ORLANDO, Florida—Banyan Investment Group (BIG) announced the acquisition of the 213-room Castle Hotel, Autograph Collection by Marriott, in Orlando, Florida, for an undisclosed price. The hotel recently received an $8.2 million investment to improve guestrooms, public space, and the building exterior.
“Orlando, with its multitude of theme parks, golf resorts, outside adventures, and fine dining options, continues to be the number one destination for leisure travel and conventions in the country,” said Samir Yajnik, principal and executive vice president of investments, Banyan Investment Group. “We are bullish on the Orlando MSA, particularly the I-Drive submarket. The Castle Hotel is the only four-star Marriott product within walking distance of the convention center. It is ideally suited for upscale visitors looking to stay with one of the most trusted hotel companies in the world. With the increased traffic to the convention center, airport, and area attractions, as well as the expected opening of Epic Universe by Universal, the collective, positive impact on the hotel will be substantial, allowing the hotel to quickly take its place as the rightful market and segment leader. We believe the continued increase in demand for the submarket will drive increased cash flows at the property. It’s important to note that hotels re-price rates daily, and we believe that the investment offers a beneficial inflation hedge to our valued investors.”
The Castle Hotel is across the street from the under-construction Epic Universe, a 750-acre, $1 billion theme park expected to open in 2025, which will be the largest Universal Park in the United States and second-largest globally. The hotel also is adjacent to the 270-acre Lockheed Martin regional headquarters that employs 8,000 people and creates additional demand from defense contractors, government, and related industries.
The Autograph Collection hotel also will benefit from the continued growth of the Orlando International Airport, including the recently opened $2.8 billion, 15-gate Terminal C that caters to international travelers and is expected to increase the airport’s capacity by 10-12 million passengers annually. Additionally, Brightline High Speed Rail plans to open two stations in the area, Orlando International Airport, and Orlando Convention Center. With proximity to the hotel, guests can connect with Miami and other southern Florida stops such as Fort Lauderdale and West Palm Beach.