Electra America, AKA purchases Conrad Miami hotel in Brickell – Commercial Watcher
Electra America Hotel Group (EAHG), a joint venture between Electra America and hotel brand A.K.A, have acquired the Conrad Miami Hotel at Brickell, the JV announced.
The 201-key hotel, located at the foot of the 36 floors Brickell’s Arch Tower To 1395 Brickell Avenue, will be renamed AKA Brickell.
The sellers were Mast capital and private equity firm Angelo, Gordon & Co., which acquired the hotel for $ 72.5 million in 2017.
EAHG was formed in early 2021 to acquire and reposition underperforming hotels in gateway cities, and this is the third deal it has reached so far.
“We are all looking to choose markets that are major markets that will recover over time, in the two main segments we are looking for, business travel and tourism ”, Russ Urban, CEO of EAHG, told Commercial Observer.
The Conrad, managed by Hilton, are part of the EAHG strategy. “This is an amazing hotel that has been mismanaged and poorly branded for years,” said Urban. “Hilton, although being a strong international brand… it is well over-represented in this market. There are over 5,000 Hiltons in this market and the Conrad has been engulfed in it all.
EAHG plans to invest $ 11 million in the hotel and introduce new dining opportunities in the lobby and on the rooftop, which is currently occupied by tennis courts.
“What we are trying to do is create a sense of belonging in hotels,” said Larry korman, president of AKA. “There is just this opportunity to buy these traditional hotels and reimagine them differently, to have different places and spaces on each floor that feel like home.
The group also talks to the architect Gene Kohn of Fox Kohn Pedersen, whose building was designed by the firm, and interior designer Michel Gabellini, on updating part of the design, Korman said. Currently, the layout is a bit disjointed. “We use them to reconnect all spaces in a fluid way, ”said Korman.
While some South Florida beach and resort hotels have fully rebounded, the hospitality industry is still suffering from a lack of business and international travel – which is just starting to return.
“The corporate market has just started to come back, and there is a lot of influx of expanding and new businesses in Brickell, New York and overseas and beyond. It’s just happening; the second area that excites us is the return of the international traveler, ”said Urban.
EAHG is targeting another Miami beach property, although that deal is still being negotiated. She is also actively seeking offers in New York, Washington, DC, the West Coast and London.
Urban declined to comment on the pricing, citing confidentiality agreements.