1655-8 African American/Blacks however, again questioned the use of city funds for a private project.
TAG: 9501300147
24 of 34 , 17 Terms
mh95 NEW HOTEL CHAIN SOUGHT
04/18/1995
THE MIAMI HERALD
Copyright (c) 1995, The Miami Herald
DATE: Tuesday, April 18, 1995 EDITION: FINAL
SECTION: LOCAL PAGE: 2B LENGTH: 54 lines
SOURCE/CREDIT LINE: TONY PUGH Herald Staff Writer
NEW HOTEL CHAIN SOUGHT
FOR BLACK-OWNED PROJECT
One month after Sheraton Hotels canceled plans to anchor a proposed
black-owned hotel in Miami Beach, project developers say they hope to reach
agreement by April 29 with one of eight companies vying for the South Beach
site.
Peter Calin, president of HCF Group which owns the development rights,
said the Westin, Wyndham and Peabody chains are front-runners. Each has sent
representatives to Miami Beach to explore the project, Calin said.
To increase revenue and lower construction costs, HCF has scrapped its
original plan for a 265-room, all-suites hotel and introduced two new
proposals. The first calls for a 350- to 400- room, full service hotel with
guest rooms and suites.
Calin said each chain had concerns about the per-room construction costs
and potential revenue of the all-suites model, which had fewer, more expensive
rooms . In addition to more rooms, the new hotel would provide more meeting
space as well.
A partnership of four area black businessmen, HCF won the rights to build
a hotel in the 1500 block of Collins Avenue last summer. The estimated $40
million project was specially designated for African-American ownership and
was the major objective of a 20-point accord that resolved the black tourism
boycott in 1993 .
The HCF Group was given 90 days to find a new hotel operator after
Sheraton Hotels backed out of plans to anchor the facility last month. The
time constraints have forced HCF to consider a smaller 220-room, limited
service hotel if the deal for the larger one can' t be completed.
Calin said he ' s had "very preliminary" discussions with the Loews hotel
chain about operating the smaller hotel in conjunction with their planned
830-room convention hotel at 16th Street and Collins Avenue.
Dacra Development Corp. has expressed interest in building the smaller
hotel, Calin said. Dacra is best known for purchasing and refurbishing South
Beach landmarks, including a block of buildings on the north side of Espanola
Way and the Webster, Marlin, Cavalier and other Art Deco hotels on Collins
Avenue.
Calin said the smaller hotel wouldn't be as "big a win" for the black
community, but the deal would be easier to complete in the time allotted by
the City Commission of Miami Beach. Those guidelines call for HCF to select a
chain by April 29, and ink a deal for the hotel by mid-June.
If that timetable is kept, Calin said ground-breaking could begin late
this year. If not, HCF could lose the development rights.
Calin said HCF is still looking for local minority investors to help
raise $4 million needed to complete the deal.