BH Group and Prime Group can charge ahead with plans for a Homewood Suites By Hilton hotel near Gulfstream Park, as South Florida’s hospitality sector expects growing demand this year.
On Wednesday, the Hallandale Beach City Commission by a unanimous 7-0 vote approved a site plan for the joint venture’s 15-story project with 246 rooms and 281 parking spaces at 804 South Federal Highway. The partnership can now move on to the permitting and groundbreaking phases.
Aventura-based BH is led by Isaac and Liat Toledano, and Hollywood-based Prime is led by Larry Abbo. Designed by Hollywood-based Prime Design Associates, the hotel would also have a ground-floor cafe, restaurant and an enclosed public plaza.
The city commission also approved a mechanical parking lift for 40 valet spaces and agreed to increase the height of the building by one story because the development site is capped at 14 stories.
In the tri-county region, hotel landlords can expect a rise in room rates and revenue in the coming months, according to a recent CBRE report. In Broward County, the average revenue per room is expected to grow by 2.4 percent, and the average daily rate is projected to increase by 1.4 percent in 2025, the report states.
But only a few projects, including the BH and Prime Hilton-branded hotel, are slated for construction this year, CBRE found. High financing and construction costs are limiting new hotel development. Potential additional tariffs, labor shortages or the Fed pulling back on further interest rate reductions could further slow hospitality construction.
BH and Prime paid $6.5 million for the 0.8-acre vacant property in May. The joint venture abandoned a previous site plan to develop a 14-story building with 138 condo-hotel units, 60 hotel rooms and 4,000 square feet of retail space. The hotel development site is near the Seville Mobile Home Park that’s been targeted for redevelopment. Property owner Seville General Partners, led by Paul Rosen, is seeking city approval to rezone the 7-acre property at 426 Northeast Fifth Street and 515 North Federal Highway to allow six mid-rise buildings offering a mix of retail and offices.
