Dimension Development Co. Inc. of Natchitoches, LA, headed by Sam J. Friedman, will manage the hotel. The acquisition is "part of a strategic relationship we have formed with Dimension Development for the purpose of acquiring and developing hotels throughout the United States," Innkeepers CEO and president Jeffrey H. Fisher says in a prepared statement.

Four Points by Sheraton is Innkeepers' first beachfront resort acquisition. "The property enjoys strong current cash flows, high barriers to entry for competition and is surrounded by a diversified mix of demand generators," Fisher says. He didn't disclose the hotel's current occupancy level but says the purchase was made largely because of the property's strong demographics.

"After Orlando, Fort Walton Beach is the most popular drive-to market in Florida, with 92% of visitors to Okaloosa County traveling by car," Fisher says. The hotel is also located within eight miles of Eglin Air Force Base, one of the largest military bases in the US. "The dual impact of the military and tourism on Okaloosa County has led to a stable and growing economy and, by extension, a strong hotel market," says the Innkeepers' chief executive.

Peter M. Willis, Innkeepers' vice president of development, says his company is scouting for additional hotel acquisitions, "including upscale extended stay and premium limited service brands, the core of the company's portfolio, selected full-service properties, turnaround opportunities and hotels that are affiliated with, or have the potential to be converted to the industry's top brands."

The REIT owns 67 hotels with a total 8,131 suites or rooms in 21 states. Willis says his company "focuses on acquiring and/or developing Residence Inns by Marriott and other upscale extended-stay hotels, and the rebranding and repositioning of other hotel properties."