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GC to be chosen within 30 days for boutique hotel across from ORMC

Two medical buildings on S Orange Avenue across from Orlando Regional Medical Center will undergo extensive renovations including for transformation into the boutique Delaney Hotel.
Two medical buildings on S Orange Avenue across from Orlando Regional Medical Center will undergo extensive renovations including for transformation into the boutique Delaney Hotel. (Orange County Property Appraiser)

Developers of a new boutique hotel and restaurant slated for a medical office building across from Orlando Regional Medical Center will decide on a general contractor within the next month, a lead executive with the company told GrowthSpotter.

Located at 1315 S. Orange Ave., the planned 54-room Delaney Hotel will take up most of the 31,000-square-foot property, which was former home to Doc's Streetside Grille that closed in late December.

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The building, which will receive a 7,000-square-foot addition, will include a restaurant, Delaney's Tavern. It will retain one medical tenant, NSI NeuroSkeletal Imaging.

The property is separated by a courtyard from a six-story, 50,000-square-foot building at 1405 S Orange Ave., which the doctors' group also owns. This structure will receive an exterior façade renovation, painting, landscaping and new lighting and remain a medical office site.

The total project cost is expected to be roughly $12 million, with C1 Bank providing all financing, said Greg Allowe, executive vice president with the Delaney Hotel Group.

The buildings are across S. Orange Avenue from Orlando Health's flagship hospital. The property's owners, a group of doctors, are dealing with changes in the medical field that have made it difficult getting doctors to take offices there, Allowe said.

"As medical practices are bought by hospitals and corporations, the demand for medical space by individual physicians is declining," Allowe said. "They are mostly part of groups that are hospital-owned."

The group that owns the buildings, as well as a 318-space on-site garage, is led by orthopedic surgeon and sports medicine doctor Tom Winters.

"It is the right time for a good restaurant and a quality hotel in that area," Winters said. "The hospital is growing in leaps and bounds and so is that area in general."

The Delaney Hotel will occupy the building's second and third floors, with a fitness center on the second and rooms averaging 400 square feet, but going as high as 900 square feet.

The hotel will be ecologically-friendly and LEED certified, with climate-friendly energy sources, all vegetable-based shampoos and soy-based inks, Allowe said. "We're doing everything possible and financially feasible to be eco-friendly."

Allowe said the hotel would, when possible, put up for free or at a very low cost, families of patients at Orlando Health facilities.

Allowe said the new Delaney's Tavern would "be like a Cheers-type place." Emphasis on the name Delaney is in deference to the nearby Delaney Park neighborhood.

Although construction has yet to start, Allowe is already thinking ahead to "create a brand, and do more locations near hospitals."

For the Orlando hotel, plans are to break ground within 90 days, with demolition of the second and third floors among the first work that will be done. Construction is expected to be complete 12 months after the groundbreaking.

RLH Construction LLC has been doing initial general contractor work, but there are three other contractors Delaney Hotel Group is speaking to, with a decision expected within 30 days, Allowe said.

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Stubbs Architecture LLC is the architect, MKT Engineering is the structural engineer, and OCI Associates is the MEP (mechanical, electrical and plumbing) engineer.

Have a tip about Central Florida development? Contact me at ktalley@growthspotter.com or (407) 420-5176. Follow GrowthSpotter on FacebookTwitter and LinkedIn.

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