Superior Homes & Investments LLC of Clermont paid RaniInternational $19.85 million for the 90%-occupied hotel. Twentyprime acres of adjoining net developable land was included in thedeal.

The economic fallout from Sept. 11 and "a suffering hotelmarket" plagued the sale for two years, Susan Morris, senior vicepresident in the Orlando office of Colliers Arnold Commercial RealEstate Services Inc., tells GlobeSt.com.

"After 9/11, the hospitality industry clearly came out with aproven theory that timeshare and hotel/condos were the preferredproduct line of the leisure industry because of their provenability to be less sensitive to the downturns of the market,"Morris says. "The hotel was originally built as a staging area forvacation packages to market timeshare," Morris notes. "We sold offtheir timeshare component but could not market [the entireproperty] on an income basis because it had never been operatedthat way." However, when the market turned, "the big condoconversion craze allowed us to create value in the hotel, as wellas the developable acreage."

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.