Leisure destinations in high barrier to entry markets continue to be hot acquisition targets and is the driver behind news that investor Procaccianti Companies, Cranston, Rhode Island, has acquired three independent resorts in the Florida Keys for undisclosed prices.
The assets that will now be managed by Procaccianti’s hospitality management affiliate, TPG Hotels, Resorts & Marinas, include the Parmer’s Resort & Marina located on Little Torch Key, as well as the Hadley House and Fisher Inn – both located on Islamorada, Florida.
“In the hospitality sector, our acquisition/investment strategy over the past several years has focused on the assets and geographies that proved to be highly resilient throughout the pandemic,” Rob Leven, chief investment officer of Procaccianti Companies told HOTELS on Wednesday. “Upscale boutique and independent properties located in strong leisure destinations faired very well compared to urban markets. In addition to being a high barrier to entry market, south Florida is also very attractive as it provides seasonal revenue balance within our portfolio of independents located throughout the northeast. These three properties have strong fundamentals and we believe through our integrated management platform we can improve performance and maximize long-term value creation.”
The Fisher Inn Resort & Marina features 37 guest rooms, of which 15 were newly constructed in 2020. Similarly, the Hadley House has 37 guest rooms, along with a marina, and the deal also includes an additional residential parcel for future development. Parmer’s Resort & Marina on Little Torch Key, less than 25 miles from Key West but close to the beaches of Bahia Honda State Park, has a collection of cottages, suites and efficiency studios.
“With their built-in demand drivers, combined with our institutional management platform, we see exceptional opportunities for revenue growth and value creation as business and leisure travel further stabilizes in the wake of the pandemic,” said Mike Marshall, president and chief executive officer of TPG Hotels, Resorts & Marinas. Historically, TPG has managed some 500 branded, independent, upscale boutique hotels and marinas comprising more than 65,000 guest rooms in 37 states.