Loading...
1675-14 Ritz-Carlton 3 of 5, 2 Terms mh UPGRADE INTO A RITZ? 04/21/1998 THE MIAMI HERALD Copyright (c) 1998, The Miami Herald DATE: Tuesday, April 21, 1998 EDITION: Final SECTION: Business PAGE: 7B LENGTH: 66 lines ILLUSTRATION: photo: Ritz Carlton chain (a) SOURCE/CREDIT LINE: By DALE K. DuPONT Herald Business Writer UPGRADE INTO A RITZ? DILIDO IS COUNTING STARS The Dilido Hotel in Miami Beach is going deluxe. Owners of the Art Deco district hotel, at Collins Avenue and Lincoln Road, are discussing a joint venture with the developers of the Ritz-Carlton condominium project in Coconut Grove to remake the 334-room property. They are talking about pumping in $100 million to bring the early 1950s-era hotel to five-star condition and possibly hang a Ritz flag on it. If the project goes through, it would be further evidence that major hotel companies want their names attached to Miami Beach properties and that the Beach has become a hotbed for developers. Bruce Fahey, president of McCann/Grove Miami Holdings, and William Madden, managing member of McCann Real Equities Development, would not say exactly where negotiations stand, suggesting only that a resolution was several months away. Plans are close to being filed with the Miami Beach Design Review Board. McCann approached the Dilido several months ago. "We have been looking for an opportunity to refurbish the hotel with some concept that would be exciting for the Beach, " said Bruce Lazar, Dilido's vice president and general counsel. "Over the last two years, everyone's knocked on our door. " "The Dilido is doing very well, but it's a 2-1/2 star property, " Lazar said. He represents Alfredo Lowenstein, who has owned the Dilido since the early '70s and also owns the Seville at 29th Street and Collins Avenue. "We have looked at the Dilido site, and, hopefully, we can have a hotel there, " said Karon Cullen, spokeswoman for the Ritz-Carlton, which is owned by Marriott. "It's one of about 60 sites we're looking at worldwide. " She said it was too early to say what the hotel would be called, but the company likes to have its name plus the destination, like Ritz-Carlton South Beach. Two Ritz-Carltons would appeal to different audiences. The Grove would attract business travelers, and the Beach would cater to tourists. "You've got a beach that's picking up very nicely, " said Miami hospitality consultant Scott Brush. Luxury hotel developers have been scouring the area for years, said Scott Berman, director of Coopers & Lybrand's hospitality consulting group in Miami. But barriers to entry are high because vacant land is scarce "making it very difficult to make a deal work, " he said. A Ritz would complement new ventures like the $135 million, 800-room Loews convention hotel and other renovations on the Beach as well as proposed high-end hotels like the Mandarin Oriental on Brickell Key. A Ritz also would command rates of more than $200 a night. In season, the Dilido's rates range between $99 and $160. McCann then would have two major projects in South Florida. "We are very bullish on the city of Miami, " Madden said. Added Fahey: "We're down there, and we'd like to maximize our operations. " McCann expects to start construction in July on the $100 million hotel/condominium in the Grove on land across Southwest 27th Avenue from the deluxe Grand Bay Hotel. The 250-room hotel will occupy the first 14 floors of one of two 20-story towers. The remaining floors will have 30 condos with prices starting at $500,000. The second tower will have 95 condos. McCann, an Armonk, N.Y.-based real estate and construction company, has developed shopping centers and offices mainly in the Northeast. CAPTION: Herald File Photo A DREAM OF LUXURY: The 2-1/2 star Dilido, at Collins Avenue and Lincoln Road, commands rates that range between $99 and $160 during tourism season. As a Ritz, it could set rates of more than $200. The property is one of about 60 that the Ritz-Carlton chain is looking at worldwide for new ventures. TAG: 9804230448