Okaloosa Island’s Best Western hotel sells for nearly $24 million

OKALOOSA ISLAND – The six-story, 100-room Best Western Fort Walton Beachfront Hotel at 380 Santa Rosa Blvd. was sold to a new owner.

Officials at commercial real estate brokerage firm Marcus & Millichap Inc. recently announced that the 1.4-acre property has sold for more than $23.6 million.

David Altman, Robert Hunter and Leo Reilly, investment specialists from Marcus & Millichap’s Fort Lauderdale office, had the exclusive listing to market the property for the seller, Ft. Walton Beach Hotel Group Inc., according to a press release.

The buyer, Spartanburg, SC-based OTO Development LLC, was secured and represented by Hunter, Altman and Reilly.

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“The vendor originally built this hotel in 1998,” Altman said in the press release. “After coming through the peak of the COVID-19 period and coming out on the other side with record revenues in 2021, the group decided this was the perfect opportunity to sell the hotel.

“During our marketing process, we generated about 20 competitive purchase offers from buyers across the country. This activity shows that there is a huge demand for performing assets in Florida, especially beachfront hotels.”

The six-story, 100-room Best Western Fort Walton Beachfront Hotel is located at 380 Santa Rosa Blvd. on Okaloosa Island.

Altman also said the 12-month average revenue per available room (RevPAR) in the Florida Panhandle hotel market grew at an exceptionally high annual rate of 65.9% to reach a RevPAR of $100.57.

“The Fort Walton Beach submarket exceeded this market rate by achieving 81.8% year-over-year RevPAR growth,” Altman said. “Best Western’s competitive set, comprised of nine competitive properties, achieved an average 12-month RevPAR of $157.58. This growth shows that the Florida Panhandle, once an afterthought, continues to be a market investors should keep an eye on.

The Best Western Fort Walton Beachfront offers guests direct beach access and private balconies overlooking the Gulf of Mexico. Amenities include access to the off-site Gold’s Gym fitness center, business center, outdoor gulf-facing pool, Cabana Bar, and nightly live entertainment at the Swizzle Stick Lounge.