Palm Pavilion sells for $23M, split between buyers

Palm Pavilion Restaurant & Inn has sold for $23 million, closing a deal that was first announced in January.

The sale splits the iconic Clearwater Beach property between two Tampa Bay hospitality groups. St. Petersburg-based Beachside Hospitality Group purchased the restaurant. Tampa-based McKibbon Equities acquired the inn.

Palm Pavilion sits at 10 and 18 Bay Esplanade on Clearwater Beach. Built in 1926, it is recognized as Florida’s oldest operating beach pavilion.

Two buyers, two operations

The sale included an 11,869-square-foot restaurant and a 12,129-square-foot inn with 37 units, along with on-site parking.

Beachside will continue operating the restaurant and plans to rename it Crabby’s Beachside Pavilion. The company said it will retain the existing staff, preserve much of the menu and continue live music.

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McKibbon Hospitality, the management company tied to McKibbon Equities, will operate the inn.

A family-owned landmark changes hands

The property has been owned and operated by the Hamilton family since 1964. Palm Pavilion entered its second generation of family leadership in the 1980s when brothers Ken, Dale, Hoyt and Wade Hamilton took over operations.

“This decision was bittersweet for our family,” said Ken Hamilton, president and managing partner. “We’re grateful to know that Palm Pavilion’s legacy will continue, and we look forward to celebrating its 100th anniversary this May alongside the new owners.”

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The family expanded Palm Pavilion into a full-scale restaurant in the 1990s and opened the Palm Pavilion Inn in 1988. The property has earned repeated recognition as the best beach bar in Visit St. Pete Clearwater’s Best Of awards.

McKibbon expands its Clearwater Beach footprint

McKibbon Hospitality manages hotels, restaurants and short-term rentals nationwide. In Clearwater Beach, the company operates Hampton Inn & Suites Clearwater Beach and Dolphin Sands Clearwater Beach.

Deal team

John Gerlach, Jake Gerlach and Cyndi Cushman of Colliers represented the sellers, which included several Hamilton family entities. Beachside Hospitality Group was represented by John Fahey of SRS Real Estate Partners.

“The Palm Pavilion is one of the most recognizable beachside properties in Florida, and the Hamilton family was very thoughtful about finding a buyer who understood both the legacy of the restaurant and the long-term value of the inn,” said John Gerlach, executive vice president with Colliers. “The buyers have deep experience in the hospitality industry and stood out as the groups with the experience and vision needed to carry this property forward.”