Deal highlights hospitality investor interest moving beyond primary markets
Cocoa Beach, FL, September 10, 2018 – As Florida’s Space Coast continues to exhibit a vibrant and dynamic economy, the Colliers International Hotels team of Rich Lillis and John Wijtenburg closed this week on the sale of the Quality Inn & Suites located in the heart of Cocoa Beach. The sale of the 170-key midscale hotel from long-time owner Crossway Inn, Inc. to buyer CB Hospitality LLC highlights the expanded interest for hotel assets in secondary and tertiary Florida markets.
Located at 3901 N. Atlantic Avenue in Cocoa Beach, the hotel includes 95,400 square feet of gross building area on 4.33 acres. Prominently situated on Highway AIA, a half block from famed Cocoa Beach, the hotel offers convenient access to numerous demand generators, including Kennedy Space Center, Port Canaveral, Cocoa Beach Pier, Patrick Air Force Base, and many other area attractions, including close proximity to Orlando theme parks.
“Beyond the beautiful beach location, the Space Coast is supported by a variety of industries and interests which are propelling the diverse and robust lodging market,” said Colliers South Florida Executive Vice President Rich Lillis, who also serves as National Director of the firm’s Hotels specialty practice group. “With regional lodging supply growth very low and demand on the rise, the opportunity to acquire a well-maintained, closely-held hotel in this market is unique in itself.”
Seller Crossway Inn, Inc. has been the sole-proprietor owner-operator of the hotel for 46 years. The hotel operated as a Comfort Inn & Suites, and recently converted to a Quality Inn & Suites, leveraging the same licensee brand relationship with Choice Hotels that has been successful for the property for several years.
Gulf Breeze Florida-based Innisfree Hotels partnered with Dallas-based RREAF Holdings in the acquisition. For Innisfree Hotels, a significant, privately-held regional hotel investor with 23 owned and managed hotel properties, the acquisition signifies a strategic step to continue expanding their statewide footprint outside of the Florida Panhandle; the hotel is their first property on the Space Coast. CB Hospitality LLC has planned upgrades to the facility that will capitalize on the prime beach location.
“Brevard County, and particularly Cocoa Beach, have firmly established themselves as an attractive destination for both leisure guests and an expanding aerospace industry,” added Colliers Vice President & Hotels specialty practice group member John Wijtenburg. “Unlike markets such as Miami, for example, this region still has very low new supply due to its barrier island location and restrictive zoning that creates tremendous barriers to entry for most investors. This sale illustrates institutional capital is continuing to chase lodging, especially in Florida.”
General tourism and hotel demand in Cocoa Beach has swelled in parallel with other rising economic drivers. While growth in new hotel supply in the market remains limited, hotel fundamentals climb with continued growth. Since 2014, the Average Daily Rate (ADR) in Cocoa Beach has grown 22.7%, the Occupancy Rate has swelled from 62.2% to 72.6% and Revenue Per Available Room (RevPAR) has increased 43.3%.
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About Colliers International Group
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $20 billion of assets under management from the world’s most respected institutional real estate investors.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.
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For further information, please contact:
Paola Iuspa-Abbott on behalf of Colliers International South Florida
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