Tuesday, August 20, 2013

253-Room Hotel in Philadelphia West Sold for $31 Million


DoubleTree Suites by Hilton Philadelphia West, 650 Fountain Road, Plymouth Meeting, PA

Rich Lillis
MIAMI, FL, Aug. 20, 2013 - Colliers International is pleased to announce the sale of the lender-owned 253-room DoubleTree Suites by Hilton Philadelphia West to Arden Group for $31.1 million or approximately $123,000 per room. The transaction reflected a capitalization (CAP rate) rate of 8% prior to transaction and renovation costs.  

The 7.9 acre property at 640 Fountain Road, Plymouth Meeting, PA, 19462, is just west of I-476 and within the Plymouth Meeting Executive Campus. Four of the country's top 14 employers are located minutes from the hotel, which includes 8,000 square feet of banquet and meeting space.

Kent Schwarz
 Representing the seller, an affiliate of LNR Partners, were brokers Rich Lillis, Executive Vice President, Colliers International Hotels, Kent Schwarz, Executive Vice President, Colliers International Hotels, both based in the South Florida offices; and Carl Neilson, Senior Vice President, Colliers International Philadelphia. The team coordinated the online auction transaction through Auction.com.

Carl Neilson
"The hotel property and our sales process brought considerable interest from wide variety of prospective buyers including publicly traded REITs, institutional hotel investors, Philadelphia-area investors, and regional and national hotel companies. The bidding was quite spirited," said Rich Lillis of Colliers.

Craig A. Spencer
 Philadelphia-based Arden Real Estate Partners I, LP, acquired the hotel. Commenting on the investment, Craig A. Spencer, CEO of Arden Group, noted that "this is our fourth hotel purchase in the past nine months, and is consistent with our strategy of investing in opportunities for value creation."

 Arden plans to invest an additional $6 million in renovations and other changes required by the Hilton franchise.

 For a complete copy of the company’s news release, please contact:

Crystal Proenza
Vice President of Marketing
Colliers International South Florida
Commercial Real Estate Services
Tel: 305 476 7138


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