Kabani Hotel Group Has facilitated the sale of Stadium Hotel in Miami. The 217 interior corridor rooms sold for $24million, or about $110,644 each.
The hotel was built in 1973 and renovated last year. It is 1.6 miles away from Hard Rock Stadium. Suraj Dalal and Ahmed Kabani, CEO/founder of Kabani Hotel Group were the exclusive brokers for this deal. The buyer, a Californian institutional investor focused on adaptive re-use, was represented by Ryan Shaw from Marcus & Millichap.
Suraj said, “Managing buyer expectations was a challenge due to limited comparable data about hotel performance and prior marketing by ownership. Financing complexities were also tied to historic financials.” “However, our formal procedure generated strong international demand from various groups like European institutional investment firms demonstrating the South Florida Market. The buyer closed the deal in less than 75 days with an all-cash bid that was around 20% higher than the hospitality offers.
The property was sold at a capitalization rate of 4.64% and a multiple of 5.03x revenue per room.
“This process was a prime example of how we like to collaborate with brokers to maximize pricing for our clients,” said Kabani. “Although this was not a typical hotel sale, our past successes with similar assets, such as Radisson Red Miami Airport, helped navigate the buyer pool. This transaction shows renewed optimism in this market, and that even complex deals are possible with the right connections.
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