Atlanta-based developer Songy Highroads, LLC has acquired two hotels in the Florida Keys village of Islamorada in a joint venture with Washington, D.C.-based The Wardman Group. The purchase marks Songy Highroads’ entry into the high-barrier market.
The first hotel is the Harbor Lights Motel, a 37-room waterfront property located on Windley Key. The property features 625 linear feet of oceanfront, a swimming pool and a one-acre surface parking lot currently used for boat parking.
The second hotel is the Days Inn & Suites Key Islamorada, a 37-room hotel located two miles from Harbor Lights on Upper Matecumbe Key. The hotel features 130 linear feet of oceanfront as well as a marina with 15 boat slips.
“Due to the popularity of the tourism in the area and local ordinances restricting the construction of new hotels, the Florida Keys have the highest RevPAR in the country behind New York City,” Todd Nocerini, COO of Songy Highroads, said in a statement. “These high barriers to entry make these hotels a great acquisition and addition to our portfolio.”
Songy Highroads plans to complete a full renovation of both properties. At Harbor Lights Motel, it will spend approximately $3 million to renovate all guestrooms and the lobby as well as overhaul the property’s landscaping. The property, which will be rebranded to Fisher Inn, will be improved from its current two-star rating to three stars.
The developer will complete a $2 million renovation of the Days Inn & Suites that will include updating guestrooms and landscaping as well as rebranding the hotel and improving it from a two-star to a three-star property. Songy Highroads has hired Aimbridge Hospitality to manage both properties.
“These properties present a great value-added opportunity for us,” Nocerini added. “We are confident our renovation program will pay dividends in the long term.”