Palm Bay, FL, US, Americas

Palm Bay FL Portfolio

Portfolio description

JLL’s Hotels & Hospitality Group, as sole and exclusive agent for the owner, has been retained to offer for sale the fee simple interest in the 106-room Hyatt Place Melbourne Palm Bay & the 87-room the Home2 Suites Palm Bay I-95. The Hotels benefit from their convenient location along Florida’s Space Coast, an area with significant development and population growth. These lender-owned Hotels were delivered in 2020 and are the newest Hotels in their respective competitive sets. Although defeasible, the Properties are encumbered by attractive PACE financing assumable at below current market interest rates, a new owner can step in with attractive returns. The portfolio presents a unique opportunity for a new owner to acquire two recently delivered, institutional-quality assets at an attractive discount to replacement cost.

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Attributes

Units

193

Building area gross

67,700 sf

Land area gross

2.55 acres

Palm Bay FL Portfolio (2 Properties)

Media

Investment highlights

PREMIUM-BRANDED ASSETS WITH EXCELLENT HANDS-ON UPSIDE: These premium-branded, select-service Hotels are offered at a significant discount to replacement cost. While the Hotels are in good physical condition, they stand to benefit from a more engaged, hands-on owner to elevate the Properties’ performance. A new owner can implement an optimal revenue management strategy, coupled with an aggressive sales and marketing plan to further increase their profitability and returns for their investors.
UNENCUMBERED OF MANAGEMENT: The Hotels are offered unencumbered by management, which allows a new investor to effectively implement a business plan that aligns their investment strategy with an operating model that will serve to improve top and bottom-line performance.
ATTRACTIVE PACE FINANCING TERMS: The Hotels have attractive PACE financing that can be assumed, well below current-market interest rates. An abstract of the terms for each Property’s PACE loan can be found in pages 12 and 18 of our Offering Memorandum.
RECENTLY DELIVERED, INSTITUTIONAL QUALITY ASSETS: The Hotels were delivered in 2020 and are the newest hotels within their respective competitive sets. A new owner has the opportunity to acquire recently delivered, premium-branded hotels with minimal PIP expectations at an attractive discount to replacement cost
ABOVE MARKET INSURANCE PREMIUMS: The Hotels’ insurance premiums are currently priced above current market values relative to comparable hotels in the market. A new owner has the opportunity for significant cost savings by consolidating the Hotels’ insurance policies into a portfolio policy if available, or renegotiate with more favorable terms.
LOCATED IN FLORIDA’S SPACE COAST:
The Hotels are located along Florida’s notorious Space Coast. The Space Coast is along the east coast of Central Florida, expanding from Cocoa Beach to Vero Beach, all within one hour from Orlando. The Space Coast is home to major destinations such as the John F. Kennedy Space Center, Cape Canaveral Space Force Station, Port Canaveral, Patrick Space Force Base, and an abundance of white sand beaches and outdoor recreation.
PREMIUM ALL-SUITE HILTON AND HYATT BRAND AFFILIATIONS: The Hotels benefit from premium brand affiliations from Hilton and Hyatt. As two of the top reservation systems in the world, a new owner will be able to capitalize on the global reach both brands offer, capturing a variety of hotel guests as it relates to leisure and business demand.
ATTRACTIVE DISCOUNT TO REPLACEMENT COST: Give the lender-owned nature of the offering, the Hotels are being sold at a significant discount to replacement cost with construction costs at an all-time high. Given the ability to acquire the Properties at an extremely attractive basis, a new owner has a significant opportunity to increase their overall return and profitability for their investors.