LOS ANGELES--(BUSINESS WIRE)--New York-based developer, David Edelstein, and Los Angeles-based hospitality group, sbe, helmed by its Founder, Chairman and CEO, Sam Nazarian, today announced the joint acquisition of South Beach’s legendary Raleigh Hotel from the Brilla Group. Both industry pioneers recognized for individual developments within the hospitality and real estate sectors, Edelstein and Nazarian will revitalize the iconic property to premiere as the flagship for the expansion and optimization of the new Raleigh brand.
This unexpected and dynamic partnership between Edelstein, the visionary developer and owner of W South Beach hotel and one of the pioneers of the famed Lincoln Road retail mall, and Nazarian, owner of the recently opened SLS Hotel South Beach, will set these two industry power players on a path to deliver a revitalized Raleigh Hotel brand that will debut in bustling Miami Beach. Merging the hotel’s history with Edelstein and Nazarian’s forward-thinking and keen sense of design, lifestyle, nightlife and entertainment trends, the new Raleigh in Miami Beach will target the hotel’s loyalists, as well as guests seeking highly personalized luxury service. Edelstein and Nazarian will launch an extensive renovation plan to preserve and refresh the existing framework of the property before opening additional Raleigh hotels in other key markets around the country.
“David and I share a deep passion for South Beach, and ensuring a celebrated jewel like The Raleigh is preserved in a manner fitting of its great legacy is a mission we are both supremely committed to,” said Nazarian. “South Beach is one of the world’s premier hospitality destinations, and The Raleigh provides the perfect complement to the community and to the experiences offered at SLS Hotel and W South Beach.”
“The Raleigh is a hotel that is truly representative of Miami Beach,” said Edelstein. “Its rich history and overall guest experience is something that has drawn people to this property for many decades. I want to transport The Raleigh’s trademark elements and adapt them to fit within different environments. I admire the work Sam has done with his SLS and Redbury hotel brands and look forward to the creative energy he and his team will infuse into this project.”
sbe Hotel Group will assume full operational control of the property this month and, in collaboration with Edelstein, will initiate the comprehensive renovation expected to begin in April 2013 and run until November. The initial phase will include guestroom renovations, followed by the lobby and other common areas. The property will remain fully operational throughout the process. Final renovation plans are expected to be unveiled later this month as sbe and Edelstein also work to overhaul the management, marketing and sales strategies.
In addition to retaining all current hotel staff, sbe and Edelstein are proud to resume The Raleigh’s partnership with James Beard award-winning chef Michael Schwartz. Chef Schwartz, who is best known for Michael’s Genuine Food & Drink in Miami’s Design District and Grand Cayman, will continue to oversee food operations and is expected to debut a new restaurant concept at the hotel in 2013, in concert with the renovation.
The Raleigh is a landmark Art Deco hotel with a significant history in Miami Beach. Originally built in 1940 during the area’s hotel boom, The Raleigh has continued to evolve during its more than 70 years on Collins Avenue. The hotel has welcomed a range of guests, from high-profile personalities to local vacationers; it even served as a housing facility for US troops during World War II. In more recent times, The Raleigh has also cemented itself as a go-to dining and evening destination for both South Floridians and international globetrotters.
“We’ve demonstrated our ability to successfully reinvigorate hotel properties and leverage our operational expertise to deliver something that resonates with our clientele in a powerful way,” said Arash Azarbarzin, President of sbe Hotel Group. “There are so many timeless elements to the property and we’re looking to enhance those features and position the hotel for another 70 years of success.”
In addition to SLS Hotel and The Raleigh, sbe has also recently opened Hyde AmericanAirlines Arena in partnership with the world champion Miami Heat, providing the company with a significant hospitality footprint in Miami region.
sbe is a creative hospitality company that develops, manages and operates award-winning hotels, restaurants and nightlife. Through exclusive partnerships with cultural visionaries, sbe is dedicated to delivering the best in design, culinary and entertainment. Already a proven leader in the hospitality and real estate industries, sbe has over 70 properties currently operating or in development, and has expanded several of its flagship brands including SLS Hotels, Katsuya by Starck, The Bazaar by José Andrés and Hyde Lounge nationally and internationally. Founded in 2002 by Chairman and CEO Sam Nazarian, sbe is a privately held company. More information about sbe can be obtained at sbe.com, or by downloading the sbe App.
ABOUT BRILLA GROUP:
Brilla Group is a Miami-based real estate private equity firm focused exclusively on the hotel and resort asset class in South Florida, the Caribbean, México, and Colombia. Brilla Group specializes in creating tailored investment solutions for institutional investors, high-net-worth individuals and family offices. Brilla Group has closed investments in México, The Bahamas, French West Indies, British West Indies, Miami Beach and Bal Harbour (Florida); Brilla Group has also closed a Colombian-based institutional private equity fund dedicated to the sector in Colombia. To learn more, visit www.brillagroup.com.