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Hotels & Hospitality Development News in Central Florida

Developer seeks to convert rehab facility into a hotel in Seminole County’s Fern Park neighborhood

NAB Hospitality wants to repaint and furnish a former rehab center, as part of plans to convert the aging building into a hotel along U.S. 17-92.

A company led by Jay Patel, the owner of Delaware-based NAB Hospitality, is eyeing some lakefront property near Maitland with hopes to turn a former sober house into a hotel.

The developer recently submitted a preliminary site plan to convert the shuttered rehab facility at 8875 Highway 17-92 South into a 32-room hotel in Seminole County’s Fern Park neighborhood.

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Advanced Recovery Systems, an integrated healthcare management company that helps treat addiction, substance abuse and mental health conditions, is the current owner of the 5.14-acre site. Next Step Village, which is part of ARS, operated a drug and alcohol rehabilitation center on site before closing its doors during the pandemic.

Records show ARS paid $2 million for the property in 2015. At the time, the main building was a roughly 20,000-square-foot motel built in 1990.

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NAB Hospitality is seeking to convert a former rehab center along U.S. 17-92 into a 32-room hotel.

Patel is looking to reinstate the original use of the property and because the parcel features a C-2 zoning classification, the building may be reverted back to a hotel without having to rezone the land.

In 2011 a site plan was approved to convert a portion of the motel into a banquet hall with a seating capacity of 150 seats on the third floor.

The subject site is located in the City of Casselberry utility service area, but it features a Maitland address.

Patel declined to comment on the story. In his application, he says NAB Hospitality plans to repaint the building and add new furnishings. Patel worked with hospitality design platform Spaceez to provide conceptual art of the proposed hotel.

“Seminole County has a shortage of hotel rooms due to sporting events,” his proposal states. “This hotel will help in keeping more revenue within the county.”

Another conversion project in the Fern Park neighborhood includes V3 Capital’s senior living facility at 7255 Estapona Circle, which was previously an office building in 2018.

In Osceola County, a number of hotels are being targeted by developers looking to convert them into workforce housing around the W192 tourism corridor.

While some projects are underway, others are having a tougher time launching off amid recently enacted conversion guidelines formulated by the W192 Development Authority. The requirements imposed were made to ensure that quality housing is maintained, but many developers have complained the guidelines make it more difficult to perform such projects.

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Have a tip about Central Florida development? Contact me at arabines@GrowthSpotter.com or (407) 491-3357, or tweet me at @amanda_rabines. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.


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