Orlando- and Louisiana-based developers are planning common wall, dual-branded select service hotels on 4.865 acres along Palm Parkway, directly south of Lake Ruby and roughly two miles northeast of an entrance to Walt Disney World.
Located northeast of the intersection of Palm Parkway and Lake Street, six small contiguous parcels were bought in February 2014 for $1.12 million by Orlando-area businessman David Bansmer, and Robert J. Guidry of New Orleans.
The property lies just across the street from 158 net-developable acres that were re-entitled in recent months by Unicorp National Developments and developer Dwight Saathoff's firm Project Finance & Development, for a gated community planned by Pulte Homes.
"Proximity to the tourist core drove our interest, and we got a very good deal on the land," Bansmer told GrowthSpotter. "The Orlando market continues to perform well, and we think justifies new key development."
The developers have submitted a Land Use Plan for the two hotels that will share a roof, walls and facilities, a Springhill Suites and Towneplace Suites by Marriott. A revised Development Plan should be filed with county planning staff next week.
"In urban settings this is becoming more common, where you see two flags from a hotel family being built within the same structure," Bansmer said. "When we signed this deal (with Marriott) it was the first of its kind in Orlando's resort setting."
While full entitlement allotment should reach 434 rooms, Bansmer said the hotel development probably won't reach that maximum. He declined to forecast the number of rooms planned, though a website for Guidry references 330 rooms for the project.
The two separate hotels will share amenities, staff services and a general manager.
"With the layout of the land, this format will make operations more efficient. We can offer a better amenities package because we won't have a space between the buildings," Bansmer said. "As hotel owner we'll gain quite a bit, as we'll have a single GM and can share services like laundry facilities and staffing. From a development perspective I won't have to build two of everything."
Bansmer and Guidry are partners in the project, with Bansmer leading the Orlando development as a resident businessman. The duo have hotel projects in varied stages of development in New Orleans, Destin, Fla., and Orlando.
Bansmer and Guidry are currently trying to get out of their purchase of the Doubletree by Hilton near University of Central Florida, a Nik Patel property that the investors won in a July auction for $30 million.
Their affiliate LLC never closed on the sale after putting down a deposit of $1.53 million on the hotel, following a dispute over the closing date time line, the Orlando Sentinel reported in late November. A lawsuit has been filed for refund of the deposit.