Related Ross seeks $26M sale-leaseback for Palm Beach County Convention Center hotel

Related Ross is moving forward with plans to bring a second hotel to the Palm Beach County Convention Center. 

The development firm, led by billionaire Steve Ross, is seeking a sale-leaseback deal with Palm Beach County, which would allow for the development of a 400-room Hilton Curio on the 1.8-acre site at 900 South Rosemary Avenue, the South Florida Business Journal reported. 

Under the proposed deal, Related Ross would sell the site to Palm Beach County for $26 million, then lease it back for 33 years with the opportunity to extend the lease to up to 99 years. In exchange, the county would receive a guaranteed $1 billion in rent over 99 years, though the property would no longer generate property tax revenue for the city or county, the outlet said. Related Ross would also rent parking spaces in the convention center’s parking garage to serve the Hilton Curio and the existing Hilton West Palm Beach. 

The cost of construction is estimated at $300 million, which Related Ross would be responsible for funding. If the project moves forward, Related Ross would pay $4.5 million in upfront fees. The developer has not yet requested public funds for construction. 

Related Ross won a 2024 request for proposals to build the hotel on the site, which is a parking lot. But the county and developer decided to start over after rising construction costs impacted the initial budget. The latest proposal will need approval from the Palm Beach County Commission as well as an amendment to the development agreement from the first hotel. 

Related Ross completed Hilton West Palm Beach in 2016. The 12-story, 312,000-square-foot hotel includes 400 rooms, 30,000 square feet of event and meeting space, according to Related Ross’ website. Last year, Ross refinanced a $105 million debt on the hotel with a $150 million loan. 

The developer has recently been the subject of debate in West Palm Beach after the city appointed Related Ross executive Jordan Rathlev to the Downtown Development Authority.  Some community members have accused the city of favoring developers and failing to listen to the public, demanding greater transparency and a larger say in the city’s development. 

—Grace McClung

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