Apopka, FL Two-Pack

321 South Lake Cortez Drive, Apopka, FL 32703, US

Execute Confidentiality Agreement

THE OFFERING

HVS Brokerage & Advisory, in cooperation with Eric Vincent Guerrero, as the sole and exclusive advisory firm to ownership, is pleased to present the opportunity to acquire both the 81-key Hampton Inn & Suites by Hilton and the 77-key Holiday Inn Express & Suites Orlando-Apopka. The properties, which are located next to one another, must be acquired as a portfolio. A new investor will have the opportunity to realize the significant upside of acquiring two well-maintained, strong-performing, limited-service hotel assets within the highly desirable Greater Orlando, Florida, market, as well as the rebounding performance and ability to improve net operating income (NOI) flow-through by maximizing the operational efficiencies offered by the portfolio, such as shared staffing and management.

Orlando North

Submarket

Stabilized

Investment Type

158

Keys

2009

Year Built

$131.96

Average Daily Rate

79.3%

Occupancy

$104.63

RevPAR

$6,033,788

Room Revenue

$2,030,197

Net Operating Income

Financials as of Trailing-Twelve-Month (TTM);Aug;2024

PROPERTY HIGHLIGHTS

Strong-Performing Hotel Assets

  • Per the combined August 2024 trailing-twelve-month (TTM) profit-and-loss (P&L) statement, the portfolio achieved a $104 RevPAR level, earning $6,000,000 (rounded) in rooms revenue, with an NOI flow-through of $2,030,000 (rounded).

  • According to the September 2024 STR data, in terms of RevPAR, the Hampton Inn & Suites By Hilton ranked second (out of five competitive hotels), while the Holiday Inn Express & Suites ranked first (out of six competitive hotels).

  • The portfolio benefits from a strong, stabilized cash flow.

Operational Efficiency Upside

  • The portfolio offers operational efficiencies of key property-level functions, including a shared General Manager, Director of Sales, Sales Coordinator, and a Chief Engineer, allowing for reduced payroll costs and higher NOI flow-through.

  • In 2022, the portfolio achieved an impressive 48.5% gross house profit (GOP). However, GOP fell to 45.4% in the August 2024 TTM period because of the notable expense increase in the rooms department.

  • Based upon HVS’s pro-forma projections, stabilized rooms revenue in 2026 (Year 2) is anticipated to surpass $6.3 million, with a GOP of 47.6% and NOI flow-through of $2.2 million (rounded).

Recently Renovated, High-Quality Physical Products

  • Current ownership has maintained the assets well, having completed multiple extensive renovations on both properties.

  • An investor can expect new, long-term franchise agreements upon completion of the change-of-ownership PIPs.

  • From December 2018 to November 2019, the Hampton Inn & Suites by Hilton underwent an extensive, property-wide renovation, inclusive of the public areas and guestrooms; moreover, the case goods were updated in early 2024.

  • From July 2019 to May 2020, the Holiday Inn Express & Suites underwent an extensive, property-wide renovation, per the brand’s "Formula Blue" design scheme.

Transformative Developments Shaping Apopka’s Future

  • According to local officials, Apopka’s population is expected to grow over 6.0% in the next five years due to over 13,000 housing units planned (or are in construction), which will sprout demand for more commercial projects locally.

  • In June 2024, McCraney Property Company announced plans to develop a new industrial park in Apopka. The logistics center will be built in two phases and is expected to house over 1.25 million square feet of industrial space and spec warehousing.

    • This past January, developers broke ground on the 255-acre, $1.2 billion, Wyld Oaks mixed-use development along US Highway 429. The development will include over 280,000 square feet of retail and restaurant space, between 3,000 and 4,000 multifamily residential units, office space, a hotel, a three-acre medical campus, and a ten-acre park and preserve.

    • In 2023, AdventHealth acquired 5.56 acres of land in Apopka with plans to construct a new medical campus and emergency center. The project is in its final planning stages and expected to break ground in 2025.

Excellent Location Among Strong Corporate and Leisure Demand Generators

  • The properties benefit from very good visibility off the frontage along U.S. Highway 436, near numerous dining, retail, and entertainment options, which is a positive attribute for both business and transient guests.

  • Corporate demand generators in the area include University of Florida’s Pest Management University, Apopka Logistics Center, a Coca-Cola distribution center, AdventHealth Apopka Hospital, Goya Foods, Century Link, Duke Energy, and FINFROCK.

  • Leisure demand generators in the area include Lake Apopka, Wekiwa Springs State Park, Northwest Recreation Complex, Rock Springs, numerous golf courses, and groups from the nearby wedding venues.

  • Additionally, local officials are working on the planning phase of a large, 230-acre, mixed-use development in Apopka. If approved, the project will be the largest commercial development built in the area, consisting of 2,900 residential units and over one million square feet of retail, commercial, and industrial space.

Management Availability

  • The portfolio is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the operational strategies of the hotels.

MAP

CONTACT US

Investment Sales Contacts

Eric Guerrero

Senior Managing Director, Partner, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0012
eguerrero@hvs.com

Josh Williams

Senior Managing Director, Brokerage & Advisory
HVS
Charleston
+1 (843) 438-2502
jwilliams@hvs.com

James Rebullida

Vice President, Brokerage & Advisory
HVS
Houston
+1 (713) 955-5580
jrebullida@hvs.com

Jack Mahan

Associate, Brokerage & Advisory
HVS
Charleston
+1 (843) 438-2503
jmahan@hvs.com

Ryan Karawan

Associate, Brokerage & Advisory
HVS
Charleston
+1 (843) 438-2504
rkarawan@hvs.com

Fadi Rawashdeh

Senior Associate, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0013
frawashdeh@hvs.com

Capital Markets Contact

Emil Iskandar

Senior Vice President, Capital Markets
HVS
Los Angeles
+1 (720) 231-3927
eiskandar@hvs.com