St. Joe to Partner With Key International to Develop Hotel

The St. Joe Company JOE, together with Key international, Inc., plans to form a joint venture in a bid to construct a resort in Florida’s Panama City Beach. The resort will offer up to 250 guest suites, a pool, meeting space and other amenities.

The resort hotel will be constructed on St. Joe’s land situated within Pier Park.

The companies plan to make the hotel a nationally-branded and full-service one. The location is ideal as it is within walking distance from the Russell-Fields Pier and Pier Park lifestyle shopping center. Also, it boasts a clear view of the Gulf of Mexico.

St. Joe has been making concerted efforts to expand its portfolio of income-producing properties. Further, the above-mentioned move is in line with the company’s strategy to expand its lodging and hospitality segment.

This joint venture is a rational extension for the same as Panama City Beach is a popular destination among the families. In fact, the growing tourism is likely to aid the asset to register solid demand and help in fueling top-line growth.

This is the second hotel joint venture in the Panama City Beach market for St. Joe. The first one was announced in October 2017 with InterMountain Management, LLC. The land for that too is provided in Pier park by St. Joe. This hotel will be branded as TownePlace Suites hotel and will be managed by InterMountain.

Also, shares of this Zacks Rank #3 (Hold) company have outperformed its industryin the past six months. While the stock has declined 3%, the industry recorded a decrease of 8. 2% during the period.