Premier Location in one of South Florida’s Top Tourist Destinations

The Residence Inn Fort Myers is a 78-key hotel situated in a thriving commercial area, offering close proximity to various attractions and demand generators. These generators include the River District, Edison Mall, Luxe 8 Flix Cinemas, Eastwood Golf Course, Miromar Outlets, Southwest Florida International Airport, the Boston Red Sox and Minnesota Twins training facilities, and downtown Fort Myers. Additionally, the Hotel is conveniently located near popular beach destinations such as Sanibel and Captiva Island, as well as Ft Myers Beach. Over 500,000 visitors are drawn to the area every year to support Fort Myers’ famous art and cultural celebrations in the River District which have an economic impact of approximately $50 million and include the Edison Festival of Light, ArtFest, Fort Myers Film Festival, and the Southwest Florida Reading Festival. Tourism is one of Fort Myers’ largest industries employing one out of every five people. The city
receives approximately five million visitors annually, contributing to over $3.7 billion in visitor spending.

Strong Performance with Additional Upside Post PIP

The Residence Inn Fort Myers has normalized operations post Hurricane Ian and demonstrated strong topline performance with an impressive $173.11 RevPAR for the Trailing Twelve Month (“TTM”) period ending November 2023. Notably, RevPAR has exhibited a strong year-over-year growth rate of 32.4% in TTM November 2023. Despite being due for a renovation, strong top line metrics have allowed the Hotel to produce strong cash flows. Significant upside remains upon completion of a change-of-ownership PIP. The improved product offering combined with continued market growth expectations will likely result in RevPAR and NOI levels well exceeding in-place metrics.

High-Growth Submarket

The Fort Myers market, which encompasses all of Lee County, is centrally located among the Southwest Florida markets. Southwest Florida is considered to be stable and poised for exponential growth given increased tourism and migration in recent years. Further accelerated by the COVID 19 pandemic, Lee County has seen rampant migration by younger individuals and families due to the tax friendly environment. In 2022, the Cape Coral-Fort Myers MSA experienced 6.8% YoY growth. Continued growth is anticipated with Woods & Poole Economics predicting a 92% increase in residents for Southwest Florida over the next 40 years.