Gencom Pays $100M for FL Hotel Portfolio
- Jan 07, 2019
Gencom has expanded its footprint in Florida with the joint venture acquisition of a two-property hotel portfolio along the barrier island of St. Pete Beach, just outside St. Petersburg in metropolitan Tampa. The hospitality investment firm spearheaded a partnership that purchased The Beachcomber Beach Resort & Hotel and The Grand Plaza Beach Hotel & Beach Resort from Excel Hospitality Inc. for $100 million.
Grand Plaza, a high-rise property, occupies roughly 3.7 acres at 5250 Gulf Blvd. The 156-key hotel encompasses 8,000 square feet of meeting space and four food and beverage outlets, including the only revolving rooftop restaurant and lounge to be found in the State of Florida. A quarter-mile away, Beachcomber sits on a 6.3-acre site at 6200 Golf Blvd. The two-story hotel features 102 guestrooms and two restaurants. Together, the properties include 450 linear feet of frontage along the Gulf Coast.
Global hospitality company Benchmark, which has had a strategic management partnership with Gencom since merging with a Gencom affiliate in 2016, is set to lead a $24 million repositioning of Grand Plaza and Beachcomber and manage the assets as well.
Gencom relied on internal representation in the transaction, while an HFF team—Daniel Peek, Preston Reid and Wyatt Krapf—worked on behalf of the seller.
Investor interest in the metropolitan Tampa hospitality market remains strong, bolstered by positive fundamentals. The occupancy rate is 72.4 percent, a near record for the market, according to a 2019 CBRE forecast. Additionally, Tampa experienced an average growth rate in RevPAR of 8.1 percent from 2013 to 2018, placing the city in the eighth position on the list of metros with the highest RevPAR growth rate.
Buyers aren’t just looking at the area’s latest statistics. They’re keeping an eye on the big picture. “The Tampa Bay region continues to be a magnet for hospitality investment, drawn by its vibrant, diverse economy and tremendous leisure and recreation amenities,” Peek said in prepared remarks.
Images courtesy of HFF