ORLANDO SW CELEBRATION AREA

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1 ORLANDO SW CELEBRATION AREA ORLANDO, FLORIDA HFF (Holliday Fenoglio Fowler, L.P.) is pleased to exclusively offer the opportunity to acquire the Holiday Inn Orlando SW Celebration Area Hotel, a value-add asset at a deep discount to replacement cost. OFFERING SUMMARY Holliday Fenoglio Fowler, L.P. ( HFF ) a Florida licensed real estate broker.

2 Investment Summary Holliday Fenoglio Fowler, L.P. ( HFF ) a Florida licensed real estate broker, is pleased to announce that it has been exclusively retained to offer investors the opportunity to acquire the fee-simple interest in the Holiday Inn Orlando SW Celebration Area (the Property or Hotel ). The Hotel is a 444-room full-service hotel in Orlando, FL, in immediate proximity to world-class tourism destinations and the nation s top hotel demand generators. The Holiday Inn Orlando SW Celebration Area is located directly on U.S. 192/Irlo Bronson Highway and is an official Walt Disney Good Neighbor full-service hotel just 2.5 miles from Walt Disney World Resort, which welcomes more than 50 million visitors annually and is the flagship location of Disney s worldwide theme park empire. The theme park is rapidly expanding with current and future developments including the Disney Springs transformation, a 14-acre Star Wars land, an 11-acre Toy Story land, and Pandora The World of Avatar. Disney recently introduced demand-based pricing at its Florida theme parks, which will help drive demand to days that are typically slower for the parks, as well as the hotels and retailers in the area. The Hotel is also within a short drive to an abundance of leisure and corporate demand generators which provide a base for healthy yearround operating fundamentals, including the Orlando International Airport and Orange County Convention Center - both of which are currently being renovated and expanded. Downtown Orlando, one of the fastest growing CBD s in the United States, is located less than 25 minutes northeast of the Property. With the current franchise agreement expiring in 2017, a new investor has the option to create their ideal boutique or branded lodging concept with a blank slate, keep the Holiday Inn Brand, or implement a dual brand concept utilizing the separate towers on the property. Offered unencumbered by management, the Hotel possesses upside as an investor may leverage his or her expertise to take full advantage of the Property s established base of business, resort attributes, excess land, and ideal proximity to Disney and other world-renowned attractions. The offering represents a rare opportunity to acquire an asset that is priced well below replacement cost and is ideally positioned to take advantage of Orlando s exceptional population, tourism, and job growth. Address: 5711 W. Irlo Bronson Memorial Hwy, Kissimmee, FL Guest Rooms: Function Space: Amenities: 444 Rooms 3,743 SF Outdoor Pool & Kids Pool Whirlpool Fitness Center Business Center Complimentary Wi-Fi Game Room Playground Theme Park Shuttles 2 HOLIDAY INN ORLANDO SW - CELEBRATION AREA

3 Holiday Inn Orlando SW - Celebration Area Playground Meeting Space Outdoor Pool and Kids pool HOLIDAY INN ORLANDO SW - CELEBRATION AREA 3

