Sarasota-based Floridays Development Co. is partnering with a Houston-based operator to open its second Home2 Suites by Hilton hotel in the tourism corridor. The joint venture should close on the property this month, break ground by October, and has yet to sign a general contractor, a lead executive told GrowthSpotter.
Located at 2800 Destination Parkway, the 2.33-acre parcel lies just off the southwest corner with S. John Young Parkway. It's meant to draw from the SouthPark Center office park across the street, and other office parks along S. John Young Parkway.
The hotel site is also less than a mile from the southern boundary of Universal Orlando affiliate SLRC Holdings' 474 acres, and the future development that may occur there.
"We like the corporate aspect of that market, that whole SouthPark area and its white collar presence, and with Destination Parkway opening up into I-Drive in the future, we think it's an exciting corner to be on," said Steve Mullen, Floridays partner.
The five-story, 117-key hotel will be a joint venture with Vista Host Hotels, which will manage the property as well. A construction loan is being sourced through a Texas bank for about 75 percent of the projected $15.2 million project cost, Mullen said.
Permits for site work and a Development Plan have already been approved by Orange County. Construction documents must be finished and submitted in the next 30-45 days, and negotiations are underway with a few general contractors, Mullen said.
This will be Floridays' second Home2 Suites in Orlando's tourism corridor, following the property they opened this past January at 12107 Regency Village Dr., near Orlando Vineland Premium Outlets. That hotel is also managed by Vista Host.
Construction on this project should start ahead of Floridays' planned 144-key Holiday Inn & Suites on Regency Village Drive, for which it is joint-venturing with Lodgco Hospitality out of Mount Pleasant, Michigan, and has 2.42 acres under contract.
Floridays is high on the Home2 Suites flag, with its second under construction now in Sarasota, and plans to break ground on another in Brandon this October.
The company is currently seeking more hotel development land in Greater Orlando, looking in close proximity to hospitals and medical centers, including Downtown Orlando, Lake Nona and Horizon West, Mullen said.
The Destination Parkway land is owned by an affiliate of Norbridge Properties, a development, sales and leasing business with commercial properties throughout Orlando. The father-daughter team of Norberto and Erika Duarte are also owner-operators of Air Force Fun Helicopter Tours.
The Duartes are holding on to a 3.7-acre parcel adjacent to the hotel site for future development. They sold the 1.94 acres on the hard corner in 2012 to Racetrac Petroleum Inc. for $1.44 million, where a fuel station now stands.