Liberty Hospitality Fund I LLC buys Holiday Inn Express & Suites

BUYER: LHF1 Bonita LLC (principal: Punit Shah), Bonita Springs
SELLER: FAC Hotel Limited Partnership LLLP
PROPERTY: 27891 Crown Lake Blvd., Bonita Springs
PRICE: $4.25 million

PREVIOUS PRICE: $5.75 million, April 2005
LAW FIRM ON DEED: Bond Schoeneck & King PLLC, Naples

PLANS, DESCRIPTION: The private equity real estate fund Liberty Hospitality Fund I LLC purchased the 108-unit Holiday Inn Express & Suites in Bonita Springs for $4.25 million.

The price equated to $39,352 per unit.

The hotel features a business center, outdoor swimming pool and laundry facilities. The new owner plans to renovate and reposition the asset later this year. It will be renovating common areas and adding a breakfast room and fitness center.

The Tampa-based investment firm Liberty Group of Cos. says the hotel was purchased for significantly below replacement cost.

“This was a good strong hotel brand that could benefit from our expertise in managing other hotel properties,” says Matthew Ram, an associate with the Liberty Group.

The Holiday Inn Express & Suites was the Liberty Hospitality Fund I's second purchase. It occurred as the fund became fully capitalized at $75 million. The fund, which focuses on acquiring upper mid-scale hotels, is scheduled to be fully invested over the next three years. It acquired its first hotel, the 125-room Candlewood Suites in Charleston, S.C., in late 2013.

“Access to capital has provided us a distinct advantage in acquiring hotels since we can offer a quick and certain close, something that few buyers can match,” Punit Shah, president and chief operating officer of the Liberty Group. “Liberty Hospitality Fund I allows us to continue expanding our hotel portfolio and creating operational efficiencies that add value to each of our investments.”

Liberty Group already owns the 80-unit Candlewood Suites in Fort Myers and the 75-unit Hampton Inn in Cape Coral.