Information on the Target

The Hampton Inn Tampa East (Casino Area), a 74-unit limited-service hotel, was sold for $9.65 million on May 15, 2025. This property, located at 11740 Tampa Gateway Blvd., features modern amenities and has undergone a complete renovation in 2023. Its strategic position allows for convenient access to Downtown Tampa, popular leisure attractions, the cruise port, and a significant amount of office and industrial real estate in the vicinity.

Industry Overview in Florida

The hotel industry in Florida, particularly in the Tampa area, has seen a resurgence in recent years, driven by a steady influx of tourists and a growing local economy. The state's favorable climate, vibrant cultural scene, and recreational activities make it a top destination for both leisure and business travelers. Tampa itself has experienced considerable population growth, resulting in increased demand for accommodations.

The I-4 corridor, which runs through Tampa, has garnered attention from national investors due to its robust job growth and significant corporate relocations. These factors have contributed to rising revenue per available room (RevPAR) and have positioned the region as a lucrative market for hotel investments.

Moreover, the Tampa hotel market benefits from substantial public and private investments aimed at infrastructure development, further enhancing its appeal. Rising consumer confidence and increased travel expenditures have established a favorable environment for hospitality providers.

The Rationale Behind the Deal

The decision to acquire the Hampton Inn Tampa East (Casino Area) was influenced by the property’s unique position in a high-demand market known for its liquidity and investor interest. The full renovation completed in 2023 presented a turn-key opportunity for KMD Hospitality Management, making it an attractive investment.

Additionally, the rising costs of property improvement plans (PIP) and construction have heightened the value of fully renovated properties. KMD Hospitality's acquisition reflects confidence in the future growth potential of the Tampa market, supporting their business model that emphasizes quality acquisitions.

Information About the Investor

KMD Hospitality Management is a Tampa-based investment firm focused on enhancing the value of hotel properties through strategic improvements and exceptional management practices. With a strong local presence, KMD has a keen understanding of the Florida hospitality market and a commitment to providing high-quality services to guests.

The company's expertise and local knowledge position them well to capitalize on the growing demand for hotel accommodations in Tampa, particularly in thriving submarkets such as Tampa East.

View of Dealert

From an investment perspective, the acquisition of Hampton Inn Tampa East (Casino Area) by KMD Hospitality appears to be a sound decision. The property's recent renovation and strategic location within a burgeoning market aligns well with current trends favoring turn-key hotels in areas with high visitor demand.

Given the ongoing population growth and the influx of both corporate and recreational visitors, the potential for consistent revenue generation exists. This, combined with the rising costs of construction and renovations, enhances the attractiveness of acquiring a fully operational and updated hotel.

Furthermore, the continued public and private investment within the Tampa region suggests that the market will remain competitive and lucrative for the foreseeable future. Hotels positioned in such markets are likely to see sustained RevPAR growth as demand for short-term lodging increases.

Therefore, KMD Hospitality's purchase is not only backed by solid market fundamentals but also reflects a proactive approach to seize opportunities in a rapidly evolving landscape, marking it as a potentially excellent investment in the hospitality sector.

View Original Article