Orlando-based developer The Avista Group is preparing to tear down its oldest hotel property in east Orlando near UCF to build a new 126-key Springhill Suites, and has yet to choose its lender, demolition firm or general contractor, a lead executive with the company told GrowthSpotter.
Located at 11639 E. Colonial Dr., just off the intersection with N.Alafaya Trail, the 2.56-acre property has been home to a 112-key hotel since 1985, currently branded as Days Inn. AnAvista affiliate paid more than $2.37 million for it in 2005.
Construction plans call for a new five-story, 126-key hotel with a retention pond on the property's northern end. The owner earned a zoning variance approval from Orange County in October to build the new hotel up to 75 feet in height, in lieu of a 50-foot limit there.
Commercial building permit requests were filed last week with the county and St John's River Water Management District, and remain under review. No demolition permit application has been filed with the county.
"This property is a two-story hotel that has reached the end of its life span, which is why we feel it's time to move forward with the new Springhill Suites," said Ajit Nana, senior vice president. The new hotel will generate a higher Average Daily Rate (ADR) with a higher net room count.
Avista has yet to determine when in the coming months it will close and tear down the existing hotel, but estimates the site could be ready for new construction by Third Quarter 2018, Nana said.
Total project cost is still being estimated, he added. Avista will seek a construction loan next year, and has yet to interview or hire its contractors for demolition and new construction.
Avista owns seven hotels in Florida, three of which are in Orlando's tourism corridor. It's currently building a Courtyard by Marriott in DeLand.
The company has also developed and managed hotel, retail and vacation condominium properties, and is pursuing federal government approval to operate its own EB-5 regional center to recruit foreign investors to its projects.