Tampa-based developer HG Management sold the Fairfield Inn & Suites near the University of Central Florida in Orlando to Lodgco Hospitality. Hunter and Leo Reilly, investment specialists in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, HG Management and procured the buyer, Lodgco Hospitality, based in Grand Rapids, Mich., with a growing presence in Florida.
The 112-room hotel, constructed in 2016, sold for $21,250,000 or $189,732 per room. The buyer anticipates their post-closing PIP renovation to cost approximately $1,900,000.
“This sale is a prime example of how stable hotels in strong submarkets with robust demand drivers have retained value in 2023, particularly in Florida. Despite challenges with debt, insurance and general uncertainty, this hotel gained value from 2022 to 2023,” Robert Hunter, senior vice president, said in a statement.
“College markets are perceived to be downturn resistant, and the buyer is confident in their ability to capitalize on the growth of UCF and build on the stability established by the management of Naples Hotel Group,” added Hunter.
The five-story hotel is situated 1.5 miles from the University of Central Florida. It is also strategically positioned near major demand generators, including Universal Studios, Walt Disney World Resort and the Orlando International Premium Outlets.