9% stabilized net operating income yield on the total investment in the hotel, including the planned repositioning.

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About Lisa McDuffie

Lisa McDuffie arrives at ConnectCRE via REALTOR® world, where she served for nearly two decades as communications director for one of the nation’s largest REALTOR® organizations. She supported two membership-elected presidents who were commercial real estate practitioners, and managed the communications initiatives of the organization’s commercial special interest group. When not following the latest commercial real estate news, Lisa is zeroed in on her charismatic off-the-track thoroughbred as she makes the transition from an utterly failed racehorse to a lovely show hunter.

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