Top-Tier Brand Hotel Development Opportunity

• The property represents a 0.53-acre parcel of land that is open for hotel development, unencumbered by a franchise agreement, allowing investors the ability to align with a preferred brand or develop an independent concept tailored to market demand.

• Brand representatives from Marriott, Hilton, IHG, and Choice have all expressed interest in the prospective development, highlighting the property’s strategic appeal and alignment with their growth objectives in the Orlando CBD submarket. We expect a developer to be able to negotiate favorable franchise license terms (including potential brand incentives) as an accretive part of the overall development.

• This interest provides potential investors with flexibility to partner with globally recognized brands, ensuring access to world-renowned loyalty programs and extensive marketing channels.

• An opportunity exists to optimize operational efficiency and profit margins by selecting and/or negotiating the most favorable branding and management structure.

Flexibility to Curate Developer’s Vision

• The offering provides an investor with the flexibility to design and construct a hotel that caters to targeted customer segments, be it a luxury boutique hotel, an upscale branded offering, or a lifestyle-focused independent property. Hilton has also indicated that the Homewood Suites by Hilton franchise is currently available.

• The property has been partially entitled to accommodate a high-density, high-rise boutique hotel, with utility connections in place, and has previously secured approvals for a 200+ key high-rise structure. Hotel usage is permitted under current zoning, providing a clear path to development, thus reducing the time-to-market period.

• It is our opinion that a developer would opt to construct an estimated 185- to 225-key hotel, dependent on configuration and product/brand selection.

• The existing elevated parking structure across West Jefferson Street will be available for use by hotel guests.

Excellent Location Among Strong Corporate & Leisure Demand Generators

• The CBD serves as the dynamic core of Orlando, housing a diverse range of businesses, from corporate headquarters and regional satellite offices to innovative tech firms like Luminar Technologies and thriving start-ups such as Stax Payments.

• Beyond its commercial appeal, the CBD boasts a vibrant cultural scene, featuring institutions such as the Dr. Phillips Center for the Performing Arts, the Orlando Museum of Art's satellite gallery, and the CityArts Factory. Visitors can enjoy a thriving nightlife along Church Street and Orange Avenue, all easily accessible via public transportation options like the SunRail and LYMMO bus system.

• Corporate demand generators nearby include Chase Bank, Truist, PNC Bank, Seacoast Bank, Trustco Bank, Sunrise Bank, Regions Bank, and Ocean Bank, among others.

• Leisure demand generators in the area include Kia Center (Orlando Magic Arena), Inter & Co Stadium (Orlando City SC), Dr. Phillips Center for the Performing Arts, and Lake Eola Park, among others.

Strong Competitive Submarket Performance

• STR data through year-end 2024 demonstrate robust performance in the local competitive market, with 9.6% year-over-year (YOY) growth in occupancy, coupled with an average-daily-rate (ADR) increase of 2.5% YOY, driving a remarkable 12.4% YOY growth in RevPAR—a testament to the area's resilient and thriving hospitality market.

• While room supply growth in 2024 was relatively muted within the competitive area, the market experienced a surge in demand of nearly 10.0%, creating an optimal environment for a new product to capitalize on this demand and capture its fair share in the market.

• Combined rooms revenue within the competitive set surpassed $59,000,000 in 2024, reflecting 12.5% YOY growth.

• Upon completion, the proposed hotel would benefit from being the newest hotel in the local market, allowing ownership to competitively price its product against competition and ramp up operations expeditiously.

Orlando: The Future-Ready City

• Orlando’s population surged from 238,300 in 2010 to 334,490 in 2024, with nearly 1,000 new residents per week; the addition of another 1 million people by 2045 has been projected. It ranks as the second fastest-growing large metropolitan area in the United States, trailing only Austin, Texas.

• Orlando’s economy surpassed $200 billion in 2023, making it the sixth fastest-growing economy among the top 30 U.S. regions. All counties in the area (Lake, Orange, Osceola, and Seminole) are experiencing growth above the national average, fueled by diverse industries including tourism, advanced manufacturing, and financial services, to name a few.

• As the "Theme Park Capital of the World," Orlando’s tourism industry contributed $92.5 billion in economic impact in 2023, supporting 464,000 jobs and generating $12.6 billion in government revenue. Disney alone plans $17 billion in investments over the next 15 years.

• Entering 2025, Greater Orlando's economic growth will continue to be driven by population increases and business expansions, with key industries and sectors such as tourism, hospitality, healthcare, advanced manufacturing, finance, aerospace, and defense leading the way.