4 Investment Highlights Excellent Location In the Most Visited Destination in the U.S. The Holiday Inn Orlando SW - Celebration Area is located on US-192 less than two miles east of Interstate 4 in the heart of Orlando s tourist corridor. Orlando is the #1 most visited city in the U.S. with over 66 million visitors in 2015, a 5.5 percent increase from A record 33 million room nights were sold in Orlando in Orlando is home to 7 of the 20 most visited theme parks in the world, and 4 of the 10 most visited water parks, mostly Disney properties. With 2.1 million square feet of exhibition space, the Orange County Convention Center makes Orlando one of the world s most flexible and expansive meeting destinations. As of January 2015, there were over 800 events with an estimated 11.9 million attendees booked through the year 2035 that will generate approximately $22.1 billion in economic impact during this timeframe. Additionally, Orlando International Airport had 38.5 Million passengers in In order to meet growing demand, the airport is undergoing a $3.1 Billion expansion and renovation, including new gates, which will allow for capacity of nearly 50 million passengers. Proximity to Major Demand Drivers Due to the Hotel s central location and proximity to Interstate 4, guests of the Hotel are within a short drive to Walt Disney World Resort as well as Orlando s other major demand drivers including the Convention Center, Universal Studios, SeaWorld Orlando, LEGOLAND, and the Orlando Premium Outlets, to name a few. There is currently an arms race between the major theme parks in Orlando to attract new visitors and retain market share. This increased spending on development will significantly benefit the surrounding hotels and businesses, including the Holiday Inn Orlando SW - Celebration Area. Several of the new developments that are expected to significantly increase visitation in the coming years are included below: DISNEY SPRINGS: The transformation of Downtown Disney is currently underway and will nearly double the dining, entertainment, and shopping experiences. The project began in April 2013 and is expected to be completed in mid DISNEY STAR WARS THEMED LAND: Announced in August 2015, the new attraction, based on the Star Wars franchise that recently grossed over $2 billion worldwide at the box office with the release of The Force Awakens, will encompass 14 acres at Disney s Hollywood Studios and is estimated to be completed in When completed, it will be Disney s largest single themed land expansion ever. DISNEY TOY STORY THEMED LAND: Also announced in August 2015, the 11-acre Toy Story themed land based on the Toy Story animated film series- one of the most critically acclaimed trilogies of all time. A fourth Toy Story film is currently being created and is expected to debut in The Toy Story themed land is only expected to be built in the Orlando park, unlike many attractions that are being built at both the Orlando and California parks. DISNEY AVATAR THEMED LAND: Animal Kingdom is also in expansion mode, with the Pandora The World of Avatar land being constructed and expected to open in It will also be one of the largest expansions in the park s history once completed. UNIVERSAL ORLANDO: Universal is set to open Skull Island in 2016 ahead of the remake of the motion picture release. In 2017, Universal will open Volcano Bay, a 53-acre destination water park. In February 2016, Comcast Corp., the parent company of Universal Orlando Resort, confirmed the company paid $130 million for 475 acres of land in Orlando s tourist corridor. The land is located less than ten miles northeast of the Holiday Inn Orlando SW and is rumored to be a future location of a third Universal theme park in Orlando. SEAWORLD ORLANDO: In early 2016, SeaWorld Orlando debuted Mako, a shark-inspired, 4,760 feet long roller coaster that is located in front of the park s Shark Encounter attraction. The ride has a top speed of 73 mph and a drop from 200 feet, making it the fastest, tallest, and longest thrill ride in Central Florida. FUN SPOT: Fun Spot recently announced a long-term development master plan that includes six themed areas under an overarching Americanas theme that will be applied across the entire park. The plan incorporates a mini-water park, new food and beverage partners, and roller coasters. Fun Spot also completed a $20 million renovation in HOLIDAY INN ORLANDO SW - CELEBRATION AREA

5 Investment Highlights Interstate 4 (108,000 AADT) Internationa l Drive (12,40 (20,000 AADT) Falcons Fire Golf Club Osc eol 192 W Irlo Bro nso nm em ori al H wy 0 AADT) (48,50 0A ap ark wa y (1 9,5 00 AA DT ) AD T) Disney Good Neighbor Hotel The Holiday Inn Orlando SW Celebration Area is an official Walt Disney Good Neighbor Hotel. Being a Walt Disney World Good Neighbor Hotel means offering value, convenience and quality to every Central Florida visitor. There are currently only 22 Hotels in the Orlando area that pass Disney s stringent criteria for this designation. Well-Appointed Amenities The Hotel s ideal mix of amenities makes it a perfect destination for leisure and business travelers alike. Guests enjoy access to the business and fitness centers while children relish in the Hotel s kid friendly amenities including the large outdoor pool, kids pool, playground, and video game room. The Hotel has several food and beverage options including Trattoria Café (home to an onsite Pizza Hut Express) and Chianti s Lounge, the lobby bar which offers a full menu and daily drink specials with indoor or outdoor poolside seating available. With more than 4,000 SF of function space and a professional sales and catering staff, the Hotel is also an ideal wedding and events venue. HOLIDAY INN ORLANDO SW - CELEBRATION AREA 5

