DoveHill Capital Management has acquired a fee simple interest in the 221-key DoubleTree Deerfield Beach-Boca Raton in Deerfield Beach, FL.
“This acquisition marks our eighth investment since 2020 and…our fourth South Florida property,” said Jake Wurzak, CEO, DoveHill Capital Management. “The hotel was acquired at a favorable entry point at a discount to recently consummated transactions in the market. We plan to upgrade the hotel’s management and engage in capital projects to enhance the guest experience including the pool, food and beverage outlets and the fitness center. The Boca Raton submarket is an incredibly high barrier-to-entry market with demand tailwinds which I believe will only strengthen.”
The hotel will be operated by DoveHill’s associated management company, The Wurzak Hotel Group under a franchise agreement with Hilton. It has benefited from more than $15 million ($68K/key) in capital improvements since 2015. The company plans to spend additional capital to enhance the property with a focus on the public areas and will include the addition of a new bar adjacent to the upgraded pool.
In addition to the immediate operational upside, DoveHill will also explore future development opportunities on vacant portions of the 6.2-acre site.
Charles Paloux, EVP investments, added, “The mix of demand in the South Florida Palm Beach-Miami corridor is unprecedented, well beyond the demand boost that COVID created. South Florida has permanently shifted post-COVID, and we remain incredibly bullish on this market. The property has already experienced a post-COVID spike in occupancy due to the rapid rebound of leisure travel to South Florida. As business travel returns, the hotel is set to benefit from both areas of demand.”