$61M Redevelopment of Florida Beach Hotel Planned by Billionaire Barry Sternlicht

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Plans for a $61 million redevelopment of The Standard Spa, a Miami Beach hotel co-owned by billionaire Barry Sternlicht, along with tech magnates Peter Thiel and Marcelo Claure, have been submitted to the city for approval. The proposed redevelopment aims to transform the property, introducing new residential units while reducing the number of guest rooms, and making significant upgrades to the overall structure.

Details of the Redevelopment

The project, located at 40 Island Ave., will be discussed at the Miami Beach Design Review Board meeting on October 1. The plans detail a major overhaul of the hotel’s east and west wings, aiming to modernize the facility and better integrate it with the surrounding Belle Isle neighborhood.

• East Wing Plans: The current structure will be replaced by a five-story building that will house approximately 50 hotel rooms and six luxury residential units, as well as 66 parking spaces. The top floor will feature private rooftop decks for the residential units, with restricted hours to limit disruptions to the neighborhood.
• West Wing Renovation: The number of guest rooms in the west wing will be reduced from 67 to 55, consolidating the spaces to create larger, more modern accommodations. Existing finishes throughout the structure will be upgraded to meet contemporary standards.

Focus on Sustainability and Resilience

The redevelopment emphasizes sustainability and resilience, with plans to raise the east wing above base flood elevation for improved flood protection. Hurricane-resistant windows will be installed, and energy-efficient systemswill be incorporated to reduce the building’s environmental impact.

Additional sustainability features include:

• Native and water-efficient landscaping to preserve local flora and manage water usage.
• Permeable pavement materials to help with stormwater management and reduce heat absorption.
• Passive cooling features designed to minimize energy consumption.
• A recycling and salvage plan for demolition materials to reduce waste.

Ownership and Background

The Standard Spa is co-owned by Barry Sternlicht, the chairman of Starwood Capital Group, who acquired the property in 2021. Other key stakeholders include Peter Thiel and Marcelo Claure, alongside notable figures like Antonio de la Rúa and Sebastian Sas. The hotel is managed by Standard International, a boutique hotel group that operates several high-end properties worldwide.

The redevelopment will not increase the number of hotel rooms, ensuring that the project complies with existing city regulations. The goal is to create a “wellness-oriented oasis” for both residents and hotel guests, with an emphasis on sustainability, community integration, and modern luxury.

Once completed, The Standard Spa will offer an enhanced experience while addressing local concerns such as traffic and environmental impact.