6 Investment Highlights Trattoria Cafe Dominant Brand and Distribution System Holiday Inn is a full-service hotel chain within the InterContinental Hotels Group (IHG) family of brands. IHG is one of the world s leading hotel companies, located in nearly 100 countries and territories across the globe. Holiday Inn hotels are known across the globe for comfort, value, and dependability. As the world s most recognized hotel brand, Holiday Inn hotels host 100 million guests annually, thereby proving the popularity of the brand. In fact, 9 out of 10 travelers have stayed at a Holiday Inn hotel globally, more than any other hotel brand. Additionally, IHG markets online in 16 languages and maintains 12 call centers with service in 14 language. The brand has exceptionally strong recognition among Latin American and European tourists, one of the fastest-growing segments of travelers visiting Florida and specifically the Orlando tourist corridor. Established Base of Business The Property was converted from a Travelodge to a Holiday Inn in 2007 at a cost in excess of $10.8 million. Since that time, the current Owner has shown a strong commitment to maintain the physical integrity and aesthetics of the Property. As such, the Hotel has built a strong base of business and has maintained excellent QA scores and guest satisfaction. A new owner stands to benefit from the Hotel s spectacular reputation and repeat customer base, as well as the ability to drive incremental revenue through thoughtful renovations and strategic initiatives. Priced Below Replacement Cost The Holiday Inn Orlando SW Celebration Area represents an opportunity to acquire a well-performing asset in the booming Orlando market at a fraction of the price of new construction. As operating fundamentals continue to rapidly improve in this area of Orlando, the Hotel is wellpositioned to take advantage of the market growth and highly attractive operating margins. 6 HOLIDAY INN ORLANDO SW - CELEBRATION AREA

7 Value Enhancement Opportunities Rebranding or Dual-Branding Strategy Representatives from InterContinental Hotels Group ( IHG ) have expressed interested in a dual-branding strategy at the Property. The north tower is equipped with a porte-cochere that is under-utilized and there is the potential to add a new brand in the north tower and convert the under-utilized space to a second entrance, resulting in a better guest experience and increased revenue. One of the dual-branding strategies in discussion is to convert the north tower to a Candlewood Suites brand. This dual-branding strategy has the potential to maximize revenue management and tap into incremental business that favors the extended stay product of the Candlewood Suites brand. Additionally, the current franchise agreement expires in September 2017, allowing an investor to explore additional branding scenarios outside of the InterContinental group of brands. The Hotel is also being offered unencumbered of management, providing complete operational flexibility and potential upside for a new owner/operator. Expand Laundry Operation to Include Additional Area Hotels The Hotel currently provides laundry services to the Best Western Lake Buena Vista - Disney Springs Resort Area and the on-site laundry facility has the space and machinery to expand this operation. An investor has the potential to capture additional revenue by providing laundry services to other area hotels or restaurants. Expand Food and Beverage Outlets There is an opportunity to expand/reconfigure the current Food & Beverage operation at the Property or add a third party restaurant concept (similar to the Applebee s restaurant at the Holiday Inn Resort Lake Buena Vista) in place of the current administration offices, which can be relocated elsewhere on Property. The expansion of the Food & Beverage operation would allow the Hotel to continue to drive this incremental revenue and keep more guests on the Property for breakfast, lunch, dinner, and drinks. HOLIDAY INN ORLANDO SW - CELEBRATION AREA 7

