Shrager to Buy Interest in the Shore Club

Delano Hotel owner Ian Schrager is in the final stage of talks to manage and become an equity owner in Miami Beach`s exclusive Shore Club, reported The Miami Herald.

Delano Hotel owner Ian Schrager is in the final stage of talks to manage and become an equity owner in Miami Beach`s exclusive Shore Club, reported The Miami Herald.

The agreement, expected to be signed in coming days, would give Schrager control of two of the most talked about hotel properties in South Beach, and rekindle a once-soured business partnership between Schrager and Shore Club owner Philip Pilevsky. Desiree Gruber, spokeswoman for Schrager, and Paul Wilmot, spokesman for Pilevsky, both declined to comment, but sources on both sides confirmed that negotiations are in the final stages. Under the proposed agreement, Schrager Hotels would buy a minority share of the $150-million plus, 325-room Shore Club and manage it, said the paper.


A Delano-Shore Club partnership would give Schrager even greater clout in the competitive South Beach market, giving him control of two South Beach properties that have competed head-to-head for the luxury market. “With (the Delano`s) 218 rooms, they`re turning away business a lot,” said Scott Berman, an analyst with PricewaterhouseCoopers. “If the deal were to go through, they`ve got a facility that is in the same block and the economy of across-the-board manpower and services.”  Rumours that a portion of the Shore Club was up for sale have picked up heat in recent weeks, with suitors like W Hotels and Hilton reportedly vying for partial ownership, according to industry sources. The Shore Club is managed by Philips Hotel Group, Pilevsky`s hospitality company.


——-

ADVERTISEMENT