Monarch Alternative Capital LP, an investment firm with approximately $9.4 billion of assets under management, announced the purchase of three hotels in Orlando, right near the tourist district. Given the firm’s established reputation within the market, Monarch was able to acquire the newly-built, high quality properties located in Orlando submarkets adjacent to Monarch’s existing hotels at a discount to replacement cost in off-market transactions.
With these acquisitions, Monarch’s hospitality portfolio in Orlando now totals approximately 2,000 keys across seven properties.
Monarch purchased the Aloft Orlando and the Holiday Inn Express & Suites Orlando, both located in the Lake Buena Vista submarket within close proximity to Disney World. In addition, the firm acquired the TownePlace Suites Orlando located in the Universal Studios submarket. In aggregate, the three properties represent over 430 keys. Relative to other limited-service hotels, each asset offers a high-end room product, multiple food and beverage options, an outdoor swimming pool, and an on-site fitness center. In addition, the Aloft and Holiday Inn Express combined have over 2,700 square feet of meeting and banquet space, which can be used for additional events, special occasions, and business needs.
The three newly acquired properties are located near or along International Drive providing guests with easy access to nearby major attractions, including Disney World theme parks, the Orange County Convention Center, SeaWorld and Universal Studios. Both the Aloft and Holiday Inn Express are affiliated with the Walt Disney World Good Neighbor Hotel program, and the TownePlace Suites is a Preferred Universal Partner hotel, which permit the hotels to extend additional benefits to guests at Disney World and Universal theme parks, respectively. Monarch believes these acquisitions will further enhance its Orlando portfolio given the properties’ locations in desirable submarkets and elevated product offering.
“We remain very excited about the opportunity set in the Orlando market, and these recent hotel additions reflect our conviction in Orlando as a market that is well-positioned for recovery and continued growth,” Ian Glastein, Managing Principal and Co-Head of Real Estate at Monarch said. “Furthermore, this clustering of assets allows us to leverage our existing presence and drive supplemental revenue and cost synergies as we continue to scale our portfolio in the market.”
Monarch has partnered with HHM, an industry-leading hospitality management, investment, and development firm with over 185 hotels across 30 states, to operate and manage the portfolio.