Hodges Ward Elliott has been exclusively retained by SHR / Octo Capital (the “Sponsor”) to obtain a cash-neutral $21.5 million ($70,792 per key) fixed or floating rate loan at best available terms (the “Loan”) to refinance the fee-simple interest in the 303-key Four Points by Sheraton Orlando International Drive (the “Hotel” or the “Property”).
The Sponsor acquired the Hotel in August 2021 and completed a $5.2 million ($17,100 per key) Marriott Change of Ownership PIP, significantly enhancing the quality of the Property. Targeted upgrades included improvements to the exterior, outdoor pool and bar, corridors, back-of-house areas, and substantial MEP enhancements throughout the asset.
Strategically located along Orlando’s International Drive corridor—within close proximity to the area’s premier theme parks, including Universal Studios (5 minutes), SeaWorld (15 minutes), and Walt Disney World (15 minutes)—the Hotel has demonstrated continued financial momentum into 2025, highlighted by a 5.9% increase in TTM NOI from year-end 2024 through February 2025. With February 2025 TTM NOI of $2.3 million translating to a 10.9% debt yield at the requested proceeds, the Hotel is steadily gaining market share with Year 3 Pro Forma NOI of $3.1 million representing a healthy 14.4% debt yield.
Supporting the Sponsor’s projections is the highly anticipated grand opening of Universal’s Epic Universe on May 22, 2025. At full build out, the 2,000-acre new theme park will contribute an estimated $11.5 billion to Orlando’s GDP over the next decade while generating 14,000 jobs.
With 50 new attractions spread across four lands, including Super Nintendo World, Dark Universe, How to Train Your Dragon, Celestial Park, and an expanded Wizard World of Harry Potter, Epic Universe will draw millions of additional visitors from around the world.
The massive influx of lodging demand from this game-changing development will benefit the Four Points by Sheraton Orlando International Drive, which is located only ten minutes to the north. Additionally, third-party manager Aimbridge Hospitality is well-positioned to maximize operational performance at the Hotel given their expansive reach in the Orlando market and economies of scale.
FINANCING REQUEST
The Sponsor is seeking total loan proceeds of $21.5 million (55.7% LTC and 55.0% “As-Stabilized” LTV) to refinance the fee-simple interest in the Property on a cash-neutral basis. Based on the Sponsor’s all-in cost basis of $38.5 million ($127,063 per key), the requested Loan basis of $70,792 compares favorably to recent transactions for older properties averaging $157,000 per key (54.2% discount) and newer hotels averaging $224,000 per key (68.4% discount). Additionally, the Hotel has a strong track record of consistent performance, with February 2025 TTM NOI of $2.3 million resulting in a 10.9% debt yield. Looking ahead, the Sponsor is projecting Year 3 NOI of $3.1 million which equates to a healthy 14.4% debt yield.
Loan Performance
Investment Highlights
Recognized as the “Most Visited Tourist Destination in the US,” Orlando hosted 74 million visitors in 2023, just shy of its all-time record 75.8 million in 2019. The market benefits from surging population growth (four times the U.S. average), nation leading employment growth and a diversified corporate base. 2024 continued the positive trend in the market as Florida welcomed a record-breaking 142.9 million visitors, resulting in a 1.6% increase over the prior year. Orlando certainly participated in these gains, and 2025 is expected to record an even stronger year given the opening of Universal’s Universe in May.
The Hotel occupies a central location less than 900 feet east from the intersection of International Drive and Universal Boulevard, two of Orlando’s most heavily trafficked thoroughfares, and 1,100 feet south of Interstate 4. Originally constructed as the Quality Inn High Q, the 23-story tower gained its iconic gold stars in 1989, a striking feature visible from miles away. Around that time, the property was rebranded as the Sheraton Studio City Hotel, solidifying its place as a landmark in the Orlando skyline. In 2007, it transitioned once again, this time becoming a Four Points by Sheraton, continuing its legacy of hospitality and excellence. In addition to its prominent visibility, the Hotel is conveniently accessible to major local demand drivers including Universal Studios (5 mins), Lockheed Martin (7 mins), Epic Universe (10 mins), the 7 million SF Orange County Convention Center (10 mins), Sea World (15 mins), and Disney World (15 mins).
Universal’s Epic Universe Opening Poised to Transform Orlando
Construction is nearly complete on Universal’s newest 750-acre theme park, Universal’s EPIC Universe, and is scheduled to open on May 22nd, 2025. The park will be anchored by Super Nintendo World which has been a tremendous success at Universal Studios Japan.
EPIC Universe is the single largest demand generator to deliver in Orlando in over a generation. In contrast to expansion parks that have opened in Orlando (Harry Potter World, Star Wars, etc.) EPIC Universe is a completely new park on its own land. Historically, years in which major new attractions have opened have resulted in stellar RevPAR years for the surrounding hospitality market. EPIC Universe will create 14,000 additional jobs and roughly double the footprint of Universal’s Orlando theme parks.
