A longtime owner sold the 170-key Quality Inn & Suites hotel in Cocoa Beach, a deal that may reflect greater interest among hotel investors in small and medium-sized Florida markets.
Crossway Inn, Inc., which had been the owner-operator of the hotel for 46 years, sold the property to CB Hospitality LLC.
Colliers International Hotel Group, which brokered the sale, said in a press release that the deal reflects “expanded interest for hotel assets in secondary and tertiary Florida markets.”
The Quality Inn is located a half block from the Atlantic Ocean on a 4.33-acre site at 3901 North Atlantic Avenue in Cocoa Beach.
“Unlike markets such as Miami … this region still has very low new supply due to its barrier island location and restrictive zoning that creates tremendous barriers to entry for most investors,” Colliers vice president John Wijtenburg said in a prepared statement. “This sale illustrates institutional capital is continuing to chase lodging, especially in Florida.”
Limited hotel construction in Cocoa Beach has contributed to higher room rates and occupancy at existing hotels.
Since 2014, the average daily rate for a hotel in Cocoa Beach has increased 22.7 percent, and the city’s hotel occupancy rate has grown to 72.6 percent from 62.2 percent. – Mike Seemuth