Overview
The Kabani Hotel Group, as the exclusive representative of the seller, is pleased to present the Southern Oaks Inn St. Augustine for sale. Offered at $11,000,000, this 124-room, 2-story, exterior corridor hotel is located at 2800 N Ponce de Leon Blvd, St. Augustine, FL 32084, along one of the city's most prominent travel corridors.
Strategically positioned on U.S. Route 1 (Ponce de Leon Blvd), the property benefits from immediate access to Historic Downtown St. Augustine, Florida’s oldest city and one of the state’s top-performing high ADR leisure markets. The hotel draws year-round demand from a diverse mix of domestic and international tourists, group travelers, and regional events.
With a combination of strong in-place cash flow, excellent guest reviews, and absentee ownership, the asset presents a compelling opportunity for an investor or operator to unlock value through hands-on management, minor renovations, or potential franchise affiliation. Its high visibility, large room count, and irreplaceable location along a major corridor make it a rare acquisition in one of Florida’s most resilient and supply-constrained coastal markets.
Investment Highlights
- Prime Tourist Location: Located along N Ponce de Leon Blvd (U.S. 1), the property offers direct access to Downtown St. Augustine, beaches, attractions, and dining — drawing from year-round leisure and group demand.
- Absentee owners: Currently operated by absentee owners, presenting a clear opportunity for a hands-on owner/operator or local management team to drive revenue growth, control expenses, and improve margins.
- Strong Guest Reputation: The property enjoys excellent online reviews across major platforms (Google, TripAdvisor, OTA sites), reflecting consistent guest satisfaction, clean accommodations, and reliable service—supporting repeat bookings and strong RevPAR performance.
- High ADR Market: St. Augustine is one of Florida’s strongest ADR-performing secondary markets, supported by heritage tourism, low supply growth, and steady leisure travel. The area consistently outperforms comparable coastal markets on a RevPAR basis.
- Temporary Revenue Impact in 2024: A room revenue decrease in 2024 was driven by a 50-room renovation project from September to December, creating short-term disruption but enhancing long-term asset quality.
- Well-Maintained Asset: Originally built in 1973, the hotel has seen improvements over time and presents immediate operational stability.
- High-Barrier to entry market: St. Augustine’s historic character and zoning limitations create a low-supply growth environment, protecting RevPAR and occupancy levels long-term.
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