MIAMI—Although we've seen blockbuster hotel sales like the $717 Peabody Hotel sale in Orlando last year, smaller investors are also looking at the hotel segment as a safe haven for cash. The latest example is the sale of a Country Inn & Suites in Destin, FL.

David M. Greenberg, a vice president investments, and David Altman, an associate, in Marcus & Millichap's Ft. Lauderdale office, had the exclusive listing to market the property on behalf of the seller, a private investor from Kansas. The hotel sold for $4.7 million which represents $56,024 per room. M&M also secured and represented the buyer, a private investor from Alabama.

“The combination of strong industry performance, increased availability of capital, and attractive interest rates make hospitality investments particularly attractive to buyers,” says Greenberg. “High consumer confidence has increased travel and demand for rooms and hotel operations have improved significantly and are forecasting strong gains in revenues/profits in 2014 and 2015.”

The County Inn & Suites is an 83-room, three-story, select service hotel constructed in 1997. The hotel is conveniently located near Destin Commons, an upscale outdoor lifestyle center, the beach, and several country clubs. The Country Inn & Suites is located at 4415 Commons Drive E in Destin, FL.

“The seller of this particular hotel was an out-of-state owner who built the property as a Country Inn & Suites in 1997,” says Altman. “The deal represented an excellent opportunity for a hands-on owner/management company to improve its current operations and maximize the returns. The buyer plans to capitalize on the hotel's high-barrier-to-entry location by extensively renovating the property and repositioning it as another brand.”