Downtown Kissimmee took a major step toward adding long-promised lodging and conference space Tuesday night, as city commissioners unanimously selected Azure Hotel International Inc. and Skyview Companies to negotiate final development agreements for two city-owned properties. The vote followed months of design revisions and public workshops aimed at closing what tourism officials describe as a critical “lodging gap” in the historic district.
Civic Center Site: New $35 Million Convention Center + 200-Room Hotel
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Developer: Azure Hotel International Inc. (builder of Lake Nona’s Wave Hotel)
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Location: 201 E. Dakin St. – current Kissimmee Civic Center footprint
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Investment: $150 million+ total, including a new $35 million city-owned convention center replacing the existing 38,000-sq-ft facility
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Key features:
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200-room upscale hotel in a separate tower
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12,500 sq ft of dedicated meeting space inside the hotel
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City retains 100 % of convention-center revenue and 5 % of hotel revenue under the term sheet presented Tuesday
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Schedule: Convention center targeted for Q4 2028 completion; hotel opening projected Q2 2029
Toho Square Site: Boutique Sonesta MOD, Condos & Public Trail
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Developer: Skyview Companies
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Location: 92 Pleasant St., wrapping the existing 400-space parking garage
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Investment: $30 million
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Components:
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120-room Sonesta MOD boutique hotel
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20 owner-occupied condominium units overlooking Lake Toho
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Ground-floor retail and a south-end public trail that can tie into Skyview’s planned grocery-anchored mixed-use project on adjacent county land
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Timeline: Full build-out expected by Q4 2026
What Happens Next
Commissioners authorized staff to draft Master Development Agreements with both firms. Those contracts—covering land leases, revenue-sharing, design standards and construction milestones—will return for final approval later this year. If negotiations stall, the city can reopen talks with the two proposals not selected Tuesday (Hyatt-anchored Kissimmee Place Development Group and IHRMC Hotels & Resorts Management).
Beyond the Hotels: Other Meeting Highlights
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Parks & Recreation Month: Commissioners proclaimed July 2025 “Parks and Recreation Month,” recognizing the city’s expanding trail network and youth programs.
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Noise Ordinance & Liquor Hours: Staff presented draft revisions aimed at balancing downtown nightlife with nearby neighborhoods. The noise ordinance decision was deferred for 2 weeks, while the first reading of the alcohol hours permit was approved, with a final reading scheduled for 2 weeks.
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Fire Service Funding: In a 5-0 vote, the board approved the issuance of up to $10 million in Fire Service Assessment Revenue Notes (Consent Agenda Item 7.B) to accelerate engine replacements and the Fire Station 12 expansion.
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Standing-Room-Only Crowd: Hospitality workers from Unite Here Local 737 and residents from the Lakeshore and Beaumont neighborhoods filled City Hall, many speaking in favor of added hotel jobs but urging fair-wage guarantees.
Why It Matters
A 2024 HVS market study found that downtown Kissimmee captures only 5 % of overnight visitors to Osceola County despite its Brightline station, lakefront festivals and rapidly growing events calendar. By pairing a branded hotel with a modern convention center and activating Toho Square’s garage site, city officials hope to:
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Increase overnight stays and associated sales- and resort-tax revenue
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Support small businesses along Broadway and Pleasant Street with foot traffic after 6 p.m.
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Anchor future redevelopment of the former SunRail surface lots and vacant parcels along Lakeview Drive
Construction fencing could appear around the Civic Center as early as mid-2026, pending site-plan approval and environmental testing.
Positively Osceola will continue to follow negotiations and provide ground-breaking coverage as downtown Kissimmee’s skyline—and economic outlook—reach new heights.
