An extended stay hotel just north of Orlando International Airport fetched over $20.6 million in a deal that closed late last week.
McKibbon Hospitality developed the 128-room Homewood Suites Orlando Airport on Gateway Village Circle in 2013 and enjoyed a stellar year in 2022 with an average occupancy of over 95%. Hotel amenities include an outdoor pool, complimentary airport shuttle, sport court, fitness center and business center.
Berkadia Hotels and Hospitality represented the sellers, led by Managing Directors Preston Reid and Michael Weinberg and Senior Directors Wyatt Krapf and Kyle Sahlsten.
“This hotel received more interest than any transaction we have worked on in 2022,” said Reid. “The buyer plans to execute a full-scale renovation, which will enable this asset to continue to thrive in this dynamic submarket.”
Baywood Hotels used proceeds from a 1031 exchange to purchase the asset. Reid told GrowthSpotter Baywood was excited to enter the Gateway market through a premium brand with value-add upside.
“This hotel continued to perform exceptionally well during the marketing process which helped us achieve strong pricing,” Reid added.
The fast-growing hotelier operates more than 20 properties in Florida, but this is their first in the Orlando market. The company is headquartered in Columbia, Maryland, and has regional offices in Denver, Miami, Rochester, San Antonio and Northern Virginia.
Hilton introduced a new Homewood Suites prototype and logo in 2021 to refresh the 30-year-old extended stay brand. Some of the new features include expanded fitness centers, revamped outdoor social spaces and a new king efficiency suite with fully equipped kitchen and separate workspace. Guests also have access to a flex storage area where they can stow away large items, such as bikes and baby carriages.
Following the introduction of the prototype, Hilton rolled out a renovation guide for existing hotel owners to provide guidance and direction on updating elements of their hotels.
McKibbon remains vested in the Gateway market having previously completed a Hampton Inn & Suites on Gateway Village Circle in 2012. The company has two more hotels in the pipeline right next door: a 156-key Hyatt House scheduled to open in early 2023 followed by a 155-key AC Hotel.