Sunday, November 29, 2015

Convention Center, labor speed-up boosts hotel profits: report

$5 million to spruce up two Center City hotels as the enlarged Convention Center prepares to open

Convention Center, labor speed-up boosts hotel profits: report


LaSalle Hotel Properties, Bethesda, Md., plans to spend $5 million over the next 12 months sprucing up its Embassy Suites Hotel, 1776 Benjamin Franklin Parkway, and its Westin Philadelphia at 17th and Chestnut (Liberty Place), in advance of the opening of the enlarged Pennsyvlania Convention Center, analyst Daniel P. Donlan of Janney Capital Markets told clients in a report today.

LaSalle spent $224 million buying the two hotels from HEI Hotels and Resorts, Norwalk, Conn., last fall. HEI still manages the hotels, along with its Le Meridian Philadelphia.

The hotels are already profitable -- LaSalle is keeping around 38 cents of every rental dollar, before interest, taxes and other financial costs, and can expect to boost profits "by increasing the number of rooms a housekeeper can clean in a given period of time," Donlan adds. 

The convention center expansion has boosted the number of big events booked there to 15 next year adn 17 in 2012, up from 10 this year and back to pre-2008 crash levels and boost convention-related hotel rentals above the current level of about one-third (vs. 40% at other big downtown hotels.)

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: 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 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 interviews, drafts and updates that Joseph N. DiStefano writes alongside his Sunday and Monday columns and ongoing articles about Philadelphia-area business.

DiStefano studied economics, history and a little engineering at Penn. He taught writing and research at St. Joe’s. He has written for the Inquirer since 1989, except when he left a few times to work at Bloomberg and elsewhere. He wrote the book Comcasted, and raised six kids with his wife, who is a saint.

Reach Joseph N. at, 215.854.5194, @PhillyJoeD. Read his blog posts at and his Inquirer columns at Bloomberg posts his items at NH BLG_PHILLYDEAL.

Reach Joseph at or 215 854 5194.

Joseph DiStefano
Also on
letter icon Newsletter