8 Value Enhancement Opportunities Development of Unused Area There is a large area on the northern edge of the parcel that is currently being used for bus parking and provides a great opportunity for development. An entrepreneurial investor could explore the option of developing a seniors housing, workforce housing, or similar concept that would drive incremental revenue. If one of these uses proved to be the highest and best use for the Property, an investor could eventually redevelop and convert the entire parcel to this use, including the Hotel. Another strategy that could add value to the vacant area on the northern edge of the Property is to incorporate a sports field concept. The Osceola County Tourist Development Council has established as its #1 priority making Osceola County the Amateur Sports Capital of the World. The project is a joint marketing campaign in collaboration with ESPN and Disney. The Hotel is located less than 10 minutes from Disney s ESPN Wide World of Sports and benefits greatly from the thriving amateur sports tourism business in the Orlando area. An addition of a sports field for play or practice on the Property would help attract additional demand as well as the potential to drive incremental revenue through field rentals or onsite events. Outparcel Fronting US-192 There is a large area on the southern edge of the parcel fronting US-192 that is currently being used as additional surface parking. There is an opportunity to convert this space to an outparcel and lease it out to a third party or create an in-house retail concept. Several concepts that may fit well with the dynamics of the Property include an ice cream parlor, coffee shop, or bank branch/atm, among others. Increase Access from Seralago Blvd There are currently two access points to the Property, both of which are located along US-192. Seralago Blvd., a north-south thoroughfare connecting Osceola Pkwy to US-192, is located less than 150 feet to the east of the Property. An access road could be created to provide additional ingress and egress to the Property from Seralago Blvd. The additional ingress and egress could be especially beneficial if a dualbranding strategy was implemented in the north tower, allowing guests of the north tower easier access to the entrance of the Hotel. Opportunity to Develop Unused Parcel Seralago Blvd HOLIDAY INN ORLANDO SW - CELEBRATION AREA

9 Market Overview Orlando MSA The Orlando MSA, which is comprised of Orange, Seminole, Osceola, and Lake County, is the 26th largest metro area in the United States and the 3rd largest MSA in the state. With a resident population of more than 2.4 million, Orlando s population growth of 47.2% since 2000 is more than 50% higher than Miami, Tampa or Jacksonville s, and nearly three times the growth rate of the U.S. over the same period. The Orlando MSA is expected to continue to outpace the state and national average over the next five years, with projected growth of 7.6%. With a median age of 37.3, metro Orlando also has the youngest population among Florida s three largest metro areas. Orlando was the #1 city for job growth in the U.S. for 2015, according to the Bureau of Labor Statistics. The region added 52,200 jobs in the 12 months ending December The count means the region added an average of close to 150 jobs per day in 2015, with almost all major industries participating. The data confirmed Orlando s position as the country s leading job growth center in 2015, as has been reported in several recent media rankings. Year-over-year employment growth in 2015 came in at 4.6 percent. The 2015 total is Orlando s highest annual gain since 2004, extending a run of recent growth that now brings total net gains since early 2010 to almost 215,000 jobs, far surpassing the 120,000 lost during the recession. One in five jobs in the region in December 2015 did not exist in early In 2015, 66.1 million people visited Orlando, growing 5.5 percent from 2014 and solidifying Orlando s position as the most visited destination in the nation. Orlando is home to 7 of the 20 most visited theme parks in the world, and 4 of the 10 most visited water parks. All of the major Orlando theme parks are currently undergoing aggressive expansions, which will help to continue Orlando s dominance as the theme park capital of the world. Orlando International Airport had 35.7 Million passengers in In order to meet growing demand, the airport is undergoing a $3.1 Billion expansion and renovation, including new gates, which will allow for capacity of nearly 50 million passengers. 2.4 MILLION Residents in Orlando MSA #1 CITY FOR JOB GROWTH IN THE U.S. 66 MILLION VISITOR IN 2015 #1 MOST VISITED CITY IN THE U.S. HOLIDAY INN ORLANDO SW - CELEBRATION AREA 9

10 ORLANDO SW CELEBRATION AREA ORLANDO, FLORIDA ADDITIONAL INFORMATION If you have any questions or require additional information, please contact any of the individuals below. hfflp.com ORLANDO 300 S. Orange Avenue Suite 1250 Orlando, FL T: F: TAMPA 101 East Kennedy Boulevard Suite 3905 Tampa, FL T: F: MIAMI 1450 Brickell Avenue Suite 2950 Miami, FL T: F: INVESTMENT ADVISORS MICHAEL WEINBERG Managing Director PRESTON REID Associate Director DEBT PLACEMENT SCOTT WADLER Associate Director ANTHONY FROGAMENI Analyst ASHLEY ROSENBERG Analyst HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.