Peabody-Orlando Goes To Belz Partners

ORLANDO— With 50% interest in The Peabody Orlando, Belz Partners L.P. has acquired the remaining 50% owned by LCS Orlando 97 L.P. (comprised of The Carlyle Group and LaSalle Investment Management), transferring complete ownership of the 891-room, luxury hotel to Belz Partners. Jones Lang LaSalle Hotels (JLLH) advised on the sale. According to Arthur Adler, JLLH managing director, “The Carlyle Group and LaSalle Investment Management were ideal partners for Belz Partners, the owners and operators of the Peabody brand. During the term of partnership, significant strategic capital was invested in the hotel, and its operations were improved dramatically, which created significant value for the owners. The Peabody will be attached by 2003 to the Orange County Convention Center, which is undergoing a one-million-square-foot expansion. “The transaction was a win-win for both seller and buyer. The Carlyle Group and LaSalle Investment Management were able to realize a strong gain, while Belz Partners now have total ownership and operating control of the hotel and can realize the benefits of the doubling of the Orange County Convention Center and the benefits of a potential hotel expansion,” added Adler. It’s projected the enlarged conference center will generate two million incremental room nights annually, which is sufficient to fill more than 4,100 rooms daily assuming an average occupancy rate of 75 percent. JLLH svp Thomas Fisher noted, “The historical trends related to the enlarged Orange County Convention Center in terms of increased attendance, coupled with the current booking pace for the improved center, portray a very compelling case for a significant expansion of The Peabody, which Belz Partners is contemplating.”