HFF arranges $160m in combined financing for development of W + Element hotel in PA
PHILADELPHIA, PA — Holliday Fenoglio Fowler, L.P. (HFF) announced that it has arranged $160 million in combined financing for the development of a trophy-class, 755-room, dual-branded W + Element hotel development in Center City Philadelphia, Pennsylvania.
HFF worked on behalf of Chestlen Development, LP to secure construction financing totaling $160 million by structuring a $100 million senior loan in conjunction with $60 million in mezzanine financing. HFF placed the senior loan with Bank of the Ozarks and the mezzanine financing with Cornerstone Real Estate Advisers LLC. Vine Street Matthews, a joint venture between Matthews Southwest and Vine Street Ventures, is the developer of this project.
The completed hotel complex will be located at 1441 Chestnut St. at the intersection of 15th and Chestnut Streets in Philadelphia’s Center City. The hotels will be one block from the newly-redeveloped Dilworth Plaza and City Hall and minutes from the recently expanded Pennsylvania Convention Center in downtown Philadelphia. The development site is located in the fourth largest retail market in the U.S. with numerous upscale retail shops and restaurants within walking distance, in addition to a variety of artistic and entertainment venues.
The 55-story hotel complex will be operated by Starwood Hotels & Resorts Worldwide and scheduled to open in late 2017. W Philadelphia will be the brand’s only hotel in Philadelphia and will consist of 295 guest rooms averaging 400 s/f for a typical room with a king-sized bed and 800 s/f for a junior suite. Guest rooms will be located on levels 32 through 49 with an average of 21 rooms per floor. The W portion of the hotel complex will feature a 150-seat, three-meal restaurant; a 100-seat destination bar; a 30-seat signature W living room, the brand’s take on the traditional hotel lobby; 32,300 s/f of meeting space; a 2,900 s/f full-service spa; a 1,400 s/f FIT gym; swimming pool with a terrace area and 15-seat bar/grill outlet; 24-hour room service; a business center; concierge service and separate lobby and elevators. First introduced in 1998, W Hotels is an innovative luxury lifestyle brand and a global design powerhouse with more than 46 hotels and retreats in the world’s most vibrant cities and exotic destinations.
On track to triple its portfolio by 2017, Element is recognized as an industry leader in the eco-space and offers travelers a fresh, reimagined interpretation of the extended stay hotel experience.
The HFF team was led by managing directors John Ahmed and Anthony Cutone and director Jordan Lex.