South Beach's famous Raleigh Hotel has been sold for $55 million, and the new owners are already quite familiar with the area's hospitality industry. They own some of the Raleigh's rivals. Sam Nazarian, who just opened the SLS Hotel on the same block, and David Edelstein, owner of the W South Beach, went halfsies on the 105-room hotel.
The duo bought the hotel from real estate investment firm the Brilla Group who in turn had bought the hotel for $30 million back in 2009 from playboy hotelier Andre Balazs.
Though, they didn't just buy the hotel. They also bought the "Raleigh brand."
The pair hope to open other Raleigh hotels through out the world. That appears to be the latest trend in the luxury hotel market.
If you like this story, consider signing up for our email newsletters.
SHOW ME HOW
You have successfully signed up for your selected newsletter(s) - please keep an eye on your mailbox, we're movin' in!
Several hotels using the name of the nearby Delano Hotel are slated to open through around the world in the coming years, and, conversely, several upscale chains have come to South Beach in the past few years, including the SLS, W, and the Mondrian.
Though, before the new owners go off opening new hotels, they'll give the original a facelift. According to The Wall Street Journal, they'll spend somewhere between $15 and $35 million revamping and expanding the hotel. Up to 70 rooms and new space for bars and restaurants could be added, and chef Michael Schwartz will likely open a new restaurant on the property.
Which is all fine and good (and up to the decision of the historic preservation board), but just don't make any changes to that iconic pool.