A top Related Cos. executive confirmed last week that the New York-based company is increasingly likely to build another hotel next to its new Hilton West Palm Beach at the Palm Beach County Convention Center.
Ken Himmel said Related has been happily surprised by the success of the Hilton, which celebrated its first anniversary last month. The Hilton is at 600 Okeechobee Blvd.
The hotel logged room rates of $270 per night in January, higher than an expected rate of $230. “We made six months worth of profits in January. It’s unbelievable,” said Himmel, president of Related Urban, the mixed-use unit of Related Cos., which developed CityPlace and the Hilton hotel.
Hotel occupancy was 88 percent in January, Himmel added. The hotel “beat every one of our budgets, both occupancy and rates the first year,” Himmel said.
In addition, the convention center is enjoying an unprecedented surge in business thanks to finally having a hotel next door for conventiongoers.
“The convention center has tripled its bookings going forward,” Himmel said.
Those numbers are leading Himmel and other top Related executives to consider adding another 200 rooms on an adjacent parking lot.
It’s a big commitment, but Related is feeling upbeat about the city.
“We have every reason to believe that keeping our investment profile high (in West Palm Beach) is going to make a lot of sense,” Himmel said.
That hotel, which could be a boutique Hilton brand such as the Curio Collection, would share the Hilton’s amenities, including the pool and facilities.
A final decision is expected to be made by year’s end, with a new hotel possible built by the end of 2019, he said.
Himmel said the Hilton has experienced an unexpected boost to its business: Bookings by the media in town to cover President Donald Trump when he visits his part-time Palm Beach home, Mar-a-Lago.
But having Trump in town hasn’t just been good for Hilton and Related. Himmel said reporters are spending money around Palm Beach and West Palm Beach, too.