Daytona Beach city officials confirm that the hotel's new owners, Pyramid Advisors LLC, a Boston-based hotel management and advisory firm, and Morgan Stanley Real Estate Fund of New York, will focus the renovations on the 436-room South Tower component of the hotel.
Pyramid and Morgan Stanley bought the Adam's Mark in December 2003 from the St. Louis-based parent of Adam's Mark for $54.1 million or about $75,520 per room, according to Volusia County real estate records.
"At that low price of $75,000 per room, the new owners certainly have plenty of wiggle room to upgrade this outstanding asset," a longtime Daytona Beach Realtor not associated with the property, tells GlobeSt.com. "Most new class A hotels of this category can't be built today for less than $100,000 per room," the source says.
A popular location for college students on their annual spring break festivities, Adam's Mark owners paid $1.1 million in 2001 to settle a discrimination lawsuit that alleged black guests were mistreated by the hotel staff during the annual Black College Reunion weekend. In 2002, the hotel completed a $53 million expansion that added a 310-room North Tower to the property.
The hotel was developed in 1989 as a 402-room Marriott property. When Marriott defaulted on its bank loan in 1994, Adam's Mark bought the asset for $20.6 million or $51,244 per room, according to Volusia County real estate records.
The Hilton Daytona Beach will become the third largest Hilton property in Florida after Orlando and Miami Beach. In nearby Daytona Beach Shores, FL, the Hilton flag has flown at a 214-room hotel since the early 1970s. But, as GlobeSt.com previously reported, the Hilton flag comes down in January when the hotel's owner, Noble House Hotels and Resorts of Kirkland, WA plans to rename the property The Shores Resort and Spa as it begins a $7 million renovation and refurbishing program.
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