UPDATED: MARCH 4, 2016 11:24 AM — A South Korean hospitality group made its first investment in the United States this week via Orlando, paying $26 million on Thursday for the 167-key Embassy Suites Orlando Downtown.
The seven-story, 167-key property was built in 2000, and occupies 0.89 acres at 191 E. Pine St. in downtown near Lake Eola.
The buyer, Paradise America LLC, is an affiliate of Korea-based Paradise Group. The property was purchased free of debt, and Paradise will implement a "significant" Property Improvement Plan (PIP) to bring the hotel up to brand standard, according to Holliday Fenoglio Fowler, L.P. (HFF)in Orlando, whichserved as lone broker on the deal.
The sale price per key of $155,688 tops the average price per key of $54,700 for single asset hotel sales in Greater Orlando last year, and the Orlando Central submarket at $52,100, according to annual market sales analysis from HREC Investment Advisors, which GrowthSpotterexamined on Feb. 10.
No mortgage was registered with Orange County as part of the sale. BayStar Hotel Group has been hired to manage the property.
Paradise Group has grown since 1972 in Korea into one of the country's largest investors in tourism, including hotels, gaming, travel and leisure. The company has also begun expanding into manufacturing and construction, according to its website.