PGA National in Palm Beach Gardens could sell to London firm in high-priced deal

Article first appeared: https://eu.palmbeachpost.com/story/news/local/pbgardens/2024/11/07/pga-national-could-sell-for-425-million-be-remade-into-luxury-brand/76090444007/

PGA National Resort & Spa in Palm Beach Gardens soon could sell for $425 million, or about $1.3 million per hotel room, according to published reports.

The property reportedly is under contract to Henderson Park, a private equity real estate firm based in London, according to Bloomberg. It’s unclear how quickly the transaction could close.

But the sale marks the latest ownership group of the signature residential community, golf club and resort located on 800 acres off PGA Boulevard west of Florida’s Turnpike.

In 2018, Toronto-based Brookfield Asset Management paid $218 million for the resort and club, then poured more than $100 million into a hotel renovation for the resort’s signature spa, plus upgrades to its restaurants and lobby. Brookfield also boosted its six golf courses before putting the property up for sale in recent months.

If the sale to Henderson Park is completed, management of the hotel reportedly will be handled by the luxury boutique hotel brand Salamander Hotels, led by Sheila Johnson, co-founder of BET.

Representatives from Brookfield and Henderson Park declined to comment.

But Peter Ricci, director of the hospitality and tourism management program in Florida Atlantic University’s College of Business, praised the hotel’s possible upgrade to the Salamander brand.

“Salamander is known for running very fine establishments,” Ricci said.

Jeff Lichtenstein, president of the Echo Fine Properties real estate brokerage in Jupiter, said northern Palm Beach County lacks new and upgraded hotel properties.

A further upgrade to PGA Resort “would do fabulous,” Lichtenstein said. “There’s plenty of demand for upscale hotels, and there are no major hotel developments, especially with golf, like that in the north end. We’re out of land.”

Real estate experts point to the demand for private golf clubs in West Palm Beach and Palm Beach as a key factor in PGA National’s rich price.

PGA National a well-known location, especially in world of golf

Newly renovated lobby of the PGA National Resort & Spa in Palm Beach Gardens. Provided by Adiante Communications.

Adiante Communications

PGA National Resort & Spa already is well known in the golfing world. The resort features five championship golf courses, plus a nine-hole course called The Staple.

The property also is host to the Cognizant Classic Golf Tournament, part of the PGA Tour.

This year, another golf resort attracted seasoned pros as buyers. A team that includes New York-based Witkoff Group and Access Industries took control of the former Banyan Cay Resort & Club in West Palm Beach.

After several years of on-and-off construction, the property slipped into foreclosure, then Chapter 11 bankruptcy, with the project’s lender finally taking control of it in 2023.

Alex Witkoff, co-chief executive of the Witkoff Group of New York, said the golf club was the lure for the Banyan Cay project.

“If you live in Palm Beach island or West Palm Beach, minutes from your home you have a brand-new golf experience,” Witkoff said.

The Banyan Cay Club was renamed Dutchman’s Pipe Golf Club, and initiation fees jumped into the six figures, from $300,000 to $350,000.

Meanwhile, the former Banyan Cay hotel is being completed and will open this year as The Belgrove, a luxury retreat part of the Autograph by Marriott collection.