High-End Destination Resort Hotel Located on Irreplaceable Parcel
$25 Million Repositioning in 2024; Will Reopen in Early 2025 Under Sonesta’s Lifestyle Brand, The James
Service Properties Trust (Nasdaq: SVC) announced today that it has acquired the 250-room Nautilus Hotel located at 1825 Collins Avenue, Miami Beach, FL for $165.4 million, or approximately $661,600 per key. The Nautilus is a lifestyle oceanfront hotel located in Miami’s South Beach neighborhood with 250 guestrooms, including 55 suites, four food and beverage outlets, outdoor pool, spa, fitness center and 17,500 SF of flexible outdoor and indoor event space. The hotel will initially be branded as the Nautilus Sonesta Miami Beach, and undergo a $25 million repositioning commencing in the Summer of 2024 with plans to reopen in early 2025 under Sonesta’s lifestyle brand, The James.
Todd Hargreaves, President and Chief Investment Officer of SVC, made the following statement regarding today’s announcement:
“The acquisition of the Nautilus Hotel provides SVC with an important entry into the South Beach market and adds another high-end destination resort hotel to our portfolio. This is an irreplaceable beachfront parcel located in the heart of Miami Beach in an area with numerous high-end luxury and upper upscale hotels. We are confident that the rebranding as a Sonesta and subsequent renovation will result in an attractive return on SVC’s investment.”
About Service Properties Trust:
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust, or REIT, with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of March 31, 2023, SVC owned 220 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of March 31, 2023, SVC also owned 765 retail service-focused net lease properties totaling over 13.3 million square feet throughout United States. SVC is managed by The RMR Group (Nasdaq: RMR), an alternative asset management company with over $37 billion in assets under management as of March 31, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA. For more information, visit www.svcreit.com.
WARNING REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon SVC’s present intent, beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond SVC’s control. For example, Mr. Hargreaves states that the rebranding to Sonesta and subsequent renovation of the Nautilus Hotel will result in an attractive return on SVC’s investment; however, SVC may not realize all of the benefits it currently anticipates.
The information contained in SVC’s filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in SVC’s periodic reports, or incorporated therein, identifies other important factors that could cause differences from SVC’s forward-looking statements. SVC’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon forward-looking statements.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
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Contacts
Stephen Colbert, Director, Investor Relations
(617) 231-3223
