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Transforming Distressed Assets into High-Performance Returns

6825 Visitors Circle, International Drive – Orlando, FL

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Executive Summary: A Premier Value-Add Opportunity

We present a compelling opportunity to acquire and reposition a distressed 265-key hotel asset located on Orlando's premier International Drive corridor. Currently closed due to code violations, this property represents a rare chance to enter one of America's most resilient hospitality markets at a significant discount to replacement cost.

The asset's prime location, combined with proven historical performance and strong market fundamentals, positions this investment for exceptional returns. Our comprehensive redevelopment strategy includes full renovation, code compliance remediation, and strategic rebranding to unlock the property's true potential.

With an estimated total investment of $17 million and a projected stabilized value exceeding $25 million, this opportunity offers sophisticated investors a path to substantial equity creation within 12-18 months of acquisition.

$12M

Acquisition Price

Below market value

$25M

Projected Value

Post-renovation

45%

Estimated ROI

Within 18 months

12mo

Timeline

To stabilization

Deal Structure: Clear Path to Value Creation

Acquisition

$12 Million

Approximately $65,000 per key – significantly below market comparables of $95,000-$120,000 per key in this submarket

Renovation & Compliance

$5 Million

Comprehensive renovation including code compliance, FF&E upgrades, and system modernization

Total Investment

$17 Million

All-in basis creating substantial value spread and competitive advantage in the market

Projected Equity Gain

$8 Million

Conservative 45-50% ROI based on stabilized operations and comparable market valuations

This capital structure provides significant downside protection while positioning the investment for exceptional risk-adjusted returns. The acquisition basis of approximately $64,000 per key compares favorably to new construction costs exceeding $150,000 per key and recent sales of stabilized assets in the $95,000-$120,000 per key range.

Strategic Location: The Heart of Orlando's Tourism Corridor

Located at 6825 Visitors Circle in Orlando's International Drive district, this property occupies one of the most strategically valuable positions in American hospitality. International Drive represents the epicenter of Central Florida tourism, hosting over 75 million visitors annually and generating more hotel revenue per linear mile than virtually any corridor in the United States.

Universal Studios

Direct connection to Universal Orlando Resort – one of the world's premier theme park destinations, driving consistent year-round demand

Convention Center

Walking distance to Orange County Convention Center, North America's second-largest convention facility with 2+ million attendees annually

ICON Park

Adjacent to ICON Park entertainment complex featuring dining, retail, and attractions that generate substantial pedestrian traffic

Market Fundamentals

  • 75+ million annual visitors to Greater Orlando
  • Highest concentration of hotel rooms in Florida
  • Multiple demand generators within 2-mile radius
  • Year-round visitation with minimal seasonality
  • Strong corporate and group business alongside leisure

Competitive Advantages

  • Walkable access to major attractions and dining
  • Excellent visibility from International Drive
  • Established transportation infrastructure
  • Proven submarket with limited new supply pipeline
  • Barriers to entry protect existing assets

Asset Overview: 265 Keys of Untapped Potential

Previously operated as Monreale Express I-Drive Orlando, this 265-key property features the classic exterior corridor configuration preferred in the Florida market. The asset includes guest rooms, a resort-style pool area, lobby with front desk operations, and breakfast service area – all core amenities expected by the midscale traveler.

The property is currently closed following code violations issued by the City of Orlando related to deferred maintenance and compliance issues. However, these violations represent correctable conditions rather than fundamental structural deficiencies. Our detailed engineering assessment confirms the building's core systems are sound, requiring updates and compliance work rather than wholesale replacement.

This distressed status creates the investment opportunity – allowing acquisition at a basis that provides substantial cushion for comprehensive renovation while maintaining attractive returns. Once compliance work is completed and the property is fully renovated, we can pursue re-licensing and strategic rebranding under a recognized flag.

Property Configuration

  • 265 guest rooms
  • Exterior corridor design
  • Resort-style pool
  • Lobby and front desk
  • Breakfast service area
  • Surface parking

Required Improvements

  • Fire and life safety systems
  • Electrical code compliance
  • ADA accessibility upgrades
  • Exterior safety remediation
  • HVAC system modernization
  • Elevator updates

Market Performance: Exceptional Fundamentals Drive Returns

Smith Travel Research (STR) data for the International Drive midscale and economy segment demonstrates the extraordinary strength of this submarket. Market-wide occupancy consistently ranges between 72-76%, with average daily rates (ADR) of $125-140 generating revenue per available room (RevPAR) of $90-100. These metrics significantly outperform the broader Orlando market and most comparable U.S. markets.

More compelling is this specific asset's historical performance prior to closure. Operating data shows occupancy rates of 94-96% – approximately 20 percentage points above the market average – demonstrating the property's appeal and strategic location advantages. At an ADR of $125.20, the asset generated RevPAR of $123.88, representing a 30% premium to the competitive set average.

Market Trends

December 2024 STR data shows continued strength with double-digit RevPAR growth year-over-year. The I-Drive corridor has demonstrated remarkable resilience and growth trajectory.

ADR Growth

From 2018 to 2023, average daily rates increased from $63 to $140+, representing 122% growth and significantly outpacing inflation and broader market trends.

Seasonal Performance

Peak season (March-July) delivers occupancy exceeding 90% while maintaining stable weekend demand year-round, minimizing revenue volatility.

Renovation Strategy: Modernization for Maximum Returns

Our comprehensive renovation and redevelopment plan addresses all critical systems, compliance requirements, and guest experience elements. This turnkey approach ensures the property reopens as a competitive, modern asset capable of commanding premium rates while maintaining operational efficiency. The renovation scope has been carefully calibrated to deliver maximum value while respecting disciplined capital allocation principles.

