Hotel Online  Special Report

Fortune International and Sonesta Finalize Deal to
Develop Five-Star Condominium Hotel
in Key Biscayne
The Current Sonesta Beach Hotel Resort
Will be Demolished in Fall 2006
KEY BISCAYNE, Fla.- April 20, 2005 -- Fortune International, a leading Miami-based real estate development and brokerage firm, and Sonesta International Hotels Corporation (NASDAQ:SNSTA - News), a Boston-based operator of upscale hotels, announced today that they have closed on the purchase of the Sonesta Beach Resort in Key Biscayne. According to Edgardo Defortuna, president and CEO of Fortune International, the joint venture partnership will develop an ultra-luxury, five-star condominium resort on the beachfront site.

The Sonesta transaction completes Fortune's fifth major hospitality brand affiliation, enhancing the firm's leadership position in the region in the development and marketing of condominium hotels.

"The Sonesta Beach Resort location is a stunning piece of property - one that is unrivaled in South Florida, or anywhere in the U.S., for that matter," said Defortuna.

Pursuant to the $120 million transaction, Fortune paid Sonesta $30 million in cash at closing, and an existing $30 million mortgage loan on the hotel was discharged. Sonesta also receives a 50 percent joint venture partnership interest, and will receive $60 million of net condominium sales proceeds after repayment of construction debt.

Sonesta Beach Resort
350 Ocean Drive
Key Biscayne, Florida
Construction on the $400 million development is expected to commence in late 2006, with completion slated for 2008. Pre-construction sales for the 300-plus condominium hotel units and residences will begin in late 2005.

The current Sonesta Beach Hotel Resort will continue to operate through summer 2006, at which time it will be demolished, making way for the new five-star luxury resort residential project, to be developed by Fortune and managed by Sonesta International.

"Sonesta International and Fortune share a similar vision for this property - to create one of the most luxurious condominium hotel resorts in the Western Hemisphere," said Roger Sonnabend, executive chairman of Sonesta International Hotels Corporation. "The new resort we are creating with Fortune will establish Sonesta as an operator of 5-plus star, super luxury hotels, and will open a new universe of management opportunities for our company."

Located directly on the ocean, the new development will be designed with fine living in mind, featuring oversized guest rooms, expansive terraces, kitchens fully-equipped with state-of-the-art appliances, oceanfront pools, a full-service spa & fitness center, technologically advanced meeting centers, restaurants, family entertainment and more.

After making its name in high-end international brokerage, and then luxury residential developments, Fortune International ventured into the hospitality arena in 2003, quickly forging joint venture partnerships with global leaders in the hospitality industry. Today, Fortune enjoys a leadership position in South Florida's burgeoning condominium hotel market, and is currently developing and/or marketing the following projects: Ritz Carlton Residences Miami Beach, Le Meridien Sunny Isles Beach, The Residences at Wyndham Resort and Golden Door Spa Weston, Gallery One Resort Residences-Fort Lauderdale and now Sonesta.

"With extensive knowledge of five-star hotel services and trends, Fortune International's hospitality division designs, develops and operates properties with a trademark excellence for which all of Fortune's real estate ventures are recognized," said Alejandro Aparicio, vice president of hospitality at Fortune International. "Alliances with prestigious hotel-, restaurant-, and spa-operating companies have accelerated Fortune's position as major player in the travel and leisure industry."


Fortune International

Sonesta International Hotels Corporation

Also See: The 294 room Sonesta Beach Resort on Key Biscayne to be Demolished; $300 million Condo-Hotel Planned on Site / January 2005

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