Hollywood, Fla.-based hotel investment group AD1 Global has bought the Best Western International Drive for an estimated $10.8 million, plans extensive renovations and is seeking a general contractor, the company’s vice president of acquisitions told GrowthSpotter.
Located at 8222 Jamaican Ct., the hotel lies on the corner with International Drive just 500 yards south of the I-Drive intersection with Sand Lake Road. The site was previously owned by Sun Vista Hotels LLC, which bought it in August 2009 for $3.6 million.
Large-scale property redevelopment in the heart of I-Drive, including Wallack Holding’s Mango’s Tropical Cafe and Skyplex entertainment complex, drew AD1 to stake its claim on a hotel in Orlando’s tourism corridor, said Gisela Levy, VP of acquisitions.
“All the new projects in development make that area very attractive,” she said. “We know the Orlando tourism market is only going to keep growing at the same pace it has shown.”
AD1 plans to maintain the Best Western flag for the property and has its own management company taking over operations. Levy couldn’t estimate how much the company is investing in renovations, but said AD1 is pursuing contractor candidates to carry out significant updates.
AD1 now owns four hotels overall, all in Florida. They include Park Inn by Radisson Orlando-Celebration, another in Kissimmee and one in Hollywood Beach, all operated by AD1 Management.
Built in 1985 and now with 121 rooms, the Best Western International Drive’s estimated sale price of $10.8 million (or $89,256 per key) is based on deed taxes paid to the county. The sale price could be higher, because it doesn’t include the value of furniture and other assets within the hotel. AD1 declined to confirm the acquisition price.
Along with an expected sale of the CoCo Key Water Resort on North I-Drive, the Best Western sale is just the latest in a growing number of sales this year of older, mid-level hotel properties in the I-Drive corridor.
I-Drive hotel deals in recent months include:
Wow Resort, a 334-room hotel property on W. Sand Lake Road two blocks east of International Drive. It was sold in April for $11.2 million and the owner began up to $3 million in renovations in May.
Doubletree by Hilton Orlando at SeaWorld. New York-based investment firm AWH Partners bought the hotel on May 19 for more than $54 million and will invest $30 million in renovations over the next 18 months.
Four Points by Sheraton Orlando Studio City. Indianapolis-based Hotel Capital bought the 301-room hotel on North International Drive in late June for an estimated $14.8 million and plans a multi-year renovation effort.
Greater Orlando is on pace this year for more than $2 billion in hotel property transactions, GrowthSpotter reported in mid-June.
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