Hotel sales boom in Pinellas County as investment keeps coming
By Breanne Williams
Tampa Bay Business Journal
Published: Mar 18, 2022

Pinellas County had two major hotel transactions within days of each other, highlighting the continued demand for hospitality investments in Tampa Bay.

The sales come at a time when tourism is once again setting records in Tampa Bay. Pinellas County is seeing record-breaking numbers. January saw the highest average daily rate the county has ever had at $156, compared to all previous January months, Steve Hayes, CEO and president of Visit St. Pete/Clearwater told Spectrum Bay News 9.

February’s record-breaking monthly ADR was $215, which is the highest in the tourism agency's history. The February occupancy rate was 79.4%. It was higher than 2021 but lower than before the pandemic began, the report said.

Here's a closer look at two recent transactions:

The Postcard Inn on the Beach

The Postcard Inn on the Beach at St. Pete Beach sold for $83 million in a joint venture partnership between LCP Group and Safanad, both based in New York, according to a deed filed on March 9 with Pinellas County. The Postcard Inn has 196 rooms, 300 feet of frontage along the Gulf of Mexico, a restaurant, a lobby café and 3,880 square feet of indoor/outdoor terrace space.

The beachfront resort, located at 6300 Gulf Blvd., was sold by Procaccianti Cos., a subsidiary of Rhode Island-based TPG Hotels, Resorts & Marinas, according to Pinellas Couty property records. The sale price breaks down to $423,469 per key.

“Postcard Inn exhibits a rare combination of highly sought-after investment characteristics,” Tim Fuzesi, managing director of Safanad, said in a statement. “Resilient historical cash flows coupled with upside value potential through incremental investment and market growth in an irreplaceable location on the St. Pete Beach beachfront.”

The new owners intend to have “a comprehensive renovation of the asset to further modernize the guest rooms and enhance the food and beverage offerings,” according to LCP. Records with the county show the group took out a $72.25 million mortgage from Carbon Capital VII LLC.

Fairfield Inn & Suites by Marriott St. Petersburg Clearwater

A Canadian Investment Firm purchased the Fairfield Inn & Suites by Marriott St. Petersburg Clearwater in an off-market transaction for $8.7 million.

The 82-room hotel, located at 3211 Executive Drive in Clearwater, has a business center, fitness center and a pool and is approximately two miles from the St. Petersburg-Clearwater International Airport. The sale price breaks down to approximately $106,097 a key.

A deed filed in Pinellas County shows the buyer is Tooraz Hospitality LLC. Bryan L. Gipson, director for HTL Hospitality Advisors, represented the seller, sourced the buyer and was the only broker involved in the sale. The sale was part of HTL Hospitality Advisors’ off-market platform, according to a release from HTL.

"The Fairfield Inn & Suites St. Petersburg was not listed for sale, not exposed to the open market and the seller desired to transact in a confidential environment,” Gipson said in a release. “Thanks to our extensive hotel investor database, we identified the buyer and obtained pricing that was highly attractive to the seller."