Hersha Hospitality finally made the move and bought the Rittenhouse Hotel from the investment group Rittenhouse Development Corp. Price tag? $42 million. Hersha CEO Jay Shah told the Wall Street Journal that it's a good time to own a hotel because there's little competition in the local market. From WSJ:
Indeed, the Philadelphia hotel market has grown at rather tepid rates of late. It added 1.9% to its room base in 2009, 1.8% in 2010 and 0.9% last year, according to hotel research company Lodging Econometrics. The company predicts the market will expand by another 2.3% this year and 1.3% in 2013. Philadelphia hotels posted gains in revenue last year and are predicted by industry analysts to continue to do so this year and in 2013.
Shah says there are plan for renovations but hasn't released details.
RITTENHOUSE HOTEL PURCHASED BY PHILADELPHIA BASED HERSHA HOSPITALITY TRUST
Philadelphia -- (March 2, 2012) — Hersha Hospitality Trust (HT) added an iconic Philadelphia luxury hotel, The Rittenhouse Hotel, to its collection of 66 properties in urban gateway markets nationwide. The 111-room independent hotel is rated AAA Five Diamond and often accorded accolades such as “Best in Philadelphia” and “Best Hotels in the World” by Travel + Leisure. Hersha Hospitality Management will assume management of the hotel.
“We look forward to being long term owners of The Rittenhouse,” said Jay H. Shah, Chief Executive Officer, Hersha Hospitality Trust. “Philadelphia is poised to become one of the country’s top five travel destinations over the next four years. While The Rittenhouse remains a Philadelphia hospitality treasure, we believe that room exists for enhancements that will continue the hotel’s exceptional reputation and begin to tell an exciting new ‘Philadelphia Story’ about the city that is our home and has our hearts.”
Opened in 1989, The Rittenhouse, a member of Leading Hotels of the World, features spacious guestrooms that range in size from 410 to 2,200 square feet. The hotel is also home to Lacroix Restaurant, Bar 210, full-service Adolf Biecker Spa and Salon, swimming pool, fitness center, ample space for social and business functions and 400 parking spaces. The hotel is ideally situated on Philadelphia’s famed Rittenhouse Square, within walking distance to the heart of the business district and premier shopping corridor. Additionally, the hotel affords easy access to the Philadelphia Convention Center and all of the City’s numerous arts, cultural, dining and entertainment venues.
Ted Teng, President and CEO of Leading Hotels of the World said, “With its upcoming purchase of The Rittenhouse -- the most prestigious address in Philadelphia -- Hersha Hospitality Trust will further enhance the hotel’s global recognition as a Leading Hotel."
“We are very pleased to be transitioning stewardship of The Rittenhouse to Hersha Hospitality Trust,” said David G. Marshall, President of the Rittenhouse Development Corporation, the original developer and one of the owners of the hotel. “We have great confidence that Hersha will build upon the fine legacy that we created at this iconic Philadelphia hotel.”
The Rittenhouse is brilliantly positioned, thanks to a wonderful leadership and staff. Hersha will retain all of the current associates and the Company is very excited to welcome them to the Hersha Family. The gracious suites have been a favorite residence of notables such as actor Robert De Niro, former President George H.W. Bush, Rolling Stone Mick Jagger, and opera star Luciano Pavarotti. In addition, the hotel has been a significant supporter of the arts in Philadelphia throughout the years. This spring, the property will be a major sponsor of the legendary Barnes Foundation -- one of the world’s finest holdings of impressionist, post-impressionist, and early modern paintings -- when it opens to the public in Center City Philadelphia in May.
“We believe that returning guests and new customers will enjoy the classic luxury found only at The Rittenhouse for years to come,” said Shah.
About Hersha Hospitality Trust
Hersha Hospitality Trust is a self-advised real estate investment trust, which owns 67 hotels in major urban gateway markets including New York, Washington, Boston, Philadelphia, Los Angeles and Miami totaling 9,598 rooms. HT follows a highly selective investment approach and leverages operational advantage through rigorous and sustainable asset management practices. For further information on the Company visit our website at www.hersha.com.
· Short Supply Drives Hotel Sale in Philadelphia [Wall Street Journal]