Peachtree Hotel Group, an Atlanta-based development, investment and management firm, is zeroing in on 3H Group’s new eight-story hotel in downtown Orlando.
The project under construction at 409 N. Magnolia Ave. will feature a dual-branded Hilton Garden Inn and Home2 Suites hotel, once complete. The site was formerly anchored by a 75-room Travelodge Orlando Downtown that was demolished earlier this year.
The CEO of 3H Group, Hiren Desai, told GrowthSpotter the company signed a development agreement with the Atlanta-based firm.
According to a deed recorded in Orange County, an entity tied to Peachtree paid $11 million for the land underneath where 3H Group is currently building the Hilton Garden Inn/Home2 Suites Orlando Downtown project.
The same entity, PHVIF II – PHVIF III Orlando LLC, also provided about $10.8 million in financing. Desai said Peachtree can exercise the option to pay for the hotel after construction is completed.
“Everything remains exactly the same. It’s still the same project,” Desai said. “After it’s complete, another transaction will take place if all goes well.”
The hotel is slated to open in early 2021.
Tennessee-based 3H Group sourced a $25.8 million mortgage from Iberiabank in May to help finance the development of the hotel.
The project is located directly east of the Orange County Courthouse, on the northeast corner E. Livingston Street and N. Magnolia Avenue.
It formerly housed the Travelodge Orlando Downtown and restaurant Chef Jeremiah’s City Diner. Both buildings had dated back to 1958.
3H Group is also in the midst of completing a TownePlace Suites hotel within the mixed-use Grand National project along l-Drive.