THE MAYFAIR HOTEL
Located in the heart of Coconut Grove, Miami’s historic arts district, The Mayfair Hotel & Spa is one of the most unique assets in South Florida. Designed by iconic Miami architect Kenneth Treister, the hotel is built around a lush open sky atrium of hanging gardens in an Art Nouveau style. The first two floors of the five story building are dedicated to public areas, including the 4,500 square foot Jurlique Spa, the 140 seat Mayfair Kitchen restaurant, and 20,730 square feet of flexible meeting space, while the next three floors offer 179 guest rooms, all of which are uniquely designed with garden terraces and Japanese soaking tubs. Finally, the rooftop of the hotel provides a resort style deck, swimming pool, private cabanas, and bar overlooking Biscayne Bay and the Miami skyline.
The hotel is situated in the Mayfair in the Grove complex, which totals over 750,000 square feet and consists of office, retail and residential space. Major tenants include Sapient (70,000 square feet), Sony Music (60,000 square feet), and GE Digital (42,000 square feet). Directly across the street from the hotel is Coco Walk, the newly re-developed luxury outdoor dining, entertainment and office mall.
Copperline acquired the hotel in 2014 for under $28,000,000 with a private equity capital partner. Affiliates of Copperline served as both the operating general partner and as the hotel management company. Converted in the late 90’s to a condo-hotel, Copperline’s business plan was to devolve the condo-hotel nature of the property by buying back outstanding keys owned by third parties. At the date of purchase, 20 of the 179 keys were owned by third parties, but under Copperline’s ownership, all 20 keys were re-acquired at roughly 1/3 the value per key that Copperline purchased the asset for. In addition to eliminating the inefficiencies of the condo-hotel structure, Copperline spearheaded a massive renovation of the hotel, including a full soft and hard good upgrade of the 179 keys, a redesign of the spa, restaurant, lobby and meeting space, and the engineering and development of the hotel’s golden jewel, it’s rooftop pool and bar.
With our business plan complete and the hotel operating at peak performance, in June of 2019, Copperline and its partner sold the hotel. The $46,750,000 sale price equated to $261,000 per key and generated the partnership a 28% IRR over its 5 year hold of the asset.