Orlando is known for its amusement parks and related hotels. These destinations override the visibility of downtown, making that, perhaps, under-built.

“Downtown Orlando is America’s next great downtown,” says Thomas Chatmon, executive director for the Orlando Downtown Development Board. He talks about downtown with an excitement that foretells an urban recovery ahead of the nation.

While downtown’s population is 43,400, more than 65,000 work there on a daily basis. That’s small compared to the city itself, which has 238,200 and the Greater Orlando Metropolitan Area, which is home to 2.1 million.

That said developers, including hotel companies, are busy. Right now approximately 18 major construction projects are or are soon-to-be under construction, totaling $3 billion in both public and private investment, says Chatmon.

“Several hotels were being proposed in 2007,” he says, “but they cooled off in late 2008 because it became difficult to get financing. It’s coming back to life now.”

At least three hotels are moving along and more are underway. “Several hotels are looking at the feasibility of establishing conference or convention centers,” says Chatmon. “An extended-stay flag is looking at a specific site in downtown. At least another three are looking at the city, two of those are looking at the Westside in the proximity of Amway Center.”

“I believe one of the major needs/opportunities that we have downtown is bringing a fairly major conference center or convention center attached to a four- or five-star hotel,” he says.

The city certainly is busy. A driving force is development of the SunRail, a 61-mile commuter rail, to be operational by 2014. Connected directly to the SunRail/mass-transit hub will be Central Station. The first phase of this private, $200 million development is getting under way and will include a major hotel, residential, retail and office space.

New entertainment complexes are expected to bring more people to the city, and perhaps, drive heads in bed. Opened in October 2010, the $480 million, multi-use sports and events venue, Amway Center, is home to the Orlando Magic and hosts concerts and events from Lady Gaga to the Harlem Globetrotters.

The nearby Dr. Phillips Center for the Performing Arts will include up to three theaters and host Broadway productions, concerts, the symphony, opera and ballet as well as educational facilities

Demolition of the former Amway Arena makes way for the first step toward development of a 68-acre digital-arts community, known as Creative Village, where cutting-edge businesses, education facilities, residences and other critical infrastructure will converge.

“Investors and hotel developers are looking at what the city is doing to make downtown more attractive beyond business,” notes Scott Smith, faculty member at the University of Central Florida's Rosen College of Hospitality Management. “With increased traffic they see a need for more hotel rooms.”

“When you look at the downtown Orlando market, compared to other metropolitan areas, it doesn’t hold a lot of hotels,” he notes. “Most of our hotels are really away from downtown. While other areas might be overbuilt, downtown seems to be the exception.”

From October 2010 to October 2011, downtown Orlando hotel occupancy hit five-year highs in nine of 12 months. With the exception of one month, downtown’s occupancy rates have been higher than the overall greater Orlando area, according to Smith Travel Research.

While most hotels are just nearing the end of their planning stages, Concord Eastridge, Inc. is one developer ready to talk specifics. The company bought a site 3 ½ years ago. Leaders were confident in downtown Orlando, but planned carefully before breaking ground.

“Through these difficult economic times, we’ve gone through a number of different development scenarios for the hotel,” says Jeff Arnold, president of the Arlington, Va.-headquartered company. “We’ve received approval for a scaled down version of what we originally planned.”

Among the original ideas were condominiums, a condo-hotel and a hotel with as many as 21 floors. Today’s plans call for a seven-story, 146-room Cambria Suites with a fitness center, pool, kitchen and dining area on the first floor.

“You have to match your equity with debt,” says the developer/owner. “In this marketplace the debt market is difficult and challenging. It’s hard for hotels.”

His project got a city go-ahead in June. Final paperwork was ready in November.
In January, the company plans to demolish an empty, 40-year-old, two-story building so it can begin construction.

Concord Eastridge designed the limited-service Cambria Suites to appeal to business people. “We felt that there was a hole in the market to provide good quality hotel rooms for the business traveler at the right price,” says Arnold. “We also have as a partner Choice Hotels International. Some of it [the flag decision] was a function of getting just the right brand and finding a partner that would join us in the development.”

The time and location are right, according to Arnold. “Most people from out of town think of Orlando being synonymous with Disney. Downtown is really a vibrant business community that’s underserved.”