Sensing growth build in and around Orlando International Airport, a local hotel owner-operator has revived plans for what should be a new Wyndham Garden hotel less than 3 miles from the north terminal, and has yet to choose a general contractor, a principal with the family group told GrowthSpotter.
Set for 2.886 acres across three parcels at the northeast corner of McCoy and Conway roads, most of the property has been owned by affiliates of the Reddy family since 2006. The family signed a flag agreement with Wyndham five years ago, but put the project on hold when construction financing was hard to come by, said Dheeraj Reddy, a principal in the ownership group.
"Now the airport is growing, that area around it is growing in many ways, Lake Nona is developing, and we have new financing options," he said Wednesday. "It will be a Wyndham Garden property."
The company has filed a Master Plan request with City of Orlando to develop a five-story, 112-room hotel with 92 parking spaces, and seeks a Conditional Use Permit for the hotel to exceed 35 feet in height, and to allow up to two high-rise signs for the hotel.
Reddy's company will apply for a small business loan, and is in the process now with First Integrity Bank of Tampa, a lender they've worked with on past properties, he said.
An affiliate of Kansas-based hotel company Woodspring Hotels paid $1.225 million on Thursday for 2.79 acres in Belle Isle near Orlando International Airport, where it plans to break ground within weeks on a 109-key extended stay hotel.
The family currently owns and operates two hotels in the tourism corridor: the Quality Suites at 9350 Turkey Lake Road, and the Quality Suites at 7400 Canada Ave., Reddy said.
The family's affiliate Express Shop Investments II LLC owns two of the parcels on McCoy Road totaling 2.268 acres. The remaining 0.62 acres planned for development is owned by Wilfredo Pina of Orlando, which Reddy said the family plans to acquire.
Total investment for the hotel projects as $10 million or more, Reddy said, with early 2017 targeted for groundbreaking and an opening by year's end.
Development of the property will be a unique challenge, as roughly 90 percent of it is wetland (already mitigated) and 90 percent lies in a floodplain.
But John Herbert III, president of American Civil Engineering out of Winter Springs and civil engineer on the project, worked up a creative -- though potentially expensive -- solution for the Reddys.
A grid network of concrete piles would be buried to span over the floodplain, with a foundation deck set on top, six feet above the natural ground, a height to match elevations of McCoy and Conway roads, Herbert said.
The Greater Orlando market boasted 68 individual hotel transactions in 2015, with single asset sales totaling $595 million in value -- more than the previous two years combined. Despite economy and debt market questions, Orlando can draw more hotel investment than ever, said Paul Sexton of HREC Investment Advisors.
The property was permitted for a similar hotel back in 2007, but those permits expired so the applicant is now retracing the approval process.
The revised Master Plan and CUP requests should go before Orlando's Municipal Planning Board on Sept. 20. Those could pass through two City Council readings by late November, putting Herbert and the Reddys in position to resubmit a site plan for staff review in December.
Reddy said a general contractor will likely be chosen in the coming months, as plans progress through the city approval process.