Activate Hospitality offloaded a West Palm Beach hotel less than two years after renovating and rebranding it.
The Miami-based firm sold the 11-story, 200-key Delta Hotels by Marriott West Palm Beach for $23.8 million to an affiliate of Toronto-based Palm Holdings, led by Sheetal Kapoor, records and real estate database Vizzda show. The buyer paid $118,750 per room for the hotel, at 1301 Belvedere Road.
Suraj Dalal and Ahmed Kabani of Miami-based Kabani Hotel Group brokered the off-market, all cash transaction, a news release states.
Activate, led by Sagar Desai, bought the 130,400-square-foot building and a development site at 1221 Belvedere Road for $24.6 million in a 2023 bankruptcy sale, records show.
Completed in 1987, the hotel sits on 3.7 acres. The 2.3-acre vacant parcel, which is entitled for another hotel, was not included in the sale to Palm.
Activate rebranded from Holiday Inn to Marriott, Desai said.
“We renovated it in six months and were able to ramp up the hotel in a very strong market,” he said.
Activate was not planning on selling the hotel, but Palm made an unsolicited offer, Desai said.
“We were able to take advantage of an upswing in the market,” he said. “We are still very bullish about West Palm Beach.”
This is Palm’s third South Florida acquisition in recent years. Palm paid $20 million in 2022 for the 209-key Element in Miami, and $16.7 million last year for the 150-room Holiday Inn in Fort Lauderdale, records show.
In another hotel trade this month, New York-based Bridgeton Holdings, led by Atit Jariwala, paid $67.5 million for the 405-key Sheraton Miami Airport Hotel. Bridgeton paid $25.2 million over the 2015 sale price for the 4.8-acre property, amid strong Miami-Dade hotel metrics and the nearby buildout of the $1 billion Miami Freedom Park mixed-use project anchored by Inter Miami CF’s new stadium.
