The 197-room Comfort Inn Maingaite on Kissimmee’s W192 tourism corridor has sold for the second time in five years.
SLB Hotel Group, led by Alfonso Borrero, had purchased the hotel at 7675 W. Irlo Bronson Memorial Highway in 2016 for $8.7 million. The company completed a renovation the previous owner had started that year, earning the distinction of being named a Walt Disney World Good Neighbor Hotel.
The upgrades included the addition of family-friendly rooms with bunkbeds, new landscaping, new furniture and decor and a new breakfast area.
“The renovation completion of the Comfort Inn Maingate is a major milestone for us and we are so pleased to welcome guests to come enjoy the enhanced accommodations,” SLB COO Ed Swain said at the time. “Central Florida can be a thrilling experience for families. Comfort Inn Maingate is the ideal refuge to refresh and recharge while creating all those wonderful memories.”
The company sold the hotel last week for $12.75 million. The deal breaks down to $64,720 per room.
Celtic Bank Corp. provided $9.975 million in financing to the buyer, an investment group with members in Weston, Florida and in New Jersey.
Anup Shah of AHG Brokerage represented the sellers, who accepted $1 million below the $13.75 million list price.
“The sellers reduced the price, and we all had to work hard to get the transaction completed and done,” he said.
Shah told GrowthSpotter the sellers had initially listed the asset in late 2019 with a target price of about $16 million. “At that time, there was no crisis,” he said. “The property was doing phenomenal and had performed well over the last three years. There was a lot of interest. Then, of course, we hit the wall when the economy shut down in 2020.”
The owners tried to sell the hotel at auction without success. “Then at some point, we came past a turning point this year and some of the same parties came back with offers,” Shah said.
He said he believes the new ownership group will be successful. This is their first asset in the Orlando market. “I think they’re going to do well, even though we have the current situation with the (Delta) varient,” Shah said. “I think in a couple of years, we’ll see things change in the marketplace where it will bounce back really strong.”
The hotel was built in 1983 and sits on 4.6 acres just east of Formosa Gardens. The previous owner, Aziz Visram, split off a 3.2-acre vacant parcel prior to the 2016 sale and sold it to the largest franchiser of WoodSpring Suites in the U.S. in late 2019. Brookwood Hotels just recently completed a new Woodspring Suites extended-stay hotel on the site.
While business travel is still largely at a standstill due to COVID-19, hotels serving Orlando’s theme park visitors are operating a near-full occupancy, leading to more hotel sales in 2021 than the previous year. Transactions so far have topped over $800 million in the region.
In early May, Host Hotels & Resorts Inc. purchased the 444-room Four Seasons Resort Orlando in a $610 million all-cash deal. The record-breaking sale equated to about $1.37 million a key — the highest price ever paid in the Orlando market.
While London & Regional Properties has made several purchases in Orlando this year totaling over $160 million. Those deals include the Orlando Marriott Village hotel complex, a 1,100-room hotel trio in Lake Buena Vista, purchased in June, and 486-room Marriott Sheraton Lake Buena Vista Resort at 12205 S. Apopka Vineland Rd., which transacted for more than $49.8 million.
Atlanta-based Songy Highroads paid $31 million in August for the iconic, sphere-topped Four Points Sheraton Orlando on International Drive. The sale price was about 20% below the pre-COVID appraised value.