CLIENT NEWS: New owners start $85M renovation of historic South Beach hotel
January 3, 2024The new owners of Shelborne South Beach are embarking on major renovations at the historic Art Deco-style hotel.
Westdale Properties, a Toronto-based real estate developer; King Street Capital Management, a New York-based global investment management company; and Cedar Capital Partners, a London-based real estate investment firm, are putting $85 million into the renovation project, the companies announced in a joint press release.
Located 1801 Collins Avenue in Miami Beach, the 82-year-old hotel will have its guest rooms, restaurants, lobby, pool deck, cabanas and meeting and event spaces redesigned. The renovation will modernize the property while maintaining the mid-20th century architecture and style.
The three companies worked with the city of Miami Beach and local preservation agencies to come up with the restorative renovation project, which began in August.
“We are thrilled to see the historic Shelborne South Beach begin its renovation and rehabilitation project,” said Daniel Ciraldo, Executive Director of the Miami Design Preservation League.
“We are thankful to the owners for their investment to preserve the iconic hotel designed by Igor Polevitsky, with a later addition by Morris Lapidus,” he said. “It is truly one of the great Art Deco district landmarks.”
Shelborne South Beach is closed during renovations, according to a property announcement on Agoda.com, an online travel agency.
When the multimillion-dollar revamp is complete, Shelborne South Beach will be managed by Proper Hospitality, a California-based boutique hotel operator. The Miami Beach hotel will be Proper’s first Florida property.
Shelborne South Beach by Proper will feature 251 guest rooms and suites. It’s expected to reopen in early 2025.
“Our intention is to retain, and, in fact, restore, all of the original heritage elements and imbedded history in order to make the new Shelborne South Beach by Proper capable of ushering in, and once again elevating, the famous Miami Beach Art Deco destination,” said Mitchell Cohen, Chief Operating Officer of Westdale Properties.
“It is a perfect fit for us as Proper Hospitality shares our objective of ensuring the heritage of the Shelborne South Beach continues and will be protected and enjoyed by future generations,” Cohen added.
Shelborne South Beach was originally built in 1940 as a 14-story hotel. The oceanfront property opened in 1941 in Miami Beach’s Art Deco Historic District.
Miami Modern (MiMo), a regional architecture style that became popular after World War II, was also incorporated into the Shelborne South Beach design, which added contemporary tropical elements.
“As the South Beach district continues to transform, we believe the hotel will further cement the area’s reputation as a premier global destination, aligning with our mission of adding value to neighborhoods through thoughtful design and execution,” said Mark Van Zandt, managing director and co-head of real estate at King Street.
Westdale Properties, King Street and Cedar Capital purchased the Shelborne South Beach in 2020 for $120 million. Combined, the three companies have over 94 years of experience.
