Excel Group Makes Strategic Acquisition in Coconut Creek’s Hospitality Market

In a significant move reflecting the robust investor interest in Florida’s hospitality sector, Excel Group, a private equity firm based in Washington, D.C., has successfully acquired two neighboring hotels in Coconut Creek for a combined price of $21.17 million. This transaction highlights the growing confidence in the region’s hospitality landscape.

Overview of the Acquired Properties

The acquisition includes:

• Residence Inn Fort Lauderdale Coconut Creek: An extended-stay property under the Marriott brand known for catering to business and leisure travelers.
• Hampton Inn & Suites Coconut Creek: A high-performing, limited-service hotel affiliated with Hilton.

Both properties are strategically situated along North State Road 7, making them attractive to a diverse array of guests—from corporate travelers to families and event groups.

Details of the Transaction

The hotels were purchased from entities connected to Check My Property, a California-based real estate investment firm with a focus on economy and midscale hotel assets across the nation. With a combined total of 211 keys, these hotels boast a blend of brand recognition, consistent occupancy rates, and potential for operational improvements in a region experiencing increasing year-round demand.

Key Highlights:

• Investment Value: $21.17 million
• Property Types: Extended-stay and limited-service hotels
• Total Rooms: 211 keys

South Florida’s Attractive Investment Climate

Excel Group’s acquisition is part of a broader trend as the firm expands into high-growth markets within the Sunbelt, particularly South Florida. The area is characterized by:

• Strong Population Growth: Continual influx of new residents enhances the demand for hospitality services.
• Infrastructure Investments: Ongoing developments improve accessibility and tourism appeal.
• Resilient Tourism Sector: Increasing visitor numbers strengthen the market’s viability.

A representative from Excel Group stated, "South Florida continues to be a prime target for institutional investment due to its demand diversity and favorable long-term fundamentals." This acquisition fulfills their strategy of targeting premium-branded assets that offer substantial upside potential.

Coconut Creek: A Prime Location for Hospitality

Coconut Creek is ideally located between Boca Raton and Fort Lauderdale, making it one of the most stable and commercially vibrant areas in northern Broward County. Nearby amenities contribute to increased demand for hotel accommodations:

• Retail Centers: Attract shoppers and leisure travelers.
• Business Parks: Serve as hubs for corporate activity.
• Residential Growth: Expands the local population, increasing the need for lodging.

Market Resilience Amid Challenges

Despite facing nationwide challenges in the commercial real estate sector—such as rising insurance costs and fluctuating interest rates—South Florida’s hospitality sector remains strong. The demand for hotel assets, particularly in suburban areas with limited new construction, continues to thrive.

Recent Trends:

• Increased Activity from REITs and Hedge Funds: Various institutional investors are diversifying into the resilient hotel market.
• Performance Stability: Hospitality assets maintain strong occupancy rates, signifying market resilience even in challenging times.

Excel Group’s Strategic Focus

With this acquisition, Excel Group reinforces its commitment to the Florida market. Known for owning and managing over two dozen hotel properties nationwide, the firm excels in acquiring and repositioning hospitality assets within tier-two and tertiary markets. Their approach typically includes:

• Capital Improvements: Enhancing property value through renovations.
• Operational Upgrades: Improving operational efficiency and customer experience.
• Rebranding Initiatives: Aligning properties with market expectations to maximize profitability.

Conclusion

The recent purchase of the Coconut Creek hotels not only strengthens Excel Group’s portfolio but also signals ongoing confidence in the long-term potential of South Florida’s tourism and business travel markets. As economic conditions evolve, so too does the landscape of investment opportunities in this vibrant region.

For more insights into investment trends in South Florida, check out Commercial Real Estate Insights and stay informed about the hospitality industry’s future developments.