St. Joe Coming Up With Embassy Suites Hotel In Pier Park Area
Zacks Investment Research | Aug 28, 2019 08:51AM ET
The St. Joe Company (NYSE:JOE) is undertaking every effort to expand business strategically. In line with this, recently, the company announced the beginning of construction of a 255-room Embassy Suites hotel in the Pier Park area of Panama City Beach, FL, in association with a Miami-based real estate investment and development company, Key International, Inc.
Anticipated to be completed by 2021, this hotel, neighboring the Pier Park lifestyle center at Front Beach Road, is coming up on a land currently owned by St. Joe. Following completion, St. Joe will manage the hotel’s day-to-day operations. With views of the Gulf of Mexico, the hotel will have guest suites, a pool, meeting space, a fitness center, an on-site restaurant besides an upper-level, gulf-view social, catering, and event space.
Notably, St. Joe is undertaking strategic moves to enhance its portfolio of income-producing properties and focus on recurring operating-income opportunities. This is likely to create long-term value for shareholders. Further, the company’s ownership of substantial land in Florida, which can be used for residential and commercial purposes, bodes well for long-term growth.
Particularly, the latest move of construction of Embassy Suites hotel is a strategic fit as demand for hotel space in the Pier Park area is high. In fact, over the past several years, visitation to Panama City Beach has been escalating and for the first time, last year, the Northwest Florida Beaches International Airport exceeded the one-million passenger mark, per St. Joe management.
St Joe is also focused on development or expansion of a number of commercial projects. In fact, the Panama City Beach Embassy Suites is one among at least 30 new residential, commercial or hospitality projects, which the company has initiated or plans to start in 2019. Apart from this hotel, the company’s cohort of hotel projects currently under construction also includes TownePlace Suites, adjacent to Frank Brown Park in Panama City Beach. St. Joe also has plans to build, own and operate a new branded hotel just next to the Northwest Florida Beaches International Airport.
Such measures are likely to drive the company’s top line in the upcoming period. Nonetheless, inconsistent revenue performance in many segments and regional business concentration are concerns.
Shares of this Zacks Rank #3 (Hold) company have gained 5.8% over the past three months, outperforming the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.