Miami Beach’s city commission approved the first reading of a lease that would create a 800-room convention center hotel.
The city has been seeking to build a hotel to complement the Miami Beach Convention Center for decades. The region’s largest convention center is undergoing $500 million in renovations to handle more business in the heart of South Beach.
Portman Holdings wants to finalize a 99-year lease with the city for the parking lot behind the Fillmore Theater, which is adjacent to the convention center. The hotel would have 701 rooms, 99 suites, 95,000 square feet of meeting space, an amenity deck with pools, and a sky bridge to the convention center.
The $405 million hotel was designed by Atlanta-based John Portman & Associates. It would be privately funded.
There were two bidders for the hotel project, but one dropped out early in the process.
“This agreement ensures that the Miami Beach Convention Headquarter Hotel will bring significant economic and community benefits to the City of Miami Beach,” said Jack Portman, vice chairman of Portman Holdings and John Portman & Associates. “We look forward to working with the community to create a hotel that reflects the international destination status of Miami Beach and is a source of pride for residents.”
The developer would pay the city 4 percent of its gross hotel revenues annually. Portman Holdings said the project would generate $2.4 billion in lease and tax revenue for the city during the 99-year lease and create 1,470 direct and indirect jobs.
“We know of many top conventions that want to come to Miami Beach but need an adjacent convention headquarter hotel in order to accommodate their participants,” said William D. Talbert III, president and CEO of the Greater Miami Convention and Visitors Bureau.
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Story by: Brian Bandell – Photo Courtesy: Biz Journals