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SAN DIEGO-The long-awaited Hilton San Diego Convention Center Hotel took another step toward reality yesterday. The planned 1,190-room project closed on $348 million in construction financing, according to the developers, who completed financing with San Diego National Bank."We have spent a year putting that financing together," says Thomas Arasi, president of Portman Holdings, one of the project's developers. Atlanta-based Portman and Greeley, CO-based Phelps Development, a wholly owned subsidiary of Hensel Phelps Construction Co., are partnering on the project. The Convention Center Hotel is expected to be the largest single hotel development in 2006 in the US.The project dates back to 2001, when the developers "were the winning group through an RFP," Arasi tells Globest.com. In December of that year, the Port Commission considered proposals to build a $300 million-plus hotel at the former Campbell Shipyard site, at the southeast end of the Convention Center, near Eighth Avenue and Harbor Drive.The other finalists on the project were Maritime Venture Partners LLC; TUDC LP with Tishman Urban Development Corp. as general partner and THR Management LP as limited partner; and ML Hotels LLC, a partnership of Marriott International Inc. and Landmark Organization LP.After such an arduous road to fruition, Arasi says, "It is gratifying to clear the last hurdle. This hotel will have a dynamic impact on both San Diego's skyline and economy and will dramatically enhance the marketing strength of the Convention Center."He adds that the project fills a large niche in the San Diego market. "While the city has a number of hotels in place, there's actually a shortage, particularly in peak periods, for large convention space," Arasi says.