HEI Hospitality has announced that it has acquired the 333-suite Embassy Suites Orlando—Lake Buena Vista Resort in Orlando from Strategic Hotel Capital for $56 million. The hotel is located one mile from Disney World and HEI expects to invest approximately $6 million to renovate the guest rooms and public areas over the next two years. Merritt Hospitality, a wholly owned subsidiary of HEI, will operate the hotel.
“The Orlando market has recovered well since the hurricanes of a year ago, and the city remains the nation’s number one tourist destination, drawing in excess of 43 million visitors last year,” said Steve Mendell, executive vice president—acquisitions and development. “The all-suite Embassy brand, with its spacious two-room accommodations, is by far the most ideally suited product for the Orlando market.”
“We have acquired four hotels in 2005 and continue to have a healthy appetite for upscale properties in markets with high barriers to new competition,” said Roger Clark, senior vice president—acquisitions and development. “We seek stabilized and turn-around hotels or portfolios of first class, full-service hotels and resorts with 200 to 500 rooms. This is our fifth acquisition in Florida, and we continue to seek properties here and in the other top MSAs around the country.”