The Raleigh Hotel on Miami Beach has always had a certain allure, like a faded movie star from the golden age of Hollywood, with its Art Deco charm whispering stories of bygone glamour. But its recent chapter has been anything but a smooth romance. Picture this: a $1 billion transformation promised under the helm of Michael Shvo and those infamous Alexander brothers—who, as it turns out, are now facing trial in New York for some truly horrifying allegations of sexual assault. It’s the kind of plot twist that makes you question everything. Shvo and the Alexanders are out, their grandiose plans stalled like a yacht becalmed in a storm. Enter Nahla Capital, a New York-based firm led by the ambitious Genghis Hadi, who scooped up the three-acre site for a cool $270 million back in October. They’re not starting from scratch, but they’re bringing fresh energy to what was supposed to be a luxurious rebirth: a Rosewood-branded hotel mingling with some of South Beach’s priciest residences. Compass has stepped in to relaunch sales, and honestly, it’s a relief—the old team was mired in controversy that made potential buyers skittish.
What’s stayed constant in this Miami Beach saga is Rosewood’s commitment, and that’s a big win. The brand, known for its opulent touch, will still oversee the residences and manage the hotel. “We are working closely with our partners to bring to life an exceptional experience across the hotel and residences,” a Rosewood spokesperson shared in an email, echoing that classic Rosewood elegance we’ve seen in places like their Beverly Hills property. Nahla’s Hadi has experience with Rosewood Residences there— a 17-unit success story—that gives him street cred in this high-stakes game. As for the sales force, it’s a powerhouse led by Compass’s Development Marketing Group: pros like Miltiadis Kastanis, Pablo Alfaro, Ivan Chorney, Michael Martirena, and Liz Hogan. Hadi praised them for their global reach and discretion, saying they’re perfect for navigating the exclusivity of a spot as legendary as the Raleigh. You can almost imagine the team huddling over blueprints, plotting how to sell dreams of sun-soaked luxury while tiptoeing around the property’s storied past.
But let’s talk about the bumps in the road—no redevelopment is without its dramas. The star architect, Peter Marino, that visionary starchitect known for his meticulous, sophisticated designs, was originally tapped to overhaul the entire site, including a towering 17-story addition with 40 residences. Inside sources rave about his work: “Peter’s design is sophisticated and detailed. You can’t do a half-ass Peter Marino building—you are either all in or out.” Yet, Marino pulled out, sparking a $10 million lawsuit that adds tension to the Miami heat. The architects of record, Miami’s Kobi Karp Architecture, are sticking around, their phones presumably ringing off the hook, though they didn’t respond to inquiries. Navigating this architectural shuffle requires more than just blueprints; Nahla will need approval from Miami’s Historic Preservation Board for any tweaks to the new tower, remassing of the rooftops, or landscaping on the vast compound. The same scrutiny applies to ground-floor renovations of the Art Deco elements across the Raleigh and its sister hotels to the south—The Richmond and the South Seas—which are now slated for integration. It’s like restoring a classic car; one wrong move, and you ruin the vintage appeal.
Despite the hurdles, the vision for the Nahla Raleigh is shimmering on the horizon, blending old-world charm with cutting-edge indulgence. Imagine about 60 swanky rooms and suites, paired with lavish overhauls of iconic spots like the Martini Bar and the Tiger Room, where cocktails and conversations could flow as effortlessly as the ocean breeze. With over 215 feet of prime South Beach oceanfront, there’s still room for a Raleigh Beach Club—a private members’ haven for beachfront dining that was initially greenlit under Tommy Hilfiger’s ownership back in 2014, but got derailed by Hurricane Irma’s fury in 2017. Originally, Shvo had teamed up with Italy’s famed Langosteria to run it, but sources suggest they’re out, leaving the door open for Nahla to court world-class restaurateurs. Polymarket odds might even let you bet on who lands the gig—excitement builds like a tropical storm. The separate condo tower, destined to house the Rosewood Residences, would feature an opulent fitness center and a private entrance to Rosewood’s Asaya Spa, complete with a stunning Hammam for those ancient therapies that melt away the stresses of millionaire life.
Diving deeper into the fantasy, picture five private villas sprouting behind the Art Deco facade of The Richmond Hotel, transforming it into an enclave of seclusion, while The South Seas is reborn as a premium restaurant—perhaps serving up seafood under the palms, with views that could inspire poetry. And let’s not forget the pools: the beachfront ones at the smaller hotels getting a spa-like polish, and the Raleigh’s iconic, curvy fleur-de-lis-like pool, a star on the cover of Life magazine and in films like “The Birdcage,” “Bad Boys,” and “Up Close and Personal,” ready for its restoration. Originally announced in late 2020, these residences ranged from spacious 2,000-square-foot units with 10-foot-high ceilings (Marino’s non-negotiable demand) up to a jaw-dropping 8,000-square-foot home, starting around $10 million. The crown jewel? A 13,000-square-foot rooftop house with its own pool and outdoor kitchen, eyeing $150 million—though sluggish sales under the old regime highlighted the challenges: high prices, bold designs clashing with competition, and those swirling allegations against the Alexander brothers that tainted the pitch.
As Miami’s real estate scene evolves, the next architect stepping into Marino’s shoes might dial back the avant-garde for broader appeal, making the Raleigh’s next chapter more accessible to the masses of millionaires eyeing South Beach. With so few details nailed down, the Compass team has a mountain to climb, but they’re undaunted. Broker Kastanis puts it aptly: “Our focus was on ensuring the ownership team had a partner capable of delivering not only results, but a vision aligned with The Raleigh’s global stature. For a property as iconic as The Raleigh, execution matters at every level.” It’s a reminder that while the Raleigh has weathered storms—literally and figuratively—its rebirth under Nahla and Rosewood could recapture the magic of Miami’s yesteryears, turning a historic gem into a beacon of modern luxury. Who knows? In this tale of ambition and reinvention, the Raleigh might just live forever, its oceanfront saga far from over.
