Raleigh-based Concord Hospitality Enterprises, a hotel developer, owner and operator with a hand in five Orlando properties, is targeting the market for growth and negotiating a joint venture for the hotel in Downtown Orlando's proposed Tremont Tower, a lead executive with the company told GrowthSpotter.
The privately held Concord has 108 hotels open or under construction across 21 states, roughly two-thirds of which it operates for other owners.
In Orlando, Concord manages four hotels for other owners, including the dual-brand Courtyard and Residence Inn hotels opened last August in Lake Nona by owner Tavistock Group. Concord's fifth in the market is one it developed, owns and manages, the Courtyard Orlando South at 4120 Taft Vineland Road, near Darden's headquarters.
While Concord is opportunity-driven in its expansion process and doesn't necessarily rank cities, Orlando is among four top markets being eyed by the company for development opportunities, which include Miami, New York City and Washington, D.C., said chief operating officer Nick Kellock.
"Orlando is one of those hotel markets where a lot of new hotels get developed and demand just continues to increase," he said. "It's a strong market that sustains high visitor levels, and new supply is getting absorbed."
The company's next Orlando investment could be a joint venture with Lincoln Property Company (LPC) to develop, co-own and manage the 180-key AC Hotels by Marriott planned for the mixed-use Tremont Tower in downtown, Kellock said.
The JV negotiations are still early, and subject to change, he said. The hotel within Tremont Tower could be under construction by late 2017 and open in mid-2019, Kellock added.
"Downtown Orlando is a great market that sustains performance levels, with room for two to three new hotel properties in our view," he said.
Executives with LPC did not respond to requests for comment on Tuesday.
Concord Hospitality is also trying to actively promote its property management service for Orlando-area hotels, with a sweet spot in premium select service and Marriott, Hilton and Hyatt flags.
Tremont Realty Capital isowner of Church Street Station downtown and land parcels on which the 25-story mixed-use Tremont Tower will be built, at the corner of South Street and Garland Avenue next to Church Street Ballroom. LPC is serving as master developer on the project, with equity partners.
GrowthSpotterfirst reported in April that LPC had swapped in the contemporary urban flag AC Hotels for previous placeholder Hyatt Place, with leasing director Austin Stahley saying it "better captured the energy we wanted for that downtown corner."
The eight-story hotel would occupy floors 18-25, and be accessed by guests from the ground via an express elevator to the tower's 18th floor. The 18th floor would feature a lobby bar and amenity level with outdoor patio seating overlooking Downtown Orlando, and the 19th floor dedicated to guest check-in.
Initially estimated to start construction in Q4 2015, work has yet to start on the Tremont Tower. The project lost an expected anchor tenant in early October, when Fairwinds Credit Union opted out of its commitment to move into the tower, citing LPC's inability to meet deadlines, reported the Orlando Sentinel.
Lincoln said that a deal with a larger replacement tenant would be announced soon.