UPDATED: APRIL 18, 2018 10:14 AM — A Peruvian investor and founder of multiple private universities paid $19.3 million on Tuesday for his first North American hotel asset, buying a Hampton Inn in Orlando's tourism corridor.
Gallegos has previously invested in Miami-area commercial and residential properties, but this is his first in Orlando.
The new owner has the opportunity with favorable C-2 zoning to expand the hotel by up to 80 units, pending approval by city planners and Hilton. Naples Hotel Group will be brought on as new property manager.
The buyer will source an $8.9 million loan from Seacoast Bank that is anticipated to close on Wednesday, of which $2.5 million is earmarked for funding of a property improvement program, according to Doug Weiner, vice president of commercial real estate at Seacoast in Winter Park.
The seller was Hari Om Inc/ID I, an affiliate of local hotelier Guatam S. Desai, which previously paid $13 million in 2008.
Kiran Patel of Florida Executive Commercial Brokers, Inc. served as selling and listing agent. Patel had been marketing the property for sale at $20.5 million since early 2017 with a Cap rate of 8.78 percent.
Desai stood firm on his listing price for more than a year, Patel told GrowthSpotter. He reduced slightly to complete Tuesday's deal, but was ultimately rewarded for remaining confident that Orlando's consistent growth in tourism demand and hotel revenue generation would eventually bring bidders up near the original asking price.
Luis Pajuelo of A1 Group Realty in Miami represented the buyer.