Daytona Beach convention center needs private developer for hotel

2/6/2012

A recent study conducted by Orlando, Florida-based consulting firm Fishkind & Associates determined that the market in Daytona Beach was ripe for a second hotel near its Ocean Center complex, the News-Journal reports.

Volusia County chair Frank Bruno and Daytona Beach mayor Glenn Ritchey commissioned the study after being bombarded with requests from real estate developers to add a second hotel across from the 744-room Hilton Daytona Beach Oceanfront Resort.

The study found that developers would need an estimated $130 million in motel financing to cover construction costs of a new development, which would contain more than 500 rooms. The funds would be covered by a 30-year bond to be paid off by facility user fees and potentially tourism bed taxes.

"Until we have the prospect of a new convention hotel, with other upgrades in the area, I think it's going to be very difficult to promote the Ocean Center," Bruno told the news source in a separate article.

If the city is able to secure a private developer, the new hotel would be placed directly across the street from the Ocean Center. As a result, larger groups would be attracted to the area, allowing both hotels the charge higher rates.