Washington, D.C.-based private equity firm Excel Group has made a significant investment in Broward County’s hospitality sector, acquiring two adjacent hotels in Coconut Creek for $21.17 million. The move highlights strong investor confidence in the region’s growing tourism and business travel markets.
Strategic Acquisition in Coconut Creek
Excel Group’s latest acquisition includes the Residence Inn Fort Lauderdale Coconut Creek and the Hampton Inn & Suites Coconut Creek. These two properties, totaling 211 rooms, are situated on North State Road 7. The deal was finalized with entities affiliated with Check My Property, a California-based real estate investment firm.
Key Takeaways
- Investment Focus: Excel Group is targeting high-growth Sunbelt markets, with South Florida being a prime area of interest due to robust population growth and infrastructure development.
- Property Strengths: The acquired hotels boast strong brand recognition, consistent occupancy rates, and potential for operational improvements.
- Market Position: Coconut Creek is identified as a demographically stable and commercially active submarket, benefiting from proximity to retail centers, business parks, and residential growth.
South Florida’s Hospitality Appeal
Despite broader challenges in the commercial real estate market, South Florida’s hospitality assets have demonstrated resilience. Suburban locations, in particular, are experiencing increased demand, with limited new supply contributing to favorable investment conditions. This acquisition by Excel Group aligns with a trend of institutional investors, hedge funds, and family offices diversifying into the hospitality space.
Excel Group’s Strategy
Excel Group specializes in acquiring and enhancing hospitality assets in secondary and tertiary markets. Their typical strategy involves capital improvements, operational upgrades, and potential rebranding to increase asset value and cash flow. This latest purchase further strengthens their Florida portfolio, signaling continued optimism about the region’s long-term economic vitality.