Strategic Proximity to Universal’s Epic Universe
Universal’s Epic Universe, set to open in 2025, will be a game-changing addition to Orlando’s theme park landscape, positioned approximately 2 miles south of the existing Universal Orlando Resort. The Four Points by Sheraton Orlando International Drive benefits from a prime location less than a mile from Universal Orlando Resort, placing it within easy access of both destinations.
With Epic Universe just 3 miles away and an expected travel time of just 10 minutes by car, the Epic Universe is poised to drive significant demand for hotels in the surrounding area, reinforcing Four Points’ strong market positioning within the Orlando hospitality sector.
Robust Orlando Infrastructure Growth
There are more than $15 billion in infrastructure improvements underway in the Orlando market, including $2.4 billion I-4 Ultimate project, $3.5 billion Brightline Express Train (connecting Orlando and Miami by commuter rail), and the $4.1 billion expansion at Orlando International Airport (named 7th busiest airport in the world in 2021).
Easily Accessible Location – Now Accessible by High-Speed Rail
The Holiday Inn sits fewer than a 25-minute drive from the Orlando Brightline station, which allows rail access to Orlando from South Florida, home to more than 6.5 million residents. The Brightline offers modern, high-speed rail travel between Miami, West Palm Beach, and Orlando, with an expected expansion to Tampa by 2028. Reaching speeds of up to 125 miles per hour, the Brightline has quickly become a preferred mode of transportation for both residents of, and visitors, to South Florida.
Robust Corporate Demand with Strong Convention Calendar
The Orange County Convention Center (OCCC) is the second-largest convention center in the United States (behind McCormick Place in Chicago).The OCCC will host 140 events this year, with an associated economic impact of $2.4 billion, signaling the return of big conventions to the Orlando market. Over the next 18 months, the OCCC has business anticipated to bring over 1.3 million attendees, thereby generating sizable room nights during that period with anticipated future demand in the years thereafter.
Brand Overview
The Four Points by Sheraton Orlando benefits from its Franchise Agreement with Marriott and the expansive membership rewards program it brings to the Hotel.
Marriott International
Marriott International (NASDAQ: MAR) is the leader in global hospitality with a portfolio of 30 brands in 134 countries across approximately 9,300 properties and timeshare resorts and over 1.7 million rooms (as of YE 2024). The company’s YE 2024 worldwide development pipeline totaled more than 577,000 keys, with a record 123,000 gross room openings in the year.
Four Points by Sheraton
From big urban centers to airports to the beach to the suburbs, Four Points provides guests an authentic taste of the local market. With over 290 hotels in 46 countries, Four Points is experiencing record growth with 130 hotels in the pipeline. Four Points hotels offer comfortable guest rooms, equipped with productive work spaces and a welcoming lobby. The look and feel of Four Points is relevant to today’s independent traveler – modern but never trendy, practical yet stylish.
Bonvoy
Marriott Bonvoy is the world’s largest hotel loyalty program, with over 228 million members globally by the end of 2024. Bonvoy members are attracted to the variety of perks that drive strong brand contribution to bookings, which include earning and using points for stays, credits for services, free upgrades, and other membership-tiered incentives. These benefits can be used across Marriott’s more than 30 hotel brands across 9,300 destinations worldwide.
Sponsorship Overview
Songy Highroads - Sponsor
Songy Highroads LLC (SHR) is a commercial real estate firm specializing in the acquisition, renovation, development, and management of institutional-quality real estate projects. Founded in 1992 by principals David B. Songy, Perry M. Waughtal, and Todd W. Nocerini, the firm initially focused on acquiring office buildings at prices below replacement cost, capitalizing on opportunities arising from the overbuilding of the 1980s.
SHR expanded its operations throughout the Southeastern United States, relocating its headquarters to Atlanta in 1998. The firm’s portfolio encompasses over 5 million square feet, with investments totaling more than $2 billion across 50+ projects. Their expertise spans various sectors, including office buildings, hotels, and multifamily properties.
SHR has been particularly active in the hospitality sector, developing and managing a diverse range of hotel properties across key markets. The firm has delivered numerous high-profile hospitality projects, including developments under renowned brands such as Marriott, Hilton, and Hyatt. SHR specializes in adaptive reuse and ground-up developments, creating premium hotel properties that cater to business travelers and upscale leisure guests. Their strategic approach to hotel investments focuses on urban and mixed-use environments, where demand for quality accommodations remains strong.
Throughout its history, SHR has maintained an entrepreneurial spirit, enabling the company to recognize and seize urban-infill opportunities, primarily in the office and hotel markets. Each project is typically capitalized through a combination of equity provided by SHR and that of selected institutional or family office partners.
Aimbridge Hospitality - Manager
Aimbridge Hospitality is one of the largest and most dynamic third-party management companies in the U.S. With an award winning portfolio of over 1,500 hotels, the company operates across a full spectrum of property types in addition to independent luxury, boutique, and lifestyle hotels.
Aimbridge Hospitality currently manages approximately 80 hotels across the state of Florida. The company has its corporate headquarters in Plano, Texas with regional offices in Chicago, Illinois, San Clemente, California and San Juan, Puerto Rico.