SunTrust Arranges $50M for Purchase of Dual-Branded Marriott Hotel

Key International is the new owner of a 255-key property in Clearwater Beach, Fla., which incorporates both a Residence Inn and a SpringHill Suites.
Dual-branded Marriott at 309 Coronado Drive
Dual-branded Marriott at 309 Coronado Drive (Image courtesy of SunTrust Commercial Real Estate)

SunTrust Commercial Real Estate, of Atlanta, has arranged $50 million in financing for Key International’s acquisition of a dual-branded Marriott hotel in Clearwater Beach, Fla.

The Residence Inn and SpringHill Suites is a combined seven-story, 255–key property. Key International has been managing the hotel since its opening in August 2017. The seller was Clearpoint Lodging LLP, a Key International spokesperson told Commercial Property Executive.

Of the $50 million loan, SunTrust funded $30 million and Valley National Bank, of Wayne, N.J., funded $20 million, according to a SunTrust spokesperson.

Shawn Gracey, executive vice president of hospitality for Key International
Shawn Gracey, executive vice president of hospitality, Key International (Image courtesy of Key International)

Clearwater Beach is a thriving business and leisure destination,” Shawn Gracey, executive vice president of hospitality for Key International, told Commercial Property Executive. “The property’s bayfront location is unparalleled, and the dual-branded element allows us to expand our footprint in the market, while providing accommodations suited for a variety of traveler types.” He also noted that this is the first dual-branded property in Key International’s portfolio.

Leslie Ann Maduro, senior vice president at SunTrust CRE
Leslie Ann Maduro, senior vice president, SunTrust CRE (Image courtesy of SunTrust Commercial Real Estate)

Clearwater Beach is home to some of the top-ranked beaches in the country and is one of the top ten hotel markets in the U.S. Each of the brands at this property caters to unique traveler types,” Leslie Ann Maduro, senior vice president at SunTrust CRE, said in a prepared statement.

In addition to such high-profile Miami projects as 400 Sunny Isles, 1010 Brickell, the Mint and The Ivy towers, as well as the Nobu Eden Roc Resort Miami Beach, Key International owns and manages a diverse collection of hotels under the Marriott, Hilton and InterContinental Hotels Group flags.

A booming market

Earlier this year, Key International paid $31.5 million to acquire the 130-key Hampton Inn & Suites Destin in Destin, Fla. The seller of the recently renovated hotel was McNeill Hotel Co.

Dual-branded Marriott at 309 Coronado Drive
Dual-branded Marriott at 309 Coronado Drive (Image courtesy of Key International)

RevPAR in the Clearwater market has risen steadily since 2012, from $73.66 to $106.68 earlier this year, according to a May 2018 report from The Plasencia Group. Over the same period, ADR increased from $116.03 to $146.55.

In Florida overall, the report states, “Hotel and resort operating performance since last September has been positively impacted from Hurricanes Irma and Maria, and Florida continues to benefit from prolonged disruption in the Caribbean and Puerto Rico.”

On the investment sales side, TPG says, there is “a heavy appetite for waterfront hotels and resorts.”