Philadelphia Encourages New Hotel Development

As the expanded Pennsylvania Convention Center is expected to open soon, the city of Philadelphia is continuing to work with various partners to promote the city as a smart choice for hotel development and investment.   The new convention center is expected to be the largest contiguous exhibit space in the Northeast (541,000 sq. ft.), the largest convention center ballroom on the East Coast (60,000 sg. ft.), and the ability to host large trade-shows or two major conventions simultaneously.  The expansion will result in 280,000 additional room nights, more than $140 million in economic impact annually, and 2,000 hospitality-related jobs equaling more than $150 million in economic impact.  The City and its partners are working to market Philadelphia as a destination, especially to hotel developers.  "Our message is invest now and reap the coming rewards as the region's economy takes off", said Mayor Michael A. Nutter.

It is expected that an additional 1,500-2,000 hotel rooms will be essential by 2013 to meet the needs of the expanded Convention Center, growing by 62 percent and ability to host two conventions simultaneously or one large trade show. Philadelphia has already added 500 hotel rooms in anticipation of the Convention Center expansion.  In October 2009, two new hotels joined the Philadelphia Hospitality landscape.  Kimpton's 230- room Hotel Palomar at 17th and Sansom streets, and the 92-room Four Points by Sheraton right across from the Convention Center.  Le Meridien Philadelphia, a 201-room hotel opened last May at 1421 Arch Street.

Some future projects that have been in the works but have stalled for various reasons are the 268 room Intercontinental Hotel proposed for 1601 Vine Street.  This mix use project will be a 530' tower containing luxury condominiums, a hotel on the first 16 floors, Best Buy, and a Whole Foods market.

American Commerce Center- 320 unit, 26 story 5- start hotel connected to the proposed American Commerce Center. The hotel will have a 3 story lobby, a 2 story glass enclosed skybridge and roof garden.  This project will be LEED Certified.

Kimpton Hotel Monaco- In 2010 Kimpton acquired Philadelphia's historic Lafayette Building with plans to convert the 11 story office building into a 271 room, four star Hotel Monaco.  Construction is slated to begin in Spring 2011 with a 2012 completion date.

Proposed restoration and Hotel addition project to save the historic Boyd Theater.  Developed by Hal Wheeler, the project called for a full restoration of the theater, but demolition of the stage house for connection to the hotel.  The 28 story 320' tower was said to be the home of the new Kimpton Monaco hotel, but things obviously have changed.  There is still no word on who the future tenant will be or if the project will still happen.  Hopefully we will see this in the future!

Drexel University wants to add a new hotel and conference center at 30th and Market between 30th and 31st streets.  The University has been reviewing two proposals by competing national brands, a Renaissance by Marriott and a Westin by Starwood.  Drexel will not be constructing the hotels; rather a ground lease agreement will be signed between Drexel and the winning hotel chain.  The agreement will provide the chain with a 50-90 year lease for constructing on Drexel property.  The project had a 2011 completion date but nothing has happened here yet.  This many be due to economic issues.