Trinity Investments JV Buys Grande Lakes Orlando Resort
- Dec 11, 2018
A new joint venture, made up of funds managed by Trinity Real Estate Investments LLC and funds managed by Elliott Management Corp., has acquired the 409-acre Grande Lakes Orlando Resort. The luxury complex features two hotels, including a 582-key Ritz-Carlton and a 998-key JW Marriott, and a Greg Norman–designed 18-hole championship-caliber golf course.
Financials on the deal were not disclosed, and Elliott Management did not respond to Commercial Property Executive’s request for additional information. The Orlando Business Journal, however, reported that the acquisition was valued at about $900 million.
The property is only a short drive from Orlando International Airport, the Orange County Convention Center and popular theme park attractions. The resort includes 278,000 square feet of indoor and outdoor meeting space, 15 food and beverage outlets, a 40,000-square-foot spa with 40 treatment rooms, multiple swimming pools and additional sporting facilities.
Both hotels carry a AAA four-diamond rating. And although both properties have undergone multimillion-dollar renovation projects since 2015, the joint venture partners plan to implement a multi-year capital improvement program that will include guestroom renovations and upgrades to the resort’s ballroom, meeting spaces, water features and food offerings.
A booming destination
The Orlando area hit a record for visitors in 2017 and in so doing became the first-ever U.S. destination to surpass 70 million tourists.
The metro is looking at a 4 to 6 percent gain in guestroom count, based on roughly 7,000 guestrooms under construction as of mid-year, according to a second-half report from Marcus & Millichap. Occupancy remains strong, having jumped 280 basis points year-over-year to 79.7 percent in the second quarter. Meanwhile, ADR and RevPAR rose 5.7 and 9.4 percent, respectively, also according to Marcus & Millichap.
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