Best Western Plus Orlando East- UCF Area

Investment Overview

The Best Western Plus Orlando East – UCF is a 70-room three story interior corridor upper midscale hotel built in 1998 and renovated in 2022 when it converted from a Comfort Suites to the Best Western Plus. The property is situated on 1.93 acres with 72 parking spaces with an I-3 county zoning which is an industrial zoning. Amenities include an outdoor pool, business center, breakfast area, workout facility, sundry center and meeting and event space. Construction is reinforced concrete. University of Central Florida: With a student body of nearly 70,000 students the University of Central Florida is a metropolitan research university located in Orlando, one of the most visited cities in the world. UCF benefits from a diverse faculty and staff who create a welcoming environment, a high quality of life, and opportunities to grow, learn and succeed. The University of Central Florida has the second largest on campus student body in the United States and is part of the Big 12 football conference. Central Florida Research Park (CFRP). The CFRP is a research part abutting the campus of the University of Central Florida. It is the largest research park in Florida sitting on over 1,000 acres, with 126 business partners and more than 10,000 employees.

Investment Highlights

• The Offering: Grizzard Commercial Real Estate is pleased to present the 70-room Best Western Plus Orlando East - UCF located at 12101 Challenger Pkwy in Orlando Florida. The property is being offered for sale at the fee simple price of $9,100,000. The property will be delivered unencumbered by management and debt.
• Seller Financing: Seller is offering 70% loan to value first mortgage financing with a 3-year loan term with balloon at an interest rate of 6.5%.
• Renovation Summary: Beginning in 2021 and 2022 the hotel underwent an extensive capital improvement program throughout the hotel rebranding from a Comfort Suites to a Best Western Plus. Common area renovations include new furniture and area carpets and flooring in the lobby, new front desk, updated sundry area as well as updating all amenities areas and breakfast area. In the guestrooms, the owner has purchased new case goods, soft goods, mattresses, painted the walls, new lighting and art work and installed new flooring throughout the property. Bathrooms have received new vanities, tile and flooring, mirror, and lighting.
• Current Operations: The property underwent a comprehensive renovation in 2021 and 2022 converting the hotel from a Comfort Suites to a Best Western Plus. During 2021 and 2022 the hotel revenue was far below traditional and market levels due to the renovation and out of order rooms. In 2023 the hotel began its reintroduction back into the marketplace and achieved near market occupancy but performed far below market ADR. Over the next twelve months management plans to grow ADR through revenue management as well increase occupancy by going after group business which it has not focused on since the rebranding to Best Western Plus.
• Value Add Opportunity: By implementing basic marketing and revenue management strategies not currently being used by current management a new owner has an opportunity to significantly increase both occupancy and ADR at this property. Current market trends are presenting additional opportunities for the smaller upper midscale hotels market in Florida. New management should focus on creating relationships in the local research park as well as the University of Central Florida to bring in group business into the hotel while also increasing ADR on the OTA’s through strict revenue management strategies.
• Brand Affiliation: The property has brand affiliation with Best Western International which has over 4,700 properties worldwide. Best Western is not a franchise but a membership which allows members to join or terminate on an annual basis.