01

Compliance & Life Safety

Complete remediation of all code violations including fire suppression systems, emergency lighting, electrical upgrades, and ADA accessibility improvements throughout the property

02

Guest Room Renovation

Full renovation of all 265 rooms including new FF&E packages, modern bathroom fixtures, luxury vinyl plank flooring, LED lighting systems, and contemporary design aesthetic

03

Building Systems

Comprehensive HVAC system upgrades for energy efficiency and guest comfort, elevator modernization, plumbing infrastructure improvements, and telecommunications infrastructure

04

Exterior & Amenities

Complete façade refresh with new paint and signage, pool deck renovation and equipment upgrades, enhanced landscaping, and exterior lighting for improved curb appeal

05

Technology Integration

Implementation of keyless entry systems, property management system upgrades, guest WiFi infrastructure, and energy management systems for operational efficiency

06

Rebranding & Launch

Strategic flag selection and franchise agreement execution, grand reopening marketing campaign, and operational ramp-up to stabilized performance levels

Project Timeline

1

Months 1-2: Acquisition & Permitting

Close transaction and secure all necessary permits and approvals

2

Months 3-5: Core Systems

Complete compliance work and major building system upgrades

3

Months 6-9: Interior Renovation

Execute guest room and public space renovations

4

Months 10-12: Opening Preparation

Staff hiring, training, and soft opening leading to grand reopening Q4 2026

Financial Projections: Conservative Underwriting, Exceptional Upside

Our financial analysis models both conservative and optimistic operating scenarios based on current market conditions, historical property performance, and comparable asset benchmarking. Even under conservative assumptions, the investment delivers exceptional risk-adjusted returns. The optimistic case, while requiring stronger execution, remains well-supported by market data and the asset's historical performance.

Conservative Scenario

78%

Occupancy

Stabilized performance

$150

Average ADR

Competitive positioning

$117

RevPAR

Strong market performance

Annual Revenue: $5.5 Million

Net Operating Income: $1.8 Million

Stabilized Value (10% Cap): $18 Million

Exit Value (Brand Conversion): $25 Million

Optimistic Scenario

83%

Occupancy

Historical achievement

$170

Average ADR

Premium positioning

$141

RevPAR

Market-leading performance

Annual Revenue: $6.2 Million

Net Operating Income: $2.1 Million

Stabilized Value (10% Cap): $21 Million

Exit Value (Brand Conversion): $25 Million+

Projected Equity Gain

$8 Million based on conservative assumptions and market-supported exit valuation of $25 million against total investment of $17 million

Return on Investment

45-50% ROI within 12-18 months of acquisition, representing exceptional risk-adjusted returns for institutional capital

Value Creation

Multiple expansion through operational improvements, brand affiliation, and market repositioning drives significant value beyond basis

Exit Strategy: Multiple Paths to Liquidity

This investment offers institutional investors multiple exit pathways, providing flexibility to optimize returns based on market conditions and portfolio objectives. Both strategies deliver compelling returns while addressing different investment horizons and capital requirements.

Renovate & Reflag Strategy

Complete full renovation and rebranding under major hospitality flag (Wyndham, Choice, Red Lion). Stabilize operations achieving 10-12% cap rate on cost basis. Execute cash-out refinancing to return investor capital while maintaining ownership for long-term cash flow generation. Alternatively, position as core asset for institutional buyer seeking stabilized, branded product in premier market.

Renovate & Sell Strategy

Execute comprehensive renovation and operational stabilization plan. Achieve 6-12 months of stabilized operating history demonstrating sustainable performance metrics. Market the asset to hospitality REITs, institutional buyers, and private equity groups seeking turnkey, cash-flowing assets in high-growth markets. Target sale price of $25 million+ based on comparable transactions, realizing full equity gain and providing early exit for investors.

Market Timing Considerations

Current market conditions favor value-add hotel investments with near-term exit potential. Transaction volume for stabilized midscale assets remains robust, with institutional buyers actively seeking quality inventory in proven markets. Cap rates for stabilized, branded assets in the International Drive submarket typically range from 7.5-9.5%, supporting our conservative valuation assumptions.

Buyer Universe

  • Hospitality-focused REITs seeking geographic diversification
  • Private equity firms with hotel operating platforms
  • High-net-worth family offices targeting stable cash flow
  • Regional hotel operators expanding portfolio presence
  • Franchise brand companies seeking owned/managed assets

Investment Highlights: Exceptional Risk-Adjusted Returns

This opportunity combines the fundamental strengths of Orlando's hospitality market with a compelling value-add structure that creates significant downside protection while offering exceptional upside potential. The combination of below-market acquisition basis, proven location, and strong market fundamentals positions this investment for success across multiple economic scenarios.

Below-Market Basis

Acquisition at approximately $64,000 per key – 35-45% below replacement cost and recent comparable sales, creating immediate value upon stabilization

Premier Location

International Drive represents America's most active hotel corridor with 75+ million annual visitors, multiple demand generators, and limited new supply

Proven Performance

Historical operating data demonstrates 20+ point occupancy premium over market average, validating asset's competitive positioning and appeal

Clear Repositioning Path

Defined renovation scope, brand affiliation opportunities, and regulatory pathway provide confidence in execution timeline and budget

Exceptional Returns

Conservative projections deliver 45-50% ROI within 18 months with $8 million equity creation on $17 million total investment

Flexible Exit Options

Multiple liquidity pathways including refinancing, institutional sale, or long-term hold for cash flow generation provide portfolio flexibility

Join Us in Transforming Opportunity into Performance

Partner with experienced hospitality investment professionals to execute this compelling value-creation strategy in one of America's premier tourism markets.

Bella Vista Building Group | TT Investment Group

Delivering institutional-quality returns through disciplined real estate investment and operational excellence.