03/02/2022 | 03:38pm EDT
FORT WALTON BEACH, Fla., Feb. 28, 2022 – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of the Best Western Fort Walton Beachfront, a six-story, 100-room hospitality property located in Fort Walton Beach, Florida. The 1.41-acre property sold for above $23.6 million.
David J. Altman, Robert S. Hunter, and Leo Reilly, investment specialists in Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property on behalf of the seller, Ft. Walton Beach Hotel Group, Inc. The buyer, OTO Development LLC, based in Spartanburg, South Carolina, was secured and represented by Hunter, Altman, and Reilly.
“The seller originally built this hotel in 1998,” said Altman, first vice president investments. “After going through the height of the COVID-19 period and coming out on the other side with record revenues in 2021, the group decided this was the perfect opportunity to sell the hotel. During our marketing process, we generated approximately 20 competitive purchase offers from buyers throughout the country. This activity shows that there is a huge demand for well-performing assets in Florida, especially beachfront hotels.”
“The 12-month average revenue per available room (RevPAR) in the Florida Panhandle hotel market grew at an exceptionally strong 65.9% annual rate to achieve a RevPAR of $100.57. The Fort Walton Beach submarket exceeded this market rate by achieving RevPAR growth of 81.8% over 12 months. The Best Western’s competitive set, comprised of nine competitive properties, achieved a 12-month average RevPAR of $157.58. This growth shows that the Florida Panhandle, which was once an afterthought, continues to be a market that investors should keep an eye on,” said Altman.
“Fort Walton Beach is a high-barrier leisure destination positioned to benefit from sustainable RevPAR growth,” added Hunter, first vice president of investments. “Buyer demand for hotels in leisure markets is likely higher than ever, relative to the rest of the market. This sale process was one example.”
Located at 380 Santa Rosa Blvd., the Best Western Fort Walton Beachfront provides guests with direct beach access and private balconies overlooking the Gulf of Mexico. Amenities include offsite fitness center access at Gold’s Gym, a business center, an ocean-facing outdoor pool area, Cabana Bar, and live entertainment nightly in the Swizzle Stick Lounge.
Marcus & Millichap Inc. published this content on 28 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 March 2022 20:37:03 UTC.