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Hotels & Hospitality Development News in Central Florida

Updated: Tennessee-based hotelier pays $27.75M for Celebration hotel

Vision Hospitality Group paid nearly $20 million for the 115-key Bohemian Hotel in downtown Celebration.

Chattanooga-based Vision Hospitality Group has entered the Florida market this month with the $27.75 million acquisition of the Bohemian Hotel Celebration, a Marriott Autograph Collection hotel in the heart of the Disney master-planned community.

Founded by Mitch Patel in 1997, the company has built its portfolio to more than 40 nationally branded hotels across eight states. This will be the company’s second Autograph Collection by Marriott hotel following The Edwin Hotel in downtown Chattanooga, which opened in 2018.

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Spencer Blake, digital marketing manager for VHG, said the company was drawn to the Bohemian because it fits well with their other boutique hotels.

“We’ve had our eye on several properties in Florida, but this is the first we have felt really confident about,” Blake said. “The property itself is so iconic and such a big part of the Celebration community that we just knew it would be a success.”

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The hotel is within walking distance to Celebration's downtown shopping and dining district along Market Street.

The 115-key Bohemian was built in 1999 as part of the Kessler Collection and was acquired in 2013 by Inland American Real Estate Trust for $17.5 million. Inland later spun off its hospitality assets into a separate, publicly traded REIT called Xenia Hotels & Resorts. Xenia also owns the Grand Bohemian Hotel in downtown Orlando, which is being fully renovated this year.

Todd Ratliff, Managing Director in the Hospitality Investment Advisory practice at Hodges Ward Elliott, led the marketing and brokered the sale on behalf of Xenia.

American Momentum Bank provided $25.6 million in financing to Vision for the acquisition.

The price reflected in the deed amounted to $19.5 million, but Xenia CEO Marcel Verbaas reported the true price of $241,000 per key in the company’s third quarter earnings report on Nov. 2. The $27.75 million sale price represented a 15.3x multiple on 2019 Hotel EBITDA or a 12.0x multiple on Hotel EBITDA for the twelve months ended September 30, 2022.

Also, during the third quarter, the company entered into an agreement to sell the 189-room Kimpton Hotel Monaco Denver for $69.75 million, or approximately $369,000 per key.

“The completed disposition of Bohemian Hotel Celebration and the expected sale of Kimpton Hotel Monaco Denver are further evidence of our ability to enhance our liquidity and balance sheet strength by monetizing non-strategic assets at attractive valuation multiples while continually enhancing the quality and growth profile of our portfolio,” commented Mr. Verbaas. “We initiated the potential disposition process earlier in the year and are pleased with the execution and pricing on both transactions, despite the recent uncertainty in overall economic conditions in general and financing markets in particular.”

“We believe that the timing of the sale of Bohemian Hotel Celebration is appropriate and opportunistic, as the strength in leisure demand and desirability of the greater Orlando market created an opportunity to dispose of a small non-strategic asset with substantial near-term capital needs at attractive pricing,” continued Mr. Verbaas. “We maintain a very meaningful presence in the Orlando market which continues to benefit from a diverse set of demand drivers, including continued strong leisure demand and improving group and corporate demand.”

Vision has a portfolio and development pipeline of lifestyle, soft-branded, premium select, and full-service hotels affiliated with the Hilton, Marriott, Hyatt and InterContinental brands. Earlier this year, the company celebrated its 25th anniversary and announced plans to add 15 new properties over the next three years. That includes the 12-story Hotel Tempo in downtown Nashville.

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Blake said the company will be looking to expand its holdings in Florida now that it has a presence in the state. “We are focused on Orlando, but we are interested in the whole state of Florida,” he said. “It’s a high barrier to entry market, so we’re really excited to over that bar.”

Orlando’s hotel industry is benefiting from a strong recovery this year, especially in leisure and group travel. Daryl Cronk, director of hospitality analytics with CoStar Group, said occupancy is up 31% from the same period last year, while ADR and RevPAR are now in line with pre-pandemic levels.

EDITOR’S NOTE: This article was originally published on Oct. 21, 2022. It has been updated with new information from the Xenia Hotels & Resorts Third Quarter Earnings Report, which was released on Nov. 2.

Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261, or tweet me at @byLauraKinsler. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.


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