Delray Beach-based Hudson Holdings paid $6 million last Friday to acquire the 403-room HomeSuiteHome hotel in Kissimmee's US 192 tourism corridor. The company plans to invest $36 million in a complete renovation later this year and is actively seeking more properties in Greater Orlando, one of its principals told GrowthSpotter.
"We believe 192 is the future growth corridor for hospitality in the Greater Orlando market," said Andrew Greenbaum. "We think this is one of the underdeveloped gem sites and expect to see more development in the immediate area." It is located at 5565 West US 192.
Hudson Holdings will redevelop what is currently a 403-room motel with exterior corridors into an all-suite property with 200-plus rooms and interior corridors. Average room sizes now are 334 square feet, but will be 668 square feet after renovation.
The expansion project will include a conference facility with convention space, 40,000 square feet of retail space and a pad of land for expansion, according to the developer.
"This is on a great piece of land, has good bones for us to do a conversion, and the fact it is a multi-story property and not just two stories was key," Greenbaum said.
The company has a deal tentatively in place with a large national hospitality brand to become the new flag of the property, though Greenbaum declined to confirm which one. The hotel will receive an overall upgrade to full-service level amenities, he said.
Greenbaum expects Hudson to start renovation of the property in four to six months. The company is still seeking an architect, and would favor a mid-sized regional firm with hospitality experience. A civil engineer has been chosen, but the contract is not finalized, he added.
The projected $36 million investment will be financed by a combination of equity and commercial loan, for which Hudson is still talking with multiple lenders.
With its other hotel properties clustered in South Florida, Hudson likes to acquire multiple properties with value-add potential in the same market, Greenbaum said. The company will continue looking for hotels in Greater Orlando it can acquire for redevelopment.