The Southern Oaks Inn, a 124-room property in St. Augustine, Fla., has been sold in a deal brokered by Kabani Hotel Group.
Originally built in 1973, the two-story hotel was sold for $12.5 million, which equates to approximately $100,814 per key. The transaction was exclusively listed and brokered by Lucas Mondino, partner at Miami, Fla.-based Kabani Hotel Group, and represents one of the firm’s key closings in 2025.
“We brought this asset to market with a tailored strategy and were able to generate multiple competitive offers within the first 30 days,” Mondino said in a statement. “Despite historical operational challenges, the property’s location, land size and upside potential drove strong investor interest.”
“St. Augustine remains one of Florida’s most resilient secondary markets—high ADRs, walkability, and development restrictions make it an investor favorite,” said Ahmed Kabani, founder & CEO of Kabani Hotel Group.
The seller—an absentee tech-sector ownership group—invested significantly in recent years, including full roof replacements and mold remediation/renovation work following temporary revenue declines. The sale closed at a 4.93 times room revenue multiple and at a sub‑5 percent capitalization rate.