WYNDHAM GARDEN TALLAHASSEE Capitol, a 147-room hotel in Tallahassee, Florida, was recently sold for $7.91 million, or $53,844 per key. Kabani Hotel Group brokered the deal, led by CEO and founder Ahmed Kabani, with partners Suraj Dalal and Kian McLean.
The asset, encumbered by a CMBS loan, required defeasance to complete the sale, Kabani said in a statement. Despite negative cash flow, the hotel sold at a 2.72x room revenue multiplier, reflecting investor confidence in the market’s long-term potential.
“We are confident the new ownership will thrive in this location,” said Kabani. “Despite a challenging financing environment and interest rate headwinds, the right buyer was identified and secured new financing after the loan defeasance process.”
Dalal said the deal was challenging, involving CMBS loan defeasance, leasehold transfer, limited debt availability and multiple failed sale attempts.
“As our 11th hotel closing in 2025, we leveraged our deal history and investor relationships to bring this to a successful close,” he said.
Tallahassee, Florida’s state capital and the property’s location, remains a steady hospitality investment market driven by government, education and healthcare. More than 70,000 students attend Florida State University, Florida A&M University and Tallahassee Community College. Demand also comes from the state capital, legal sector and medical institutions such as Tallahassee Memorial HealthCare. Projects like the Heel District signal continued economic and infrastructure activity.
“This transaction tested the depth of our buyer network,” said McLean. “Given the challenges—from CMBS defeasance to a leasehold structure and negative cash flow—only a highly qualified, motivated buyer could get this to the finish line. That we sourced such a buyer speaks to the reach and strength of our investor relationships.”
In May, Kabani brokered the $3.75 million sale of the 49-room Travelodge Fort Myers Airport in Fort Myers, Florida.
