Home2 Suites by Hilton, the award-winning, mid-tier extended stay brand, today joined Parkway Corporation and Wurzak Hotel Group in hosting the groundbreaking ceremony for its largest property to date.
The 246-suite hotel will sit adjacent to the recently expanded Pennsylvania Convention Center at 12th and Arch Streets, and is one of the first new-build hotels in Philadelphia in over a decade. The property, owned by 1200 Arch Hotel Partners LP, is scheduled to open in the summer of 2013.
“Growing demand for hotel development in urban markets is translating into demand for extended stay properties,” said Bill Duncan, Global Head of Home2 Suites by Hilton. “The flexibility of the Home2 Suites model combined with its many added value benefits will make it a go-to option for business travelers and tourists visiting Philadelphia and the Pennsylvania Convention Center.”
Leaders from Parkway Corporation, Wurzak Hotel Group, Hilton Worldwide and Capital One Bank joined Philadelphia Mayor Michael A. Nutter, State Senator Larry Farnese, State Representative Dwight Evans and other elected state and local officials at the event. The eight-story hotel complex is part of the second phase of construction of the Pennsylvania Convention Center, and will create 123 new construction jobs and 146 permanent hotel jobs.
“This project is the result of a public-private effort to add hotel rooms and many new jobs to the city and the Convention Center,” said Robert Zuritsky, president, Parkway Corporation. “We never would have accomplished this undertaking without a series of incentives from the state and the city, and we are thankful for their support.”
“I am delighted to attend today’s groundbreaking for the Hilton Home2 Suites, the first newly developed hotel in Philadelphia since the expansion of the Pennsylvania Convention Center,” said Mayor Michael A. Nutter. “Philadelphia’s hospitality sector creates jobs, increases tourism, and has a perfect synergy with all of those other sectors which have meetings, conferences and conventions in our city. As we continue to expand our museums, attractions and restaurants that serve both residents and visitors, we will need hotels to meet this increasing need.”
Located at 1200 - 1212 Arch Street, Philadelphia, PA 19107, the hotel will feature over 2,000 square feet of meeting space and 9,750 square feet for ground floor retail and restaurants. The total project cost is $60 million and will be partially funded with $2.75 million in Redevelopment Assistance Capital Program (RACP) funding and an Infrastructure and Facilities Improvement Program (IFIP) grant from the Commonwealth of Pennsylvania. The Philadelphia Industrial Development Corporation (PIDC) will provide $5 million in HUD 108 loans and the building will receive $3 million in EnergyWorks funding from PIDC and The Reinvestment Fund. The energy conservation measures for the hotel will include a partial green roof, high efficiency HVAC system and significant energy performance upgrades, all in line with the Home2 Suites brand sustainability practices. L.F. Driscoll will oversee construction of the development.
The property is being jointly developed by Parkway Corporation and the Wurzak Hotel Group. This is the first mixed-use hotel and retail facility for the Parkway Corporation, and the second venture between the Wurzak Hotel Group and Hilton Worldwide.
“Wurzak Hotel Group and its investment partner DoveHill Partners are proud to have partnered with Parkway Corporation on the development of our newest project. We expect the hotel to be a flagship not only in our portfolio but also for the City of Philadelphia and the Home2 brand because of its size and prominent location across from the Convention Center and just blocks from Philadelphia’s central business district. This is an exciting time to own and operate hotels in Philadelphia because the city’s lodging fundamentals are among the highest in the country,” said Jake Wurzak, principal, Wurzak Hotel Group.
“Capital One Bank is excited to support the development of the Home2Suites Hotel, which presents great economic opportunity for Philadelphia through the collaboration of local leaders and government agencies, including the Philadelphia Industrial Development Corps and 1200 Arch Street Associates,” said Rick Lyon, Executive Vice President of Commercial Real Estate for Capital One Bank. “Capital One Bank is committed to investing in the communities we serve, and in this case, we are proud to expand our initial $25 million commercial real estate loan by securing an additional $10 million in New Market Tax Credits though our Public Finance team.”
The Home2 Suites Philadelphia Center City joins nine properties presently under construction. The brand currently operates seven hotels throughout the U.S. and has 70 planned properties in the development pipeline.