The Ritz-Carlton Philadelphia Acquired by Carey Watermark Investors
Historic city-center hotel added to portfolio.
Carey Watermark Investors Incorporated announced that it has acquired a majority interest in the 299-room Ritz-Carlton Philadelphia in a joint venture with Philadelphia Hospitality Partners, L.P., the owner of the property.
Historic property in premierCenter City, Philadelphialocation:Originally built between 1904 and 1908 as The Girard Trust Company, the rotunda and adjacent eight-story tower of The Ritz-Carlton Philadelphia were designed by McKim Mead and White; the adjoining tower was added in 1923. The building was expanded from 8 stories to a height of 30 stories in 1931 and converted to The Ritz-Carlton in 2000.
Located within the central business district, the landmark hotel is adjacent to City Hall and within walking distance of the recently completed$50 millionDilworth Plazafountain and skating rink, as well as fine dining and upscale shopping.
One of the top 25 hotel markets inthe United States,Philadelphiabenefits from a well-diversified economic base with major sectors such as healthcare, education, legal, insurance and technology that serve as cornerstones for the market’s strength and vitality. According to PKF Hospitality Research, hotel occupancy inCenter City Philadelphiahit 76% in 2014, the highest annual occupancy since 1949.
The city is in the midst of a major revitalization with over 50 majorCenter Citydevelopments in progress representing over$4.7 billionin total investment. Some other notable, recent projects include the 2011 expansion of thePennsylvaniaConvention Center (and subsequent management change in late-2013), expansions at theUniversity of Pennsylvaniaand the Jefferson Health System and large-scale redevelopment projects of historic buildings located throughout the city.
A$21.3 millioncomprehensive renovation of the entire property is planned for Q3 2015 through Q2 2016. All rooms will receive a full replacement of soft and case goods, along with bathroom upgrades. The lobby, meeting space, ballroom, corridors, club lounge and food & beverage outlets will all be renovated as well. The venture expects to enter into an agreement with a third-party food & beverage operator to operate its newly-renovated and re-concepted restaurant and lounge.
The hotel will continue to be managed by The Ritz-Carlton Hotel Company, L.L.C., an affiliate of Marriott International. As a member of the Marriott International family, The Ritz-Carlton Philadelphia benefits from its luxury branding and Marriott’s management platform affiliation, including access to its global distribution system and The Ritz-Carlton Rewards program.