Palm Holdings, an international hotel company with offices in London and Ontario, recently paid $9.125 million to enter the Greater Orlando market with the Inn at Calypso Cayand is activately seeking more assets in Florida, a lead executive with the company told GrowthSpotter.
The 162-room hotel is located at the Calypso Cay Resort just off Osceola Parkway. Built in 2001, it was formerly a Country Inn-branded hotel before being purchased in 2012 by Timescape Resorts.
Paul Sutton, vice president of operations for Palm Holdings, said Monday the company is planning a 15-month, multi-million dollar renovation to bring the property up to international brand standards. The conversion will start in mid-2016 and will include floor-to-ceiling renovation of guest rooms - including new beds and furnishings - as well as corridors and public spaces.
"When we renovate properties we usually keep the properties operating," Sutton said. "We usually take two floors at a time and then work on the public areas in between."
The hotel shares resort amenities, including swimming pools, a splash park and miniature golf course, with the Calypso Cay timeshare properties.
Sutton said Palm targeted the hotel because it was underperforming for the market, given its amenities and proximity to theme parks.
"The three or four branded hotels which are adjacent to Calypso Cay are achieving significantly higher occupancy and rates than Calypso Cay is currently operating at," he said. "So we used that as a benchmark, and we feel that within 12 months of rebranding, we will be performing at same level, if not higher."
He said the company is working closely with Timescape, but will be hiring an entirely new management team within the next four to six weeks.
The acquisition further establishes Palm Holdings' footprint in Florida, where it looks to continue acquiring hotels and establishing a larger company presence. The company also owns a Holiday Inn Express & Suites in downtown Naples.
"We are working with and have been working with a number of brokers in the Florida market," Sutton said. "We are very keen and motivated to expand our portfolio in Florida."