South Korean casino operator Paradise Group has made its first acquisition in the United States after spending $26 million in order to purchase a 167-room hotel in downtown Orlando, Florida.
Responsible for the Paradise Casino Jeju Grand and the southern island’s Paradise Casino Jeju Lotte as well as casinos in Seoul, Busan and Incheon, Paradise Group bought the Embassy Suites By Hilton Orlando Downtown asset free and clear of debt from Connecticut firm HEI Hotels And Resorts through its local Clearwater-based Paradise America subsidiary.
According to a report from the Orlando Business Journal newspaper, the purchase was arranged through commercial real estate firm Holliday Fenoglio Fowler, which declared that Paradise Group now plans to institute a “significant property improvement plan to enhance the customer experience and the asset’s ability to compete in the market”.
“It’s exciting to see foreign capital flow into central Florida and the downtown Orlando submarket,” said Michael Weinberg from Holliday Fenoglio Fowler. “This [is] Paradise Group’s first United States investment so it was good to be able to facilitate the transaction with a new entrant into the market.”
Weinberg stated that the property will now be managed by BayStar Hotel Group, which is a privately-held company that specializes in hotel management, development and consulting services and known for its work with Hilton Worldwide Holdings and InterContinental Hotels Group.
Opened in 2000, the Embassy Suites By Hilton Orlando Downtown overlooks Lake Eola and offers eight executive suites alongside a pair of presidential rooms. Featuring 6,850 sq ft of indoor meeting space as well as a flexible 3,000 sq ft pre-function area, the hotel moreover comes complete with an outdoor pool, fitness center, complimentary evening reception and full-service Eola Cafe restaurant.
Earlier this month, Paradise Group released its financial results for the second quarter of 2016 showing a 147.6% increase year-on-year in consolidated operating profit to $29.14 million while net profit surged 113.6% to $24.03 million. The company additionally revealed that overall revenues for the three-month period had risen by 32.2% to $168.13 million largely due to the resurgence in foreign visitors previously put off by last year’s outbreak of Middle East Respiratory Syndrome in South Korea.