The RADCO Companies has acquired three new hotels in the Gulf of Mexico resort community of Panama City Beach, FL. The properties add 281 new Marriott and Hilton rooms to the company’s hospitality division. Additional terms of the deal were not disclosed.
They include a Home2 Suites, adjacent Fairfield Inn & Suites, and a Hampton Inn. All three hotels will be managed by LBA Hospitality. Hospitality Real Estate Counselors (HREC) served as brokers for the Home2 Suites and Fairfield Inn properties, with Hunter Hotel Advisors brokering the Hampton Inn deal.
RADCO launched a new hotel division in early 2021 in response to the COVID-19 pandemic’s operational and capital markets disruptions in the hospitality sector. RADCO is actively seeking out hospitality assets that are in line with the company’s overall opportunistic investment strategy, according to CEO Norman Radow.
“Select-service and extended-stay hospitality assets in the Southeast have proven very resilient despite numerous challenges facing the sector,” he said. “They have maintained strong performance over the past 18 months, and we see a lot of upside potential as these robust leisure and growth markets continue to rebound from the pandemic.”
Bhavnesh Vivek, VP, hotel acquisitions, RADCO, added, “RADCO sees tremendous opportunities in the hospitality sector and anticipates adding several more hotel assets to our portfolio in the coming months.”
One of the properties RADCO has acquired opened in 2021, while the other two will require minor renovations. As part of its value-add strategy, RADCO plans to make additional capital and operational improvements to each of the properties.