Fontainebleau Sells Half Ownership in Miami Beach Resort for $375M
- Apr 09, 2008
Las Vegas-headquartered Fontainebleau Resorts L.L.C. has sold a 50 percent interest in the Fontainebleau Miami Beach resort to Nakheel Hotels, a subsidiary of Dubai-based real estate developer Nakheel. Fontainebleau pocketed $375 million on the deal and with its new partner in tow, will continue the $500 million renovation of the luxury property.A celebrated destination, Fontainebleau Miami Beach occupies 17 acres along the ocean. When it emerges from its redevelopment, the resort will feature 1,500 guestrooms, 200,000 square feet of meeting and event space, a 40,000-square-foot spa, as well as restaurants and a nightclub.Fontainebleau anticipates that its partnership with Nakheel on the Miami Beach resort will mark the beginning of a long association. For Nakheel, the acquisition of a stake in the property marks its debut in the Miami resort market.“Fontainebleau is an iconic hotel in one of the premier destinations in the U.S., so our partnership with the property is perfectly in keeping with our strategy of investing in the best assets in the most important markets worldwide,” a Nakheel representative told CPN today. In January, Nakheel acquired London’s Metropole Hotel at White Place with a joint venture partner for $254 million. And in February, the company entered into a definitive agreement to purchase a 50 percent interest in the One&Only Palmilla resort in Los Cabos, Mexico for $315 million.Nakheel Hotels is privately-held integrated hotel development, investment and asset management company. Its portfolio of assets currently under management exceeds $3 billion. Fontainebleau Resorts is a private resort and casino development firm that was established three years ago. The company is also in the midst of developing the $2.9 billion Fontainebleau Las Vegas, a 3,800-room casino resort on the Strip.