Osceola County Developments

New owner plans major renovation and rebranding of Motel 6 near Disney

The Motel 6 Kissimmee Maingate West will undergo a major renovation and be rebranded as a Rodeway Inn, a Choice Hotels economy brand, the buyer told GrowthSpotter on Friday.

Delaware Hotel Group (DHG) bought the 147-room corporate-owned motel on Kissimmee's W192 tourism corridor on April 26 for $2 million. The company then turned around and sold the asset the next day for $2.9 million to investment partner, IB Hotels LLC.


"We have a long-standing relationship with Motel 6," DHG Owner Mike Khatiwala said. "We've done 10 Motel 6 deals. When corporate has a deal, we look at it to see if it makes sense for us. If it does, we buy the motel and put it under a different partnership, so at that point Delaware Hotel Group doesn't really own it. But we stay involved in the consulting and overall operations of the motel."

Khatiwala said DHG looks for partners who have experience in the hospitality industry. In this case, IB Hotels principal Ashwin Maisuria had worked for 10 years as a hotel and motel manager who was looking to relocate to the Orlando area.


"The real owner is a hands-on operator who will be the person on property," Khatiwala said. "He's there every day. He's a partner in the deal, and he's the general manager. We help put the deal together and put in any back-end support to make sure he's successful."

In addition to re-branding, the new owner plans to given the 34-year-old motel a complete refresh. Exterior improvements will include new paint, signage, landscaping and resurfacing the parking lot. Each room will get vinyl plank flooring, paint, flat-screen TVs and high-speed wifi service. Bathroom upgrades will likely come in a later phase.

"That's all in the works," Khatiwala said. "Overall, the physical condition is not that bad. It just needs cosmetic changes."

DHG currently owns and operates 19 hotels and motels in seven states and is actively looking for more deals in Central Florida.

"Once we've done one deal in an area, we like to add more so we can bring economies of scale," he said. "We're definitely interested in the Orlando area -- both for management and investment proprieties. We're a diverse company, we have everything from full-service hotels to 50- and 60-room economy motels."

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