Crowne Plaza Tampa East Purchased by Interstate Hotels
- Oct 31, 2011
October 31, 2011
By Nicholas Ziegler, News Editor
Hotel investments are still hot, and Interstate Hotels & Resorts is cashing in on that trend. The management company has just announced its acquisition of the 265-room Crown Plaza Tampa East in a joint venture with Waramaug Hospitality, L.L.C. and a private investment group. While the purchase price was not disclosed, Interstate has committed to an $8.5 million renovation of the property.
“The Crowne Plaza Tampa East represents a compelling investment opportunity, and we fully expect to deliver superior results,” Jim Abrahamson, Interstate’s president & COO, said. “The hotel’s location, adjacent to a thriving business park and close to a number of leisure demand generators, greatly enhance the long-term potential of this investment.”
A study released this summer by Choice Hotels International saw strengthening valuations and financing for hotel acquisitions nationwide. Additionally, PKF Hospitality Research, one of the leading research firms in the hotel sector, is forecasting supply growth of less than 1 percent over the next 10 quarters due to a saturated market and properties that were recently under development but never completed.
A report by services firm Marcus & Millichap agrees. It shows that RevPAR is expected to grow by more than 3 percent this year, with more significant gains to come next spring as possible uncertainties in the market dissipate. “Room supply,” the report continues, “will grow at one of the slowest rates on record this year, and the slowdown in construction will persist well into 2012. Accordingly, even modest increases in room demand will translate to higher occupancy.”
The Crowne Plaza Tampa East is located at 10221 Princess Palm Ave. and features 30,000 feet of flexible meeting space, making it the only full-service property in the area with capability for large corporate events.