MIAMI–()–Brilla Group, a Miami-based private equity firm focused on the hotel and resort asset class in South Florida, the Caribbean, México, and Colombia, announced today the sale of one of its portfolio assets, The Raleigh, to a joint venture between David Edelstein, owner of Miami Beach’s W Hotel, and Sam Nazarian, Chairman and CEO of sbe and its subsidiary SLS Hotels.
“The sale of The Raleigh represents a successful exit for Brilla,” said David Brillembourg, Chairman and CEO of Brilla Group. “Our objective is to generate value at the asset level to subsequently complete investment cycles that generate projected returns to our investors.”
Brilla Group acquired The Raleigh with AJ Capital Partners in 2009 for US$ 30 million in an off-market, all-cash transaction. Since then, Brilla has implemented a clear strategy to add value to the asset, working closely with the hotel’s management to strengthen performance by emphasizing its F&B and events components.
The strategy proved to be a success, repositioning the hotel at the top of its competitive set and playing a major role in promoting it as one of the most desired locations for major city and private events. Today The Raleigh is the host of prestigious events such as Art Basel, Miami Beach Polo World Cup, and the Mercedes-Benz Fashion Week Swim.
“Since acquiring The Raleigh, we have invested in preserving the 70-year history and legacy of the property,” noted Brillembourg. “Selling this emblematic hotel represents an excellent value for Brilla and a smart strategic initiative for Edelstein and Nazarian, who share our vision for this iconic property.”
Designed and built in 1940 by famed Art Deco architect L. Murray Dixon, The Raleigh is an iconic 105-room oceanfront hotel in the heart of South Beach with an expansive oasis sanctuary of private cabanas and the famed Esther Williams pool. While SLS will manage the property as a complement to the newly opened SLS Miami Beach, it is committed to preserving and enhancing The Raleigh’s distinctive essence.