Fashion designer Tommy Hilfiger has finalized a deal to purchase the Raleigh Hotel in Miami Beach, Fla.
"The Raleigh Hotel is a true Miami Beach treasure with sophistication and style, making it the perfect property for us," Hilfiger said in a statement announcing the deal. "The 1940's design of The Raleigh and its rich history are central to our plans to rejuvenate the property."
The price was $56.6 million, the South Florida Business Journal reported Thursday. The hotel's spokesperson did not reply to a request from CNBC to confirm the reported sale price. David Edelstein and Sam Nazarian were the prior owners.
The hotel, likely by no coincidence, has a name in common with the hospitality group Hilfiger founded: The Raleigh Group.
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.
Located on Collins Avenue in South beach, the 105-room Raleigh Hotel was designed in 1940 by architect L. Murray Dixon, who was famous for his Miami art deco hotels and residences. There is a pool, martini bar and Restaurant Michael Schwartz, operated by the James Beard-award winning chef of the same name.
The Raleigh will be the flagship property of the The Raleigh Group and the hotel will continue to be managed by the sbe Entertainment Group.
"We will invest significant resources to preserve the property's unique style while embracing the local flavors and culture that help define it," David Pisor, the Raleigh Group's new CEO, said in a statement about the South Beach hotel.
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