Billionaire Barry Sternlicht Leads Redevelopment of Miami Beach’s Iconic Standard Hotel
September 6, 2024
A group of investors, led by billionaire Barry Sternlicht, is planning a luxury overhaul of the waterfront Standard Hotel in Miami Beach. The project, designed by renowned architect Bjarke Ingels of BIG, targets the 100-plus-key hotel at 40 Island Avenue and surrounding properties at 1 and 2 Farrey Lane. Kobi Karp Architecture & Interior Design is serving as the architect of record.
The redevelopment proposal outlines transforming the hotel’s east wing into a five-story mixed-use building, which will feature six luxury condos and 50 hotel rooms. The west wing, a three-story structure, will undergo renovations, reducing its hotel rooms from 67 to 50. These plans have been submitted to the city of Miami Beach for approval.
Architect Norman Giller developed the Monterrey Motel and Yacht Club in 1953, but the property was later rebranded as the Lido Spa in 1960. It occupies a prime location on Belle Isle, the westernmost island of the Venetian Islands. The Standard Spa debuted in 2005 after a renovation spearheaded by hotelier André Balazs, founder of Standard Hotels.
Sternlicht, chairman and CEO of Starwood Capital Group, acquired the Standard Spa in late 2021 for $62 million, owning about 15.4 percent of the property. He is partnering with a notable group of investors for the redevelopment, including Antonio de la Rúa, an Argentine lawyer and former partner of Shakira, and architect Sebastian Sas, who holds 14 percent. Ingels and Nomade People CEO Miguel Isla Esteve each hold 10 percent, while other minority investors include tech billionaire Peter Thiel, biotech investor Jeff Aronin, and former Sprint CEO Marcelo Claure.
The Miami Beach Design Review Board will vote on October 1 to approve various project variances, including those related to side yard setbacks, lot aggregation, and first-floor slab height. According to the developer’s letter of intent, the redevelopment, estimated to cost $61 million, aims to elevate the Standard Hotel into a “wellness-oriented oasis. ”
The plans for the new east wing include a parking garage on the ground floor, hotel rooms on the second and third floors, and luxury residential units with rooftop decks on the upper levels. Sternlicht, who previously led Starwood Hotels & Resorts Worldwide and founded the 1 Hotels brand, invested in the property through his family office, JAWS Estates Capital. Now based in Miami Beach, he resides in a waterfront mansion on North Bay Road, with Starwood Capital Group’s headquarters nearby.
Peter Thiel and Marcelo Claure are also making significant real estate moves in the area. Thiel is developing a waterfront mansion on the Venetian Islands, and Claure is building a new home on North Bay Road.
