Renovated Homewood Suites Orlando-UCF: A Strategic Anchor in Florida's Extended-Stay Boom

The post-pandemic hospitality landscape has reshaped demand for extended-stay accommodations, driven by hybrid work trends, remote “workations,” and the enduring appeal of location-advantaged properties. The Homewood Suites by Hilton Orlando – UCF Area, recently renovated in June 2025, exemplifies how strategic upgrades to amenities, accessibility, and brand equity can position a property as a high-yield asset in this resilient sub-sector. For investors, this property offers a rare blend of geographic advantage, operational efficiency, and alignment with macro trends, making it a compelling play for steady cash flows and long-term appreciation.

The Renovation: A Formula for Modern Guest Demand

The $20M renovation of this 99-suite property—owned by Buffalo Lodging Associates and managed under Hilton's trusted brand—targets three pillars of post-pandemic traveler expectations: flexibility, connectivity, and comfort.

1. Workation-Friendly Suites: Apartment-style layouts with full kitchens, ergonomic workspaces, and free high-speed Wi-Fi cater to remote workers and long-term guests. These amenities directly address the $46 billion workation market, which grew 30% in 2024.
2. Social and Wellness Amenities: The redesigned lobby's communal seating areas, weekly Welcome Home Wednesday receptions, and a 24/7 fitness center foster community while reducing isolation—a critical feature for extended stays.
3. Location-Driven Resilience: Situated one mile from the University of Central Florida (UCF) and the Central Florida Research Park, the property benefits from year-round demand from students, researchers, and corporate transient guests. Its proximity to Orlando's entertainment hubs (e.g., Waterford Lakes Town Center, 2 miles away) and major venues like FBC Mortgage Stadium (2 miles) adds flexibility for leisure travelers.

Why Florida's Extended-Stay Sector is Undervalued

Florida's hospitality market is often overshadowed by coastal resorts, but its extended-stay segment is quietly booming. The Orlando area alone saw a 37% increase in extended-stay occupancy (stays of 28+ nights) in 2024, driven by healthcare workers, gig economy professionals, and families relocating for education or jobs.

The Homewood Suites' renovation strategically amplifies its appeal in this market:
- Brand Strength: Hilton's Homewood Suites brand holds a 17% market share in extended-stay, backed by the Hilton Honors loyalty program, which drives 40% of its bookings.
- Cost Efficiency: The property's modular design and energy-efficient systems (e.g., smart thermostats) reduce operating expenses, a key advantage in a sector where 35% of hotel profits are margin-sensitive.
- Upside in Florida's Labor Market: With Orlando's unemployment at 2.8% (below the U.S. average of 3.7%), demand for housing alternatives like extended-stay suites will remain robust.

Investment Thesis: High Yield, Low Risk

For real estate investors, the Homewood Suites Orlando-UCF represents a defensive asset in a sector projected to grow at a 5.2% CAGR through 2028. Key value drivers include:

1. Stable Cash Flows: The property's occupancy averaged 89% in Q2 2025, with average daily rates (ADR) rising 15% year-over-year to $185—a figure that could climb as Orlando's tourism rebounds.
2. Resilience to Macroeconomic Downturns: Extended-stay hotels outperform transient hotels during recessions, as their demand is tied to long-term needs (e.g., job relocations) rather than discretionary travel.
3. Undervalued Florida Valuations: Orlando's extended-stay cap rates (7.5%) remain 150 basis points higher than coastal markets like Miami (6.0%), offering higher returns for comparable risk.

Actionable Insights for Investors

• Buy-and-Hold Strategy: Institutional investors should consider acquiring this property as part of a diversified hospitality portfolio. Its 6.5% projected cap rate in 2025 offers a risk-adjusted return above the 5.8% average for Florida extended-stay assets.
• Franchise Affiliation Advantage: Hilton's operational support and brand marketing reduce management risk, making this asset suitable for passive investors.
• Watch for Upside in UCF's Growth: UCF's enrollment is expected to hit 75,000 students by 2027, fueling demand for housing and hospitality. Proximity to the university could justify future rate hikes.

Conclusion

The Homewood Suites Orlando-UCF is more than a renovated hotel—it's a strategic real estate asset designed to capitalize on the extended-stay boom. With its prime location, Hilton's brand power, and upgrades tailored to hybrid work and leisure travelers, it offers investors a rare mix of defensive stability and growth potential. In a market where extended-stay properties command 22% higher EBITDA margins than traditional hotels, this property is a standout opportunity to profit from Florida's undervalued hospitality renaissance.

For investors seeking steady returns with minimal downside exposure, the Homewood Suites Orlando-UCF is a buy—now is the time to anchor your portfolio in this rising sector.