ORLANDO—A Best Western hotel in Orlando has traded hands. A South American investment company purchased the hotel for $11 million.
Tony DeGeorge, president and Ken Olipra, vice president of Greene, Canfield, DeGeorge Hotels represented the seller The duo also secured the buyer.
Built in 1985, Best Western is a 123-room limited service hotel. The hotel is located in the Disney area, and has posted 95% occupancy for three years. The buyer plans to invest about $650,000 in renovations and will retain the Best Western hotel branding.
The seller is a seasoned hotel owner with over 20 years of experience in hotel investment. The firm has been involved in many hotel transactions with various brokers over the years.
Reinvigorated hotel demand drivers will lift occupancy and raise revenue measures by more than the US rate of growth during 2015 in Florida, according to Marcus & Millichap. Developers are increasingly taking notice of the sustained recovery in the state’s hotel sector, the firm reports, but available hotel rooms will rise only modestly this year.
“Higher rates of growth loom after 2015, though, and completions will occur primarily in the state’s largest markets,” M&M says. “However, rooms placed in service in Miami-Dade, Orlando and Tampa during 2014 were well absorbed and helped to meet unsatisfied demand accommodations at specific price points.”
M&M says each of the three markets recorded higher occupancy last year despite an increase in rooms. Although additional demand growth is needed to sustain improvements in occupancy while development gains speed, favorable prospects for increasing occupied rooms persist.
“Businesses in the state are hiring and expanding again, sending workers on the road and providing paid vacation benefits for many newly hired workers,” M&M says. “In addition, homebuilding and home sales are gaining traction throughout the state, lifting room demand related to house-hunting trips to the state.