The Capri Inn is the new name for Trianon Old Naples, an upscale boutique hotel that sold for more than $24 million this month.
The Capri Inn, 955 Seventh Ave. S., Naples, is undergoing renovations to its 58 rooms as it joins the Opal Collection, an assortment of 26 luxury accommodations in unique destinations in the eastern United States. The Edgewater Beach Hotel in North Naples is in the Opal Collection, as are 20 properties in Florida and a half dozen others in New England and New York.
Olde Naples Grand Hotel Inc. sold the three-story Trianon Old Naples to 955 Naples LLC of Florida for $24,451,850, according to the special warranty deed filed Nov. 1 with the Collier County Clerk of Courts. Property records show that Olde Naples Grand Hotel purchased the 1.2-acre former residential property for $425,000 in October 1996. The hotel, built in 1997, is more than 35,000 square feet.
The new buyer is owned by Ocean Properties Ltd., a Delray Beach company that also plans to co-develop the proposed Old Naples Hotel property on the site of the former Plaza on Third Street in Old Naples. A representative of Ocean Properties could not be reached for comment.
The deal this month was brokered by Robert Taylor and Sophia Pittaluga from the Miami office of Hunter Hotel Advisors, a leading investment advisory firm exclusively focused on the hotel industry. An executive vice president of Hunter Hotel Advisors, Taylor said the Naples hotel didn’t stay on the market for long.
“It was kind of quiet, confidential offering,” said Taylor, who also brokered the $156 million sale of the Inn on Fifth in downtown Naples earlier this year between longtime Naples entrepreneur Phil McCabe and Maryland-based Pebblebrook Hotel Trust.
“The sellers of the Trianon knew about (the Inn on Fifth sale) and just said, ‘Do you have any groups that weren’t successful on that bid?’ and we just quietly went to the two groups. You don’t want to be disruptive of the operation so it was just very quiet.”
The recent transaction underscores that 2022 has become the year of hotel sales in Southwest Florida, with the sale of other significant properties such as the Naples Grand Beach Resort and the Inn of Naples. Not much competition exists for limited properties in Old Naples, near the Gulf and west of U.S. 41, Taylor said.
“I think Naples is a very unique market that investors from around the country recognize how valuable it is,” he said. “Naples is like Aspen, where you have extreme wealth, and it continues to grow. Like the Four Seasons is coming in, Naples is just evolving because it’s so wealthy and it’s in Florida so the weather is consistent and the barriers to entry are pretty significant. I think people — investors and people in the business — see that and it’s a good investment.”
Taylor expects renovation at the former Trianon to tweak and increase the quality. “But the wealth is there to pay for the rooms if they give them the service and the product that they’re looking for. The neighborhood will support whatever pricing they put out there,” he said.
The 25-year-old hotel just two blocks south of Fifth Avenue South remains open for business. Its website shows King Standard View rooms starting at $259 per night this month and $399 for Friday and Saturday stays.
The website for Trianon Old Naples no longer exists, but the Opal Collection’s site promotes The Capri Inn. “Whether you’re visiting the Paradise Coast for a romantic getaway or a relaxed family trip, you’ll be delighted with our immaculately furnished accommodations, oversized bathrooms, and terraces or balconies,” the website promises.
Selling 30 hotel properties in Florida for a combination exceeding $662 million, 2022 has been a record year for hotel sales for Atlanta-based Hunter Hotel Advisors, which also has offices in Los Angeles and New York as well as Jacksonville, Miami and Orlando. However, Taylor doesn’t expect that trend to continue in 2023.
“I just think interest rates going up are the biggest headwinds we have,” he said. “If and when they come down, then I’m sure hotel transaction activity will increase because values will increase.”
The seller of Trianon Old Naples plans to retain its other local hotel property, Trianon Bonita Bay in Bonita Springs, at this point, Taylor said.