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Hampton Inn & Suites by Hilton and Holiday Inn Express & Suites Orlando-Apopka – Image Credit HVS
HVS Brokerage & Advisory has announced the sale of two hotel assets in Apopka, Florida. The 81-key Hampton Inn & Suites by Hilton and the 77-key Holiday Inn Express & Suites Orlando-Apopka are available for acquisition as part of a portfolio.
The acquisition offers substantial upside potential for investors. Both properties have demonstrated strong performance and are in the desirable Greater Orlando market. Leveraging shared staffing and management for improved operational efficiencies can also increase net operating income.
According to the profit-and-loss statement from August 2024, the portfolio achieved a $104 RevPAR level, generating approximately $6 million in room revenue and a net operating income of approximately $2.03 million. Both hotels have ranked well in terms of RevPAR among competitive hotels in the area.
The portfolio offers operational efficiency, shared staffing, and management roles, enabling cost savings and higher net operating income. The portfolio achieved a 48.5% gross operating profit in 2022, which decreased to 45.4% in August 2024 due to increased room department expenses.
HVS projects that room revenue will exceed $6.3 million by 2026, with a gross operating profit of 47.6% and a net operating income of $2.2 million.
The current owners have kept the assets in good condition, completing extensive renovations on both properties. Upon completion of the change-of-ownership Property Improvement Plans (PIPs), new owners can expect new long-term franchise agreements.
Apopka is a city on the rise. Its population is expected to grow over 6% in the next five years due to over 13,000 planned housing units, which will spur demand for more commercial projects locally. Key developments include a new industrial park, a $1.2 billion mixed-use development along US Highway 429, and a new medical campus and emergency center.
The hotels have excellent visibility off US Highway 436, close to dining, retail, and entertainment options. Local demand generators include the University of Florida’s Pest Management University, Apopka Logistics Center, AdventHealth Apopka Hospital, and various leisure spots like Lake Apopka and Wekiwa Springs State Park.
The portfolio is offered free of management encumbrances, allowing an investor to modify the hotels’ operational strategies.
Visit HVS for more details.
