Hotel development and investment company A&R Group has broadened its portfolio by acquiring the Fairfield Inn & Suites by Marriott in Destin, Florida, as part of its southeastern US growth plan.
The deal was capitalised with an $18m budget, which encompasses conventional senior debt financing provided by Pen Air Credit Union.
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A&R Group has announced plans for an extensive renovation of the hotel, set to start in the fourth quarter of 2025.
Expected to be completed by mid-2026, the refurbishment will encompass updates to the guest rooms, public areas, and exterior, ensuring the property meets Marriott’s latest brand standards.
The hotel will maintain operations under the Fairfield Inn & Suites brand, supported by a 24-year franchise agreement with Marriott, which provides access to Marriott’s worldwide distribution network and a loyalty programme with over 200 million members.
The Fairfield Inn & Suites by Marriott is located along the Emerald Coast Parkway, close to Henderson Beach State Park and the Destin Commons retail district.
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By GlobalDataA&R group development president Zach Hoyt said: “This acquisition aligns perfectly with our long-term strategy of investing in high-barrier-to-entry markets with strong year-round tourism and upside potential.
“Destin is one of the Gulf Coast’s premier destinations, and this hotel offers both stable in-place income and meaningful value-add opportunity.”
The acquisition of the Destin hotel increases A&R Group’s portfolio to more than 25 hotels across six states, including brands from Hilton, Marriott, and IHG.
This acquisition is said to be a key part of the company’s strategy to grow its portfolio in regions with strong tourism and high barriers to entry.
A&R Group CEO Ken Patel said: “Our firm is focused on creating long-term value for our partners by combining operational excellence with a disciplined investment strategy.
“We’re excited to bring that philosophy to the Florida Panhandle.”
