Loci Capital and HHM Hotels have sold The Islander Resort, a 139-room property in Islamorada, Florida. The partners acquired their interest in 2021 and later renovated the resort’s accommodations, dining and outdoor amenities. The 22-acre property also received approvals for potential future expansion, which Loci said helped attract buyers. Financial terms and the buyer were not disclosed in the announcement.
Key takeaways
The sale concludes a multiyear investment focused on repositioning the independent Florida Keys resort.
- The resort has 25 two-bedroom bayside townhomes and 114 oceanside bungalows.
- Improvements included renovated accommodations, a new oceanfront restaurant and upgraded guest amenities.
- The partners acquired the property through Loci’s inaugural opportunistic fund in January 2021.
A pandemic-disrupted deal led to the investment
Loci and HHM sourced the opportunity after the original sale process was disrupted during the COVID-19 pandemic. The partners acquired the property at what Loci described as an attractive basis, with favorable seller financing, betting on the Florida Keys’ long-term appeal and the resort’s potential for improvement.
HHM Hotels held an ownership stake alongside Loci from the initial investment through the sale. The firms paired capital improvements with operational changes as they repositioned the resort.
Renovations reshaped the resort
The work covered all 139 accommodations: the 25 two-bedroom townhomes on the bayside and the 114 bungalows along the ocean. The partners also added Drift, an oceanfront restaurant, and enhanced outdoor activities and other guest amenities.
Loci said the owners secured entitlements for future expansion as part of the repositioning. Damien Greenwood, Loci’s head of hospitality, described the sale as the result of nearly six years of asset management and said the expansion potential helped make the property attractive to buyers.
Sale reflects Loci’s investment strategy
Loci said the transaction supports its efforts to sell investments and return capital to investors amid challenging capital markets. The firm pointed to acquisition pricing, execution of its business plan and partner selection as central to its approach. The announcement did not provide the sale price, identify the buyer or disclose investment returns.
Based in Florida, Loci invests in middle-market real estate opportunities across the Southeast. HHM Hotels manages and invests in hotels and resorts across the United States and Canada, including independent properties and hotels affiliated with major brands.
- Loci Capital Sells The Islander Resort in Islamorada, Yahoo Finance.