A Tampa-based developer is pursuing city approvals to build its second hotel in South Downtown Orlando serving the Orlando Regional Medical Center and its surrounding campus, just as its first property reaches stabilization.
Development entity 51 Columbia Hotel Property LLC is a newly-created affiliate of Charles Funk and Jeffrey Meehan, real estate investors and developers behind HG Management LLC, a hotel and multifamily developer out of Tampa.
The second lot had been previously planned by the developer and approved by the city for a six-story medical office building.
But Meehan's group filed a request in early April with the city to amend the Planned Development zoning, and swap in a second hotel for the office building. They're planning a new TownPlace Suites by Marriott, an estimated $16 million-to-$20 million project with five stories and 112 keys.
"We decided to move forward with this new Marriott product, largely due to the success of the Hilton (Hampton Inn) next door that we built last year," Meehan told GrowthSpotter, who cited average occupancy above 80 percent at the Hampton. "We felt the two brands complement each other, and the first has been received well by the hospital and downtown business community."
Meehan's goal is to have city approvals for the zoning amendment and future Development Plan in the third quarter of this year, and begin construction on the site before year's end.
"We are pleased to partner with HG Management LLC on this project," said Matt Taylor, vice president of asset strategy for Orlando Health, in an e-mailed response. "The first hotel [Hampton Inn] has been a welcome addition to our downtown campus, serving our patients' families and visitors. The new facility will further enhance hospitality options for the Downtown South neighborhood."
This would be Meehan and Funk's third hotel in Greater Orlando, following a Fairfield Inn & Suites near UCF. Both of the current properties are managed by Naples Hotel Group, which would be favored for management of the third hotel, Meehan said. Some back-of-house synergies could be achieved at the neighboring downtown hotels, but that will be limited due to the different brand families.