Tuesday, July 7, 2015

Philly's biggest hotel up for sale as tourism slows: report

Is Philadelphia Marriott Downtown worth $325M?

Philly's biggest hotel up for sale as tourism slows: report

0 comments
The Philadelphia Marriott Downtown at 12th and Market streets. (File photo: Laurence Kesterson / Staff Photographer)
The Philadelphia Marriott Downtown at 12th and Market streets. (File photo: Laurence Kesterson / Staff Photographer)
Travel Deals

Host Hotels & Resorts hopes to sell Philadelphia's largest hotel, the 1,400-room, 23-story  Philadelphia Marriott Downtown, reports Real Estate Alert, Hoboken, NJ. The newsletter said Host hopes to fetch as much as $325 million, or $231,000 per room, more than triple the total price paid in any previous Philadelphia hotel resale. Broker is Eastdil Secured. Host officials were not immediately available when I called for comment.

Host sells hotels where it expects only slow growth in future revenues, or when major improvements are needed, or in markets where prices have lately risen, the company said in its 2012 annual report.  Real Estate Alert said the Downtown hotel, built in 1995 and expanded in 1999. was renovated for $54 million in 2011. Some of the hotel's ground-floor retail space is vacant. Host also owns Philadelphia's Four Seasons and Airport Marriott hotels, among others.

The Philadelphia Marriott stands across Arch St. from the hotel-tax-subsidized Pennsylvania Convention Center, which, like other U.S. convention centers, has had a tough time convincing big new shows to locate there over the next few years. Philadelphia hotel room occupancy fell to around 66% in the first quarter, from 69% a year earlier, the report added, citing Smith Travel Research. Host has sold four hotels since 2011, including the nearly 1700-room Marriott Marquis in Atlanta, which fetched $293 million from the national investment trust of Abu Dhabi.

A sale "is very possible," says Jay Shah, boss at the Philadelphia-based Hersha hotel group. "Philadelphia is in fact a slow growth market. It is expected  to be a lagging market for the next several years due to the lack of corporate demand generators in the city and a significantly underperforming convention center." 

More coverage
 
Grim future for Pa. Convention Center?
 
Decision nearer on private Convention Center role
 
How will Convention Center weigh would-be managers?
0 comments
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
 
comments powered by Disqus
About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
Also on Philly.com:
letter icon Newsletter