Home developer buys Hialeah hotel for $15.25 million

South Miami-based home developer The Estate Companies has purchased the Ramada Hotel in Hialeah for $15.25 million.

“The distressed hotel sector has created investment opportunities that firms like ours are ready and able to capitalize on,” said Jeffrey Ardizon, a principal of The Estate Companies, in a statement.

The purchase of the fiveacre site, at 1950 W. 49th St., closed Friday, according to the release. The Downtown Miami-based LV Lending provided $11.5 million in financing.

The Estate Companies has yet to finalize a plan for the site, according to the firm’s spokesperson.

Other home developers are expected to buy South Florida hotels, said J.C. de Ona, southeast Florida division president of Centennial Bank, to convert the buildings to apartments or redevelop the land. “The pandemic has spurred distress with the hotels. Even if an owner is able to carry it, the owner may have to make the decision whether they are going to carry the hotel long term. The longer the pandemic goes the more distress you’re going to see.”

Hotels, especially older ones, that catered primarily to the airports or ports are more likely be bought for redevelopment, de Ona said. Those in areas, including Hialeah, with a growing renters population might have particular appeal.

The Estate Companies acquired the 258-room hotel, which opened in

1970, because of its location. “The site is situated on arguably the City of Hialeah’s busiest corridor and main artery. The City of Hialeah is a market with very high barriers to entry, strong demographic support and close in proximity to some of the largest employment hubs in South Florida,” Ardizon said in a statement.

Since 2018, Hialeah has seen existing property values increase by 6.7%.