Overview
The acquisition of the Cambria St. Petersburg – Madeira Beach Marina (herein referred to as “Property” or “Hotel”) presents the unique opportunity to purchase a recently built, upscale-branded product with strong in-place cash flows in an optimal coastal submarket. The Hotel benefits from its premium location in Madeira Beach, with proximity to both strong and diverse demand generators including beaches and marinas (walking distance), John’s Pass Village (3.1 miles), VA Bay Pines Medical Center (2.5 miles), and a multitude of restaurants and shopping.
This highly competitive trophy asset is the newest Hotel in Madeira Beach. As the Property is strategically positioned in St. Petersburg’s high-barrier-to-entry market, the Cambria currently faces no new supply challenges. The Cambria St. Petersburg – Madeira Beach Marina represents a rare opportunity to enter a prime tourist market through a perfectly positioned asset.
Investment Highlights
- Highly Competitive Trophy Asset: There are a limited number of branded hotels in the Madeira Beach area. Those closest to the subject include the Courtyard Inn by Marriott, Holiday Inn Express and Double Tree Resort. Of these, the Courtyard by Marriott is the most proximate and is a waterfront facility, located just east of the subject. The Holiday Inn Express is located further east on the mainland and is not a waterfront property. The Double Tree is located in Reddington Beach and is located directly on the beach. There are other smaller resorts and hotels in the general area, but they are much older and not comparable to the Cambria.
- Accessible Location: The Property contains easy access to/from the mainland via the Tom Stuart Causeway. Guests also have access to the waterfront, including transient boat slips, watersports, sightseeing trips, etc. The Hotel has frontage on a deep water basin of Boca Ciega Bay, that leads to the Intracoastal Waterway, which ultimately provides access to the Gulf of Mexico.
- No New Supply Under Construction within the Entire Submarket: As of July, no Hotels have broken ground within the entire submarket. St. Petersburg.
- Room for ADR Growth: The Cambria is ranked 4 out of 5 in both ADR and RevPAR within its competitive set, with an ADR penetration of only 95.7%. The Cambria has the capacity to charge a higher ADR given the quality and age of this Hotel in comparison to its competitive set.
- Strong Food & Beverage Department: The Property features a full-service indoor restaurant and a rooftop bar that generate nearly $2M in additional revenue each year.
- Fee Simple Interest: The Property will be offered as fee simple, which will be extremely attractive to the investment community.
- Unencumbered by Management: The Property is being offered unencumbered by a management agreement, presenting a new owner with maximum control over the operations and activities of the Hotel allowing them to apply a more strategic marketing plan to drive revenue and impose strict cost control measures to ensure more efficient operations. Although unencumbered, maintaining current management would be the more favorable option for the new owner/operator. The Property currently has a strong management group that continues to outperform the market in terms of maximizing profit margins and maintaining the Hotel’s standard of quality.
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