SAN DIEGO—Work has begun on the dual hotel project that will transformation of a historic site located across from San Diego's new cruise ship terminal into a dual-branded hotel complex that features a 253-room SpringHill Suites and a 147-room Residence Inn, along with approximately 27,000 square feet of retail space and more than 400 parking spaces. The unique design approach creates differentiated guest experiences at each hotel.

Development plans also include a public park with access to the waterfront. The project is expected to open in early 2016.

In late April, development entity Lankford Phelps Portman, a real estate joint venture comprised of Portman Holdings, Lankford & Associates and Hensel Phelps, anounced that they had secured financing for a hotel project.

AIG Global Real Estate Investment Corp will serve as limited partner to the development venture, while U.S. Bank will provide construction debt financing. John Portman & Associates will provide architectural services, supported locally by Joseph Wong Design Associates.

“The Lane Field project is thrilling for a lot of reasons: it's on an unbeatable site that affords us the privilege of working with the Port of San Diego and AIG once again; both hotels are strong brands; and we're part of a fantastic development team,” Ambrish Baisiwala, CEO of Portman Holdings said in a recent statement. “Portman has a long history in hospitality development, and this will be another world-class project to add to our track record.”