The owner-operator of two of the largest hotels in Ocean City, Md., the Princess Bayside Beach Hotel and Princess Royale Hotel, has bought into the Greater Orlando market this week, with a $7 million purchase of Ocoee's Fairfield Inn & Suites.
Located at 10791 W. Colonial Dr., the Fairfield Inn and Suites Orlando Ocoee is a three-story, 80-room hotel built in 2004.
Malcolm C. Berman, who owns five hotels along Florida's west coast, along with the two notable beach properties in Ocean City, bought the property via Boulder Hotel Orlando West LLC.
Berman operates his properties through his own firm, Boulder Hotel Management.
"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," he said.
Hotel room supply has remained relatively flat in Ocoee since 2010, but overall demand, i.e. occupied room nights, has grown at an average compound rate of 7.5 percent over the past four years, with a jump of 13.1 percent in 2014 over the year prior, according to Don Stephens, vice president in Orlando for HVS Consulting & Valuation.
Occupancy rates in Ocoee are near pre-recession levels through the first half of this year at 76.1 percent, a 6.9-point gain over the first half of 2014. Post-recession growth of residential, commercial and medical developments in that market has helped revenue per available room grow at an annual average compound rate of 11.4 percent, Stephens said.
The Ocoee property had at least $1.5 million worth of renovations put into the property in recent years to convert it to Marriott's Fairfield flag, Berman said, so necessary updates to the property to maintain that brand should be minimal.
The Fairfield Inn was sold by Florida Lodging Development LLC, an affiliate of Jeff Krisan and his family that own the Sabal Hotel in Ocoee. That ownership group also sold the Red Roof Inn Orlando West in Ocoee in late June for an estimated $4.24 million.
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