DSH Hotel Advisors, a national hotel brokerage and advisory firm headquartered in Tampa, has arranged the sale of the recently renovated 117-room Quality Inn Kennedy Space Center by Choice Hotels, located in Titusville, FL for $7.4 million.
The DSH Hotel Advisors team, including Dennis S. Hopper, managing principal and Dylan N. Amin, senior investment associate, represented the seller, Frontier Hospitality LLC, and the buyer, Jay Jagannath Hospitality LLC.
DSH Hotel Advisors held the exclusive listing with the seller, generating 175+ signed confidentiality Agreements from qualified buyers and receiving 14 offers from investors throughout the country and internationally.
The hotel is located directly off Interstate 95 and serves as a hospitality hub for the space center area and beyond to the Cape Canaveral cruise terminal. Recent improvements include an updated lobby, newly painted exterior, new signage, guest mattresses and linens and a resurfaced parking lot.
“The number of investors contacting our team on a daily basis is incredibly high—they want midscale hotels in Florida, and the majority of the investors are securing traditional financing for these assets,” said Hopper. “Inflation has proven to have certain positive impacts for hotel operations—since hotels have the ability to adjust their rates daily, they are able to capitalize on this market dynamic and drive up revenue. One of the downsides to inflation is the recent rise in interest rates, which is causing debt to be more expensive and ultimately less attractive to investors. The recent fallout of Silicon Valley Bank and Signature Bank only seem to add to the complexity of the market dynamics that we are all presently navigating through; however, the demand for hotels in Florida and the Southeast U.S. seem to be as strong as ever.”
“We were able to generate 14 offers throughout the course of marketing the Quality Inn for sale,“ added Amin. “Although interest rates have been on the rise, we are seeing more demand than ever for properties in Florida. With the significant growth in Brevard County, and the cruise port seeing record numbers, we were able to achieve a healthy market-price with plenty of upside remaining for the new owner.”