Atlanta-based hotel private equity investor Noble Investment Group paid $88.2 million on June 1 for its first piece of Orlando's tourism corridor, buying a trio of properties known as the Marriott Village in Lake Buena Vista.
The properties were part of a $142 million-portfolio acquisition of five hotels (1,396 keys) from seller Ashford Hospitality Trust, which was first announced in April but closed last week.
"We like the RevPar (Revenue Per Available Room) forecast for Orlando's market overall, and believe Orlando still has some strong room to run from a performance standpoint, at this point in the cycle for the hotel business," Ben Brunt, principal and executive vice president with Noble Investment, told GrowthSpotter on Tuesday. "We see significant opportunity to physically improve these properties and dramatically enhance guest experience both inside and outside the hotels."
The Orlando hotels were all built in 2000, developed as a complex in the 8600 block of Vineland Avenue, southwest of Little Lake Bryan and the Orlando Vineland Premium Outlets, and less than a mile east of Walt Disney World's main entrance via Hotel Plaza Boulevard.
The total $88.2 million paid for Orlando properties broke down to an average of $80,181 per key.
Noble has a capital improvements plan to bring all three Orlando properties up to current brand standards, though Brunt did not confirm how much would be spent.
"We have already begun design and expect to complete the renovations during our first year of ownership," said Brunt, adding the hotels are all at different stages in their renovation cycle, and a focus will be placed on improving public areas outside of each.
Looking forward, Noble Investment would pursue more value-add investment opportunities in Orlando hospitality "if they present themselves," Brunt said.
Marriott International Property Management was retained by Noble to continue managing the three hotels.
The company acquired a mortgage worth $105.5 million from Wells Fargo Bank National Association based in Charlotte, to fund acquisition of the three properties in Orlando and others outside of Florida.