An 80-room Fairfield Inn and Suites in Ocoee that was bought for $7 million in August 2015 resold last week to a Vancouver-based real estate investment trust (REIT) for just over $10 million, a 44 percent increase for the individual seller.
Located at 10971 W. Colonial Dr., the Nov. 29 sale was part of a portfolio purchase by American Hotel Income Properties REIT LP of six branded, select service hotels in Florida, announced on Nov. 30.
The hotels are in Tampa, Orlando, Sarasota, and Fort Myers, and total 559 rooms. The purchase price of all six was $61 million, according to a company statement. That excludes approximately $10.6 million for brand-mandated property improvement plans ("PIPs") and before customary closing and post-acquisition adjustments, per AHIP.
"The six hotels are strategically located in larger population centers on Florida's west coast and in Central Florida, near major transportation corridors and close to a variety of manufacturing, military, information-technology, medical, education, sports and leisure demand generators," the company said.
According to its website, AHIP hotels are managed by an external hotel manager, One Hospitality Group, a subsidiary of O'Neill Hotels & Resorts LTDl, led by John O'Neill who is involved in the investment, development and management of a number of hospitality businesses.
The seller was an affiliate LLC of Malcolm C. Berman, who owns five hotels along Florida's west coast, along with two notable beach properties in Ocean City, Maryland. He bought it via Boulder Hotel Orlando West LLC for $7 million.
"I thought Ocoee was very cute, it's not that far from Orlando or Disney, is in a quiet location and a lot of times (travelers) like that, and it's reasonably priced," Berman told GrowthSpotter in August of last year.