There is another James hotel coming up. The Denihan Hospitality Group is extending the James hotel brand to the longstanding Royal Palm hotel in Miami Beach. New York-based Denihan will be branding and managing the 409-room historic hotel that was purchased by KSL Capital Partners LLC last month. KSL has big plans in store for the 72-year-old hotel, including renovations worth $42.6 million.
In August 2010, Sunstone Hotel Investors had purchased the luxury hotel at a bankruptcy auction for $126 million. But following management reshuffling, the trust decided that the Royal Palm did not fit their profile. Denver-based KSL entered the scene and purchased the property for $130 million even as Sunstone put in $90 million as seller financing.
Under KSL’s management, the Royal Palm is set to become the James Royal Palm. KSL currently manages over $3 billion equity. With the addition of the Royal Palm, the firm will now have five luxury hotels in its kitty. Meanwhile, Denihan is quite the veteran in this area. The family-run firm manages 14 luxury hotels. It owns six of them. But only two come under the James brand: a 297-room property in Chicago and a 114-room in Manhattan.
As renovations at the Royal Palm get underway, noted interior designer Lauren Rottet will be in charge. There are plans to build a children’s centre and a spa among other things.
Denihan’s CEO Brad Wilson revealed that the new James hotel in Miami Beach could draw in leisure and business travelers. The plan is to create an independent brand that can offer something different from all the bigger brand luxury hotels in the area.