Kabani Hotel Group has facilitated the sale of the 59-room Extended Stay Pensacola for roughly $53,390 per key. Other terms and conditions were not disclosed.
While financial terms of the transaction were not disclosed, the sale price represented a 4.71 time multiple of projected 2025 room revenue and a projected 2025 cap rate of 5.01 percent. The buyer plans to convert the Florida property into a Suburban Studios hotel under the Choice Hotels brand as part of a value-add repositioning strategy.
The two-story, interior-corridor hotel sits on approximately 1.02 acres and features guestrooms with kitchenettes equipped with a stovetop, refrigerator, sink and microwave. The property underwent renovations in 2021 and 2022. Located near Interstate 10, the hotel is close to several demand generators, including Pensacola International Airport, Naval Air Station Pensacola, the University of West Florida, Pensacola Beach and the Port of Pensacola.
The transaction was handled by Lucas Mondino, partner, and Ahmed Kabani, founder and CEO, of Miami-based Kabani Hotel Group.
“This transaction highlights the continued demand for extended-stay hotels that offer investors a clear value-add opportunity,” Mondino said in a statement. “The buyer recognized the upside in converting the property into a nationally branded extended-stay product, while benefiting from the asset's existing room configuration and strategic location.”