Hilfiger's Raleigh Group Buys Miami's Raleigh Hotel for $56M

The Raleigh Hotel, located in the Art Deco district of Miami Beach, traded hands this week as the luxury hotel was sold for $56.6 million to The Raleigh Group, a venture formed by designer and entrepreneur Mr. Tommy Hilfiger. The 105-room, eight-story Art Deco hotel at 1775 Collins Ave. previously sold for $39.5 million to the sellers in December 2012. The Raleigh Group said in a statement it aims to build a "luxury lifestyle hospitality brand" with the support of with Mongeau Capital, the private equity arm of the Mongeau family, which owns the Avington Group merchant bank, according to a CNBC report. Formerly owned by David Edelstein and Sam Nazarian, the Miami Beach location will continue to be managed by sbe Entertainment Group.

"The Raleigh Hotel is a true Miami Beach treasure with sophistication and style, making it the perfect property for us," said Mr. Hilfiger. "The 1940's design of The Raleigh and its rich history are central to our plans to rejuvenate the property. I'm really pleased with the team I've surrounded myself with and know that we will deliver a world-class experience worthy of The Raleigh brand."

"The location and position of the Raleigh in the Miami Beach marketplace is perfect for our strategy," said Raleigh Group CEO David Pisor. "We will invest significant resources to preserve the property's unique style while embracing the local flavors and culture that help define it."

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Hilfiger Buys MetLife Clock Tower for $170M

Tommy Hilfiger has purchased 5 Madison Avenue, also known as the Clock Tower building, for $170 million with designs to turn the property into a hotel according to a New York Times article. The clothing designer purchased the property from Africa Israel USA (AFI), the American branch of Africa Israel Investments, an international holdings and investments group. Hilfiger sold his company last year for $4 billion has reportedly been shopping for a places to open his new hotel for some time.

"It's certainly a landmark in a neighborhood that's become more hotel-friendly in recent years," John Fox, a hotel industry specialist at PKF Consulting, said. "On the other hand, I'm not sure what a Hilfiger brand hotel is. I assume it's something with a preppy look to the design."

The famous 42-story Clock Tower building, once home to the Metropolitan Life Insurance Company is a preeminent icon of the Manhattan skyline. The 700-foot building was built in 1909 and remained the tallest building in the world until the Woolworth building beat it out in 1913. Overlooking Madison Square Park, AFI previously had plans to convert the tower into super high-end condominium apartments. AFI sold the property for $30 million less than the developer bought it for in 2007.

For more news and information visit Blumberg Capital Partners.