AD1 Global buys two more Orlando hotels as part of multi-state acquisition

Hollywood-based AD1 Global paid $16 million last week for the 139-room Fairfield Inn Orlando Airport.
Hollywood-based AD1 Global paid $16 million last week for the 139-room Fairfield Inn Orlando Airport.(AD1 Global)

Fast-growing AD1 Global is ending its 2018 with a multi-state hotel portfolio buy that includes a pair of Marriott flags in Orlando for a combined $35.5 million.

The Hollywood-based hotel owner-operator purchased the 170-room Fairfield Inn & Suites Orlando-Lake Buena Vista for $19.5 million and the 139-room Fairfield Inn Orlando Airport for $16 million. Both hotels were built in 1998 and had just undergone complete renovations.


"They're obviously very good brands," AD1 CFO Alex Fridzon told GrowthSpotter. "They're performing well. We think we can come in our teams and have them perform even better with more efficiency."

Wells Fargo provided $27.8 million in financing for the Orlando assets.

The 170-room Fairfield Inn & Suites Lake Buena Vista, also a part of the sale to AD1 Global, had recently been renovated.
The 170-room Fairfield Inn & Suites Lake Buena Vista, also a part of the sale to AD1 Global, had recently been renovated.(AD1 Global)

Also included in the Dec. 13 sale were a Courtyard by Marriott in the Charlotte/Gastonia market and two Hilton properties, DoubleTree and Hampton Inn, in Atlanta's North Druid Hills neighborhood. The combined purchase price of all five properties was $92.5 million.

The seller was Lingerfelt Commonwealth Partners, a Richmond, Virginia-based commercial real estate investment firm that has purchased the assets three years ago for $68.5 million.

J. Ryan Lingerfelt, President and Chief Investment Officer of Lingerfelt Commonwealth, said the company invested $8.5 million on property improvements.

After spending more than $33 million last year to buy two Disney area hotels, Hollywood-based AD1 Global is now converting them from Choice brands to IHG flags.

"Over the last several years, Commonwealth Lodging successfully implemented our strategic renovation and repositioning plan, resulting in significant long-term improvement to average daily rates, guest satisfaction ratings, and average occupancy," Lingerfelt said. "This is an opportune time to sell this portfolio and we are excited to deliver exceptional value to our investors."

AD1 manages all of its hotels, and the company recently opened a satillite office here to manage its seven Orlando-area properties. That includes two hotels which are undergoing major renovations and rebranding to IHG flags.

AD1 owns a total of 20 hotels across the Southeast.


Insight on the flags chosen for this dual-brand property, and progress on a neighboring development for which a GC and architect have yet to be picked.

"The company has been growing by leaps and bounds," Marketing Director Jon McMillian said. "We've doubled the size of our portfolio year-over-year."

Fridzon said AD1 is looking to maintain its aggressive growth strategy in 2019, with a target of 12 more acquisitions in its key markets. That doesn't the count the properties in various stages of development.

AD1 currently has hotels under construction in Melbourne and Palm Bay that may be delivered in late 2019. The company is also in horizontal development and will pull building permits early next year on a dual-branded Aloft and Element by Westin on International Drive, near SeaWorld.

The company is awaiting permit approvals from the U.S. Army Corps of Engineers for a hotel trio with shared waterpark on 57-plus acres in the Four Corners area of Orange County. The group has Holiday Inn Express and Staybridge Suites approved as flags from IHG, and Four Points by Sheraton as the third flag.

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