Blackstone Sells Downtown Philadelphia Hotel
- Mar 15, 2019
Cambridge Landmark, a hotel-focused private equity firm based in Miami, has acquired Philadelphia 201 Hotel, a 757-key full-service property, from The Blackstone Group. Financial terms were not disclosed.
Formerly known as Sheraton Downtown Philadelphia, the property will regain the Sheraton brand following a $28 million renovation as part of a new franchise agreement with Marriott International. Plans include upgrading the guestrooms, creating new suites, enhancing the lobby and meeting space and adding a new Sheraton Club Lounge.
“This acquisition demonstrates Cambridge Landmark’s focus on ownership-driven hotel investment with assets in the largest U.S. domestic markets,” Pedro Miranda, managing partner, said in a prepared statement. “This property holds great potential, with its premier location in one of the most vibrant cities in the U.S. With the forthcoming renovations and refurbishments, we expect this hotel to drive long-term value, and be an integral part of the expanding Cambridge Landmark portfolio.”
The hotel is located in Center City, two blocks from the Pennsylvania Convention Center. It is also within walking distance to Love Park, the Franklin Institute and the iconic Philadelphia Museum of Art. The property—the second-largest hotel in Philadelphia—has 58,000 square feet of versatile event space, an indoor swimming pool, a fitness center, as well as restaurant and lounge space.
Growing a Portfolio
Cambridge Landmark acquired its first hotel, the 389-key Sheraton Orlando North in Maitland, Fla., minutes from downtown Orlando, Fla., in June 2017. At that time, the firm signed a new franchise agreement with Marriott International and began a multimillion-dollar renovation at the property.
The private investment company purchased two hotel properties in 2018—the Grand Orlando Resort at Celebration, a 718-key, full-service hotel in Orlando’s Celebration-Kissimmee area, and the 481-key, full-service Hyatt Regency Milwaukee. The Orlando property was acquired in February 2018 while the Milwaukee hotel was purchased in July 2018, when Cambridge Landmark bought it from Noble Investment Group for a reported $37.3 million.
Both of those hotels have excellent locations. The Grand Orlando Resort at Celebration is within 1.5 miles of the Disney World theme parks and 11 miles from the Universal theme parks. The Hyatt Regency Milwaukee is in the city’s downtown district and adjacent to the Wisconsin Center convention facility and close to the new Fiserv Forum, a multi-purpose arena that is home to the NBA’s Milwaukee Bucks.
Philadelphia’s hotel scene
Last year, the Buccini/Pollin Group acquired the Sheraton Philadelphia Society Hill Hotel, a 364-key property in Philadelphia’s Old City district, from RLJ Lodging Trust for $95.5 million, or about $262,000 per key. The owners planned a renovation and rebranding for the hotel, which had about 20,000 square feet of meeting and event space at the time of purchase.
Image courtesy of Marriott International