A New York-based hotel investment group that sold the Wingate Manhattan in late October for $37.2 million has reinvested those proceeds via 1031 exchange in Orlando, paying $29.35 million on Friday for two local Hampton Inns.
Staten Island-based Ocean King LLC, managed by restaurateurs Simon and Lisa Lou, sold that Manhattan property after buying the land for $2.6 million in 2003 and investing $20 million to build the hotel in 2005.
Family member Hok Kit Lou formed affiliate OK Airport LLC in early April in Florida, and then paid $15.25 million for the Hampton Inn Orlando-International Airport at 5767 T.G. Lee Blvd., near Orlando International Airport. The buyer paid roughly $123,983 for each of the 123 keys.
The family also formed affiliate OK Universal LLC, which paid $14.1 million for the Hampton Inn Universal South at 7110 S. Kirkman Road, a block from Wet 'n Wild and the International Drive intersection. The buyer's price for each of the 170 keys was at least $82,941.
Both buyer LLCs acquired a joint loan worth $21.05 million from Wells Fargo Bank, according to filings with Orange County.
Concord Hospitality was brought on within the past week to manage both properties, two of five the company now manages in Greater Orlando.
Members of the Lou family did not return calls seeking comment on Monday.
The seller was Greenville, South Carolina-based JHM Hotels, which owned and operated the two hotels for 16 and 25 years, respectively, and felt it was time to sell, said M.P. Rama, COO with JHM.
With the these two recent sales, JHM and its affilliate LLCs now own and operate eight hotels in the Greater Orlando market, most of them concentrated near Orlando International Airport.
"The proceeds will be invested in some other projects we'll do," Rama said Monday. "We don't have intentions to reinvest (in new acquisitions) for a 1031 exchange."
Rama told GrowthSpotter in February the company was talking with franchisors Marriott and Hilton for select service flags it could apply to two new hotel properties on undeveloped land it owns in the heart of International Drive, near Pointe Orlando.