The $2.5 Billion Plan to Transform Six Historic Blocks in South Beach
October 22, 2024According to Bloomberg, set to be completed in 2027, Miami’s “Billionaires’ Beach” is being transformed into a sunny counterpart to Manhattan’s 57th Street or London’s Bishops Avenue. Coined by developer Michael Shvo, the name reflects the $2.5 billion being invested into several key blocks along Collins Avenue, Miami’s coastal artery. Renowned global hotel brands are now preparing to bring their five-star luxury to South Beach, marking a monumental revival of an area that once served as the heart of Miami’s luxury tourism industry.
In the late 1930s, Miami’s first beachfront resorts, designed by architects like Lawrence Murray Dixon, Albert Anis, and Morris Lapidus, shaped the skyline with landmarks like the Raleigh, Shore Club, Shelborne, and Delano. Though still standing, these buildings have weathered decades of ownership changes, salt air, and mixed renovations.
Miami’s rising cultural and commercial clout positions it alongside London, Paris, and New York for luxury seekers and business travelers. High-end hotels are now selling multimillion-dollar residences alongside their services, and there’s suddenly a viable way to finance thoughtful renovations of these legacy buildings in the booming real estate market. On Billionaires’ Beach, defined by Shvo as the blocks between 14th and 20th streets on Collins Avenue, major brands are establishing themselves: Rosewood Hotels is revamping the Raleigh, Auberge Resorts Collection is modernizing the Shore Club, California-based Proper Hotels is taking on the Shelborne, and Bulgari is souping up the motel-like Seagull.
The pandemic boosted Miami’s appeal, drawing luxury travelers, renowned chefs, and tech entrepreneurs to its sunny, lockdown-friendly environment. This growth has persisted, with the Greater Miami Convention & Visitors Bureau reporting a 13% increase in domestic tourism from 2021 to 2023. CoStar data shows that Miami ranks No. 1 among the top 25 U.S. hotel markets for occupancy and revenue per available room.
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Source: bloomberg.com
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