The expansion of the Margaritaville Orlando Resort Hotel is to be financed through a $98.39 million loan, which was secured by the Boca Raton-based real estate investment and development firm, Encore Capital Management. Concord Summit arranged for the loan from Starwood Property Trust, on behalf of Encore. This loan also covers the existing construction debt on the senior and mezzanine project.
Encore intends to use the additional capital received to expand the Margaritaville Orlando Resort Hotel by adding 75 new guest rooms to its east wing. Based on industry standards, this 298,000-square-foot,186-room hotel might require more than $30 million for the expansion. The construction is scheduled to start by the end of the year and the completion time is set for the end of 2022.
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Located at 8000 Fins Up Circle, the 186-key Margaritaville Orlando Resort Hotel sits in a prime spot near Disney World, this hotel has had a relatively strong occupancy in the Kissimmee market even after the disruptions of the pandemic.
The President and CEO of Experience Kissimmee, DT Minich, spoke highly of the project. Minich said the expansion of the Margaritaville Orlando Resort Hotel is good news, as the demand for such accommodation is expected to increase especially during peak times throughout the school year.
CEO of Encore, Art Falcone, expressed his excitement over the hotel expansion project and the company’s collaboration with their lending partner, Starwood Capital. He said Starwood had recognized the high performance level of the property till date. Falcone also said, “We are happy to have them on board as we grow the hotel, adding 75 rooms to accommodate our loyal and growing Margaritaville guests.”
Two other companies taking part in the expansion of Margaritaville Orlando Resort Hotel include Davenport Consulting Group as the architect, and Dave Schmitt Engineering as the engineer. According to Falcone, Encore is going to be the builder for the Margaritaville Orlando Resort Hotel expansion.
A member of the Concord Summit team, O’Grady who was also supportive of the hotel expansion project and he said, “The owners have planned the resort’s expansion carefully and enhanced the brand significantly.”
