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Crescent Real Estate acquired the 157-key Hotel Colonnade Coral Gables, Autograph Collection, the company’s seventh deal through its latest investment vehicle.
Crescent, a real estate operating company and investment advisor based in Fort Worth, Texas, acquired the hotel for $63 million from hotel real estate investment trust Pebblebrook Hotel Trust. HEI Hotels & Resorts will management the property, according to the news release.
The Hotel Colonnade will be Crescent’s third Autograph Collection Hotels property, fitting well within the company’s growing full-service hotel portfolio, Crescent Co-CEO Jason Anderson said in the release.
“Few opportunities exist to acquire an extraordinary historic hotel in a prime submarket like Coral Gables with the incredible economic and demographic tailwinds that Miami is exhibiting,” he said. “We have conviction that Miami and Coral Gables will continue to benefit from a favorable business environment and strong population growth for years to come.”
Built in 1926, the Hotel Colonnade was originally part of a planned community designed by George Merrick, the real estate developer known for being the planner and builder of Coral Gables, Florida. In 1988, a portion of the building was converted into a hotel.
The hotel offers nearly 34,000 square feet of indoor and outdoor event and meeting space, including a 9,000-square-foot marble tile hotel rotunda.
Crescent is planning a multimillion-dollar renovation of the property to enhance guest experiences and keep it positioned to capitalize the growth of Coral Gables and the greater Miami area.
Announcing the sale at the end of March, Pebblebrook reported the Hotel Colonnade’s net operating income for the trailing 12 months ending Dec. 31, 2022, was $4.1 million. Its hotel earnings before interest, taxes, depreciation and amortization was $4.8 million. Based on the hotel’s performance in 2019, it’s $63 million sales price represents a 15.4-times EBITDA multiple and a 5.5% NOI capitalization rate. Both NOI periods are after an assumed annual capital reserve of 4% of total hotel revenue.
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