Hilton Garden Inn Annapolis Downtown
Energized by a six-year streak on the Inc. 5000 list of fastest growing private companies in America, OTO Development is determined to maintain – and indeed, increase – momentum.
OTO has long accelerated progress, in terms of properties and profits, by developing new hotels in high barrier-to-entry markets and expanding third-party management partnerships. To these two proven growth strategies, the company has added a third: purchasing – and repurposing – existing properties.
This new acquisition strategy focuses on underperforming hospitality assets in prime markets. The goal is to identify the source(s) of unmet potential and then implement change accordingly to maximize profitability. The process may be as simple as operational upgrades and aesthetic renovations or as complex as a total property retrofit.
“We research and aggressively pursue smart lodging investments with the strongest potential for strong economic returns,” says Corry Oakes, CEO of OTO Development. “Our niche has always been developing new product in tough-to-build markets – and that won’t change – but reinventing existing properties in strategic locations is proving to be an intriguing new avenue to drive growth.”
The positives of acquisitions can be plenty. This type of investment enjoys a lack of entitlement risk, for example, and a relatively quick deployment of capital. It eases the challenges of land availability by opening up different opportunities in site selection. What’s more, turning an old property into something new allows OTO to move fresh product into a market without creating additional supply.
The first example of OTO’s acquisition strategy is Hilton Garden Inn Annapolis Downtown, which opened in April 2018 following total redevelopment of an independent hotel in the heart of Maryland’s capital city. This creative upfit – noteworthy for location-specific design elements that celebrate the city’s rich naval history – earned the 2018 President’s Award from the Anne Arundel County Chamber of Commerce for promoting economic growth.
Now underway is OTO’s dive into the Florida Keys. The company purchased an old, but ideally located, Best Western in Key West. Built in the 1950s on seven ocean-front acres, this 100-room property is being transformed into a new Hampton Inn. While physical improvements are still under way, the change in management has already resulted in significant market share gains.