R+reaf Acquires Two Hotels in Fort Pierce, Florida and Surfside Beach, South Carolina
RREAF Holdings LLC, a private real estate investment and development firm based in Dallas, TX, announced the acquisition of their Beachside Hotel Portfolio. The portfolio includes Hutchinson Island Plaza Hotel in Fort Pierce, Florida and the Holiday Inn Oceanfront in Surfside Beach, South Carolina.
The portfolio totals 203 keys with both assets in iconic beachfront locations that demonstrate some of the strongest performance among hospitality markets. For example, Holiday Inn Oceanfront is located within a short distance to Myrtle Beach, which attracts over 17 million visitors annually with a $7 billion estimated impact on tourism and the community with an additional $2.2 billion in labor impact. VISIT FLORIDA also recently shared that vacation rentals through the end of 2021 are trending over 42% higher than 2019 across Florida and seat capacity on domestic flights is nearly 4% higher.
RREAF will implement a significant capital improvement plan at the properties by adding amenities including splash pads, interactive kid's suites, a guest activities desk and a tiki bar for hotel guests and beachgoers. By investing capital, time and labor into the assets, RREAF will upgrade the guest experience by increasing the quality and quantity of amenities and modernizing the properties to take advantage of the excellent locations. The improvements will also elevate the hotels to best-in-class in their respective markets.
"The Beachside Hotel Portfolio fits perfectly within our beachfront hospitality acquisitions strategy," said Mitch Provosty, Chief Financial Officer at RREAF Holdings. "We are one of the most active buyers and developers of beachfront hotels and resorts in the Southeast with properties throughout the region and are actively pursuing new investments in premier drive-to leisure-based destinations."
RREAF partnered with Innisfree Hotels who will manage the properties for the partnership. Innisfree is a best-in-class operator of beachfront hotels and resorts. The firm has a history of working with national brands like Innisfree Hotel's, including Holiday Inn, Best Western Hotels, Choice Hotels, and more. The firm will explore an option to upgrade Holiday Inn Oceanfront to amore premium brand-level flag and looks forward to sharing the plans, once finalized.
"The beachfront hospitality sector, within real estate, has seen exponential growth in the months following the pandemic to the likes of which the asset class has never seen," said Kip Sowden, CEO of RREAF Holdings. "Our beachfront hospitality portfolio has experienced record setting numbers over the past 18 months. We see the same opportunity to improve the guest experience on these acquisitions to satisfy the rising demand of leisure travel in the Southeast."
Both hotels have had recent updates that RREAF will build off with its capital improvement plan. Hutchinson Island Plaza Hotel's dock was recently refurbished to provide guests with additional space to fish all day and night with underwater lights, which provide pristine, round-the-clock views of local manatees, snook and other marine life. Holiday Inn Oceanfront had $7 million in renovations including 4,500 square feet of meeting space, an outdoor pool, an on-site bar, and a fitness center to welcome leisure guests, corporate groups, and weddings.