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.

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.

A&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.”