DSH Hotel Advisors, a hotel investment advisory firm, has announced that its Managing Principal, Dennis S. Hopper, CCIM, and Senior Investment Associate, Dylan N. Amin, facilitated the sale of the Quality Inn Kennedy Space Center by Choice Hotels in Titusville, Florida for $7,400,000 on March 9th, 2023. The 117-room hotel had recently undergone renovations. DSH Hotel Advisors represented the seller, Frontier Hospitality LLC, and the buyer, Jay Jagannath Hospitality LLC, in the transaction.
The new owner of the hotel is an investor based outside of the United States.
“This sale is representative of our ability to produce multiple offers and ultimately maximize the sale price for our clients, while offering unique hotel investment opportunities to the marketplace. The number of investors contacting our team on a daily basis is incredibly high – they want midscale hotels in FL, and the majority of the investors are securing traditional financing for these assets.”
“Inflation has proven to have certain positive impacts for hotel operations – since hotels have the ability to adjust their rates daily, they are able to capitalize on this market dynamic and drive up revenue. One of the downsides to inflation is the recent rise in interest rates, which is causing debt to be more expensive and ultimately less attractive to investors. The recent fallout of Silicon Valley Bank and Signature Bank only seem to add to the complexity of the market dynamics that we are all presently navigating through; however, the demand for hotels in FL and the Southeast U.S. seem to be as strong as ever,” says Hopper.
“We were able to generate 14 offers throughout the course of marketing the Quality Inn for sale. Although interest rates have been on the rise, we are seeing more demand than ever for properties in Florida. With the significant growth in Brevard County, and the cruise port seeing record numbers, we were able to achieve a healthy market-price with plenty of upside remaining for the new owner,” says Amin.
The location of the Quality Inn Kennedy Space Center by Choice Hotels, situated just off Interstate 95, makes it a strategic hospitality hub for the space center area and beyond to the Cape Canaveral cruise terminal. The hotel has undergone recent upgrades, including a refurbished lobby, newly painted exterior, fresh signage, new guest mattresses and linens, and a resurfaced parking lot.