Marcus & Millichap, a commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, has revealed the sale of a Fairfield Inn & Suites near the University of Central Florida in Orlando. The 112-room hotel, constructed in 2016, sold for $21.25 million, or $189,732 per room. The buyer anticipates their post-closing PIP renovation to cost approximately $1.9 million.
Robert S. Hunter, SVP, and Leo Reilly, investment specialist, in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, HG Management, a Tampa-based developer, and procured the buyer, Lodgco Hospitality, based in Grand Rapids, MI.
“This sale is a prime example of how stable hotels in strong submarkets with robust demand drivers have retained value in 2023, particularly in Florida,” said Hunter. “Despite challenges with debt, insurance and general uncertainty, this hotel gained value from 2022 to 2023. College markets are perceived to be downturn resistant, and the buyer is confident in their ability to capitalize on the growth of UCF and build on the stability established by the management of Naples Hotel Group.”
The five-story hotel is located 1.5 miles from the University of Central Florida. It is also near major demand generators, including Universal Studios, Walt Disney World Resort and the Orlando International Premium Outlets.
