ARTIC Buys Viceroy Miami Hotel from Pebblebrook Hotel Trust for $64.5M

MIAMI — Pebblebrook Hotel Trust has sold the Viceroy Miami, a 148-room, upscale hotel in Miami’s Brickell district, for $64.5 million. The buyer, Qatar-based investment firm Al Rayyan Tourism Investment Co. (ARTIC), purchased the property with plans to convert the hotel into Starwood Hotels and Resort’s W brand. The new W Miami features a rooftop lounge on the 50th floor, a 28,000-square-foot spa and a 300-foot rooftop pool, Florida’s longest infinity pool that overlooks Biscayne Bay. The property also features five commercial units and 38 condominium hotel units that are part of a hotel rental program. As of April 30, the 50-story hotel had a 12-month trailing net operating income of $2.7 million, making the cap rate roughly 4.2 percent. Pebblebrook, a hospitality REIT, purchased Viceroy Miami in May 2011 for $36.5 million.