Holiday Inn & Suites Across from Universal Orlando
5905 S. Kirkman Road, Orlando, FL 32819
InSite Development Group, LLC (“Sponsor”) is proud to offer the opportunity to invest in the Holiday Inn & Suites Across from Universal Orlando (“Hotel” or “Holiday Inn”) located in Orlando, Florida. The Hotel is strategically located in the most highly prized leisure and convention destination in the United States. Orlando attracts more than 72 million visitors annually and boasts a variety of demand generators and proven economic fundamentals.
Property Highlights
- 390 hotel guestrooms, including 134 suites
- 10,109 square feet of meeting space
- Leased TGI Friday’s Restaurant
- 7.34+/- acres
- Prime location across from Universal Orlando
Projected Returns: 18.6% IRR // 2.14x Cash Equity Multiple // 5-year Hold
Location
The Resort is strategically located across the street from Universal Orlando with close proximity to International Drive, the Orange County Convention Center, SeaWorld Orlando, and Walt Disney World® Resort, which houses Magic Kingdom, Epcot Center, Hollywood Studios, Animal Kingdom and the newly designed and upgraded Disney Springs as well as other numerous other attractions.
Over the last 10 years, International Drive has undergone billions of dollars in developments and upgrades, bringing on new attractions such as the ICON Orlando at ICON Park, one of the tallest observation wheels in the U.S., world-class shopping, and an array of dining options.
The Orange County Convention Center (“OCCC”), the second largest convention facility in the country with just over 2.1 million square feet of exhibition space, is located less than 2 miles from the Resort. The OCCC was named the number-one meeting destination in the country by CVENT for the fifth year in a row.
Best-in-Class Sponsor
InSite Development Group, LLC is a vertically integrated real estate investment company. Through various InSite affiliates, InSite executes on the development, general contracting, day-to day operational management and licensing of real estate assets. InSite’s leadership team has completed over $1 billion in transactions over the past 15 years and currently owns, operates or manages assets in excess of $500 million of real estate throughout the southeastern United States.
Investment Highlights
Distinctive asset with desirable room mix
Holiday Inn & Suites across from Universal Orlando is located in Florida’s premier leisure and convention market. A mix of standard guest rooms and one- and two-bedroom suites provide maximum flexibility to deliver an exceptional guest experience and drive top line performance
Highly visible and accessible location
The Hotel is located at the intersection of Interstate 4 and Florida’s Turnpike and across the street from the main entrance to Universal Orlando. This provides visibility from the area’s most heavily traveled roads and convenient access to theme parks, entertainment, shopping, and dining in the area
Strong demand generators
Greater Orlando offers some of the best attractions, convention meeting spaces, top Fortune 500 companies and is recognized as the most visited city in the United States (72 million visitors 2017)
Attractive in-place debt
Current $34.9 million (62.7% LTC) CMBS loan is assumable with an attractive interest rate (4.4%) and maturity date in December 2024
Strong historical and projected performance
Current net operating income (NOI) is $4.7 million with a clear path to increasing through improved business mix. Holiday Inn & Suites performance improvement against the competitive set will be driven through a strategic renovation public spaces and guest rooms. NOI is expected to stabilize at $5.7 million in 2022
Macroeconomic Insulation from Attractive Basis
Our all-in basis at $143k/room is 28% below recent comparable market transactions, which are estimated at $197k/room all-in. This provides macroeconomic insulation with multiple attractive exit options and from continuous business plan optimization