Hollywood-based hotel owner-operator AD1 Global is proposing a trio of select service hotels totaling 429 rooms on more than 57 acres in the southwest corner of Orange County, and will seek agreements with flags and a commercial lender in the coming year, the company's president told GrowthSpotter.
A preliminary site plan filed with Orange County on Friday depicts three seven-story hotels each with 143 rooms, a multipurpose grass field, and a shared amenities area that includes a restaurant, clubhouse, "FlowRider" surf machine, lazy river, splash zone, swimming pool with water falls, two spas, a tiki bar, waterslide tower, and a beach area and volleyball court that fronts a man-made lake.
Located at 17509 Bali Blvd., northwest of the Avalon Road intersection and 7.7 miles west of Disney's Animal Kingdom, the 57.6 undeveloped acres were bought by an AD1 affiliate back in September 2013 for $800,000.
"We envision this as three select service hotels that share some services, with a water entertainment feature for our guests that becomes a type of destination," said Daniel Berman, AD1 president. "We're working on renderings now to present our vision to flag (representatives), at which point we'll decide what is best for this location."
AD1 expects by the end of Q1 2017 to have a Development Plan approved by Orange County, flag agreements in hand and work started on detailed architectural plans, he said.
Overall investment in the project should approach $60 million, Berman estimated on Friday, with 35 percent likely coming from developer equity, and the rest sourced from construction financing and EB-5 investment. Construction plans and financing could be ready by Q3 2017, he added.
AD1 is open to a variety of hotel flags and commercial lenders for the project, Berman said. This would be the company's second new hotel development in Florida.
AD1 paid $8.6 million in early August for its second value-add hotel on International Drive, the Comfort Inn International behind Mango's Tropical Cafe.
A lead executive with the company told GrowthSpotter at the time the company was actively seeking more assets in the market, while trying to establish its third-party management service here, AD1 Management.
The purchase followed AD1's first investment on I-Drive in July 2015 for $10.8 million in the Best Western at 8222 Jamaican Court, located on the corner with International Drive and just 500 yards south of the intersection with W. Sand Lake Road.
AD1 now owns eight hotels in Florida, which includes three in Kissimmee. The company also owns a number of multifamily and office properties throughout the state.
The developer has requested a pre-app meeting with county staff in mid-December. Cuhaci & Peterson is the project architect, and Kissimmee-based Franklin, Hart & Reid is civil engineer.