A Denver-based hotel investor paid a recorded $6.7 million earlier this month to enter the Orlando market, buying a 141-key Days Inn near The Florida Mall.
Located at 9301 S. Orange Blossom Trail, the 5.29-acre parcel lies at an intersection with the Florida Turnpike, and features a two-story exterior corridor hotel built in 1972.
The buyer was an affiliate LLC of Khurshid Khan, a native of Pakistan now based in Denver who has owned four limited service hotels previously in the western United States.
Khan told GrowthSpotter he was drawn to invest in Orlando because of its tourism numbers, and the different demographic that offers from his Denver assets.
He plans to manage the Orlando property and split time between the two markets in the near future. Interior upgrades will be needed at the Days Inn, but Khan said he has yet to fully evaluate the property.
The sale closed on May 1 and was recorded Wednesday in Orange County. The deed taxes reflect a sale value of $47,517 per key, which is accurate to the total sale without deferred FF&E value, according to listing agent Kent Hricko of Marcus & Millichap.
The seller was Du-Pan Lights Hotels LLC, an investment vehicle for Colombian investors that were absentee owners, which previously paid more than $5.489 million in November 2006.
The listing was active for a month before going under contract in March and closing 45 days later, Hricko said.
Marketing materials for the property highlighted an average daily rate of $53 and RevPar of $41, with average occupancy of 77 percent at time of sale.
The buyer sourced a $5.36 million mortgage from the seller to help close the deal.