Illinois-based NexGen Hotels recently acquired the Holiday St. Petersburg West for $18.75 million, company president Chris Patel confirmed Tuesday morning.
Pinellas County property records state the company closed on the 129-room hotel Nov. 15. A limited liability corporation linked to the transaction secured a $12.91 million mortgage through Optimum Bank.
The overall sales price for the property at 1200 34th St. N. equates to about $145,349 per key. According to its website, NexGen Hotels is an “independent owner, operator and third-party management company operating both select and full-service properties.”
“We like Florida’s west coast,” Patel told the Catalyst. “We have a few assets up in the Panhandle, and we just want to continue our growth in Florida overall. It’s a big growth opportunity.”
According to property records, the hotel last sold in November 2021 for $11.8 million. The 74,685-square-foot facility had a $10.1 million just-market and assessed value in 2022.
The facility’s amenities include recently remodeled rooms, an outdoor resort-style heated pool and whirlpool spa, a fitness center, a grab-and-go marketplace and a meeting space. Its restaurant and bar, 34th North, offers breakfast and dinner with poolside and room service.
The hotel’s website states it is “St. Petersburg’s newest and most modern Holiday Inn.” The facility borders the North Kenwood and United Central neighborhoods to its east and south, respectively.
Patel noted the hotel was recently renovated but said his company plans to “spruce up” the lobby and pool area. “Just a little better ambiance, some new furniture,” he added.
Patel said NexGen officials visited the area before purchasing the property. “It’s very relaxing,” he said. “I was surprised to see how much leisure demand there is, even from Canada.
“I didn’t know that many people are flying down for their vacations.”
Founded in 2007, NexGen Hotels operates 19 properties in seven states. Its website includes 13 hotels scattered throughout the Midwest, with two in the Florida Panhandle.
Patel noted the company purchased another hotel in Venice last week. He said NexGen would continue exploring opportunities throughout the state.
“We’re still pretty locked up to do one acquisition in southern Florida,” Patel said.
According to Kona Equity data, the company employs 21 people and averages $3.8 million in annual revenue. St. Louis-based Genuine Hospitality Group will manage the St. Petersburg property.