VIRGINIA BEACH-This beach resort will be a significant focus of Best Rate Travel, Inc.’s new hotel and operating subsidiary, Best Rate Hotels Inc. The Boca Raton, FL-based firm is entering the development arena, CEO Adrian Stone tells GlobeSt.com, with $100 million of debt financing.

It has inked its first deal already with REIT One Inc. to build a $150-million, 268-room resort here. Best Rate Hotels is currently negotiating with Starwood Hotels to manage the property, and will own 20% of the property.

Best Rate Hotel will be contributing $30 million to the transaction, the company reported in a press release. That will leave an additional $70 million in financing to be invested between the Virginia Beach and Florida markets in the immediate term. Best Rate is planning to partner with equity providers in other transactions, although Stone would not provide the leverage percentage they might contribute. “It could range across the board and in some cases we might be 100% responsible for the note,” he says.

The company is getting set to make a second announcement within a week, Stone adds, although he will not say which market it is in and if it will be another development deal or an acquisition, which the company is also willing to consider. All told, it is planning five transactions in the immediate term, two of which will be in Virginia Beach.

The firm has focused on Virginia Beach because it likes the demographics there, Stone says. “It is a great market for tourism.” The company is targeting the higher end market, focusing mainly on the Starwood brands, such as Hilton and Four Seasons.

Vikram Antin, an associate with Marcus & Millichap, tells GlobeSt.com that Virginia Beach has been an underperforming market for some time but has improved over the last year. “There has been an increase in RevPAR. That is probably what is attracting them to this market.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2023 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.

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.