A $192 million development with some public funding is coming to a long-vacant hotel near Disney World.
Meyers Group is planning a major redevelopment of the Orlando Sun Resort & Spa at 5020 West Irlo Bronson Memorial Highway in Kissimmee, the Orlando Business Journal reported.
The Aventura-based developer is proposing hotels, restaurants, an entertainment venue, meeting space, museums and a parking garage to replace the massive old hotel, which closed in 2012 and has become a blight, attracting over 150 sheriff’s office calls and numerous fire department responses over the last decade.
Meyers Group’s earlier concepts for the site suggested 800,000 square feet of retail, entertainment and restaurant space, along with 500 hotel keys.
It has a contract to buy the property and is seeking support from Osceola County, proposing the formation of the Ovation Community Development District, which would help fund the project.
The county is proposing a joint marketing agreement of up to $10 million over 20 years, funded by an increase in tourism development taxes. Additionally, the county would reduce mobility fees by $11.5 million and offer $6.5 million to cover demolition costs. A special assessment of three percent would also be imposed on hotels and short-term rentals on the property.
Further details from county and developer representatives were not immediately available.
Metro Orlando’s hotel occupancy was over 70 percent in December, Hospitality Investor reported, citing CoStar. That’s a 3 percent year-over-year decrease but well above the national average of 52.6 percent for the same month.
Many of the headlining theme parks in the Orlando area are adding new attractions, which are expected to give hotels a boost, the outlet reported. For example, Universal Orlando Resort is investing $1 billion in Epic Universe, a 750-acre addition expected to open next year with five “themed worlds” including Nintendo, Harry Potter and How to Train Your Dragon.
—Rachel Stone
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