Sarasota-based Floridays Development Co. is partnering with a Michigan-based hotel operator to build a Holiday Inn & Suites near Orlando Vineland Premium Outlets, a partner with the company told GrowthSpotter.
The planned six-story, 144-key hotel would be based on the southeast corner of Lake Street and Regency Village Drive, a block east of the outlet mall and directly north of the Home2 Suites by Hilton hotel that Floridays developed last year, and opened this past January.
Floridays is partnering with Lodgco Hospitality out of Mount Pleasant, Michigan, and has the 2.42-acre lot at 12005 Regency Village Dr. under contract. The two companies will form a joint venture under Regency HI Hospitality LLC to own the hotel, with Lodgco tabbed to manage it.
For Floridays, the new project expands its broad footprint in the immediate area east of the premium outlets, following its Home2 Suites and the 432-unit Floridays Orlando timeshare resort it developed along Daryl Carter Parkway.
The relationship formed last year in Sarasota, when a Lodgco principal was there in his vacation home and read local news about Floridays' activity in the hotel market, partner Steve Mullen said Thursday.
Lodgco opted to enter the Florida market last year by joint-venturing with Floridays on two hotels totaling 222 rooms in Sarasota, a Home2 Suites and Hyatt Place now under construction.
For the Regency Village project, Mullen said the two companies zeroed in on the Holiday Inn flag after concluding that the S. International Drive submarket was saturated with limited service properties.
"We see Holiday Inn as a notch above, select service, and will have its typical design and amenities but a limited food and beverage service," said Mullen, noting the hotel will have a restaurant and swimming pool. "Our aim is to draw more of the corporate travelers from the convention center, and families."
The property falls within the Regency Village PD, which has room entitlements available for the project, Mullen said. A Development Plan has been filed with Orange County, and should go before the Development Review Committee in August.
Construction could begin on the hotel in First Quarter 2017, Mullen said. A construction loan will likely be sought at 70 percent loan-to-cost; no lender or general contractor has been chosen yet.
Mullen declined to forecast on Thursday a total investment in the project through buildout, including land acquisition.
The 2.42 acre-parcel is currently owned by an LLC affiliate of Wayne J. Hilmer Sr., founder of Orlando-based Touchrate Solutions. Hilmer has a portfolio of investment properties, according to asset manager Jill M. Smith.
This would be the sixth Holiday Inn in the Greater Orlando market, and fourth in the Orlando-Kissimmee tourism corridor.
Central Florida Engineering Consultants out of Maitland is site engineer on the project, MILES Architecture Group of Maitland is the architect, and American Surveying & Mapping of Orlando was the surveyor.