Sternlicht‑Led Team Withdraws Rezoning Request for Standard Miami Beach Hotel

Key Points

• Barry Sternlicht and partners have withdrawn their zoning change request for The Standard Spa, Miami Beach.

• The plan included a five-story addition with 50 hotel rooms, six luxury condos, and 66 parking spaces.

• The move follows public scrutiny of a $1.2 million agreement with a local residents association.

Project Overview and Development Team

The Standard Spa, located at 40 Island Avenue on Belle Isle, was acquired in 2022 by Nomade Lido, a company affiliated with Starwood Capital. Barry Sternlicht owns a 15.4 percent stake in the project. Other key investors include architect Bjarke Ingels, Antonio de la Rua, Sebastian Sas, and Miguel Isla, who serves as managing partner. Minority investors include Peter Thiel, Jeff Aronin, Martin Franklin, and Marcelo Claure.

The redevelopment proposal required zoning changes to allow a hotel and residential hybrid model not currently permitted under existing regulations.

Scope of the Redevelopment Proposal

The plan submitted to the city proposed:

• Demolishing the hotel’s east wing and constructing a new five-story structure with 50 hotel rooms, six condominiums, and 66 parking spaces

• Renovating the existing west wing and reducing the total guest room count from 67 to 50

• Incorporating resiliency features such as flood elevation, hurricane-resistant windows, and sustainable landscaping

The project design was led by Kobi Karp Architecture and Bjarke Ingels Group.

Agreement With Residents Association and Ethics Concerns

In July 2024, Nomade Lido entered into a $1.2 million agreement with the Belle Isle Residents Association (BIRA), structured as three payments for public improvements to Belle Isle in exchange for BIRA’s support of the project.

The agreement became public in a city filing in late September 2024, leading to criticism over transparency and potential ethical implications. Miami Beach Commissioner David Suarez raised concerns that the arrangement may have violated the city’s ethics code, which prohibits entities from accepting payments tied to influencing governmental decisions.

The Miami-Dade Commission on Ethics issued instructional letters to some BIRA board members for failing to disclose communications with city commissioners. The commission noted it lacked enforcement authority over contingency fee arrangements involving associations.

Project Withdrawal and Developer Response

Ahead of a scheduled vote on September 16, the ownership group formally requested the item be withdrawn from the Miami Beach City Commission agenda.

Commissioner Suarez stated that increased resident engagement and public scrutiny led to the developer's decision to pause the application. In response, Miguel Isla, CEO of Nomade People and managing partner of The Standard Spa, criticized what he described as personal attacks and misinformation campaigns. He stated that the development team would pursue the project through other means, with a revised approach.

Looking Ahead

The team behind the Standard Spa has indicated a willingness to revisit the proposal in the future. Any renewed effort may include adjustments to scale, use mix, or community engagement strategy to align more closely with neighborhood expectations and evolving city requirements.

For developers and investors, the situation highlights the increasing role of governance, disclosure, and public sentiment in urban redevelopment, especially when residential and hospitality uses intersect in established communities.