PHILADELPHIA-One of the nation's biggest student-housing firms is venturing into the hospitality business. Locally based Campus Apartments is building a $50-million Homewood Suites by Hilton here near the University of Pennsylvania in University City.

David Adelmen, the firm's chief executive, tells GlobeSt.com that the company decided to take on the venture because of the strong demand close to the university for an extended-stay hotel. The development, which just broke ground, is also close to Penn Medicine and the Children's Hospital of Philadelphia. Plus, management can keep it under close watch, being based in the same city.

And it might not be the last one that Campus Apartments undertakes. "It's certainly a project we'd consider doing in the future for universities," Adelman says.

Getting financing for the project was one of the biggest challenges, and a number of entities are providing the funding. Financing is provided jointly by the Commonwealth of Pennsylvania, the Philadelphia Industrial Development Corporation (PIDC), The Reinvestment Fund (TRF, US Bank Community Development Corporation and Beneficial Bank.

Adelman says that developing a extended-stay hotel is not that much of a learning curve for his firm. The operator of about 27,000 student-housing beds has also developed retail and mixed-use projects, and having Hilton as a collaborator doesn't hurt as well.

The Homewood Suites by Hilton, at 4109 Walnut St., is set for a spring 2012 opening. The 110,000-square-foot facility will contain 136 suites, a pool, snack bar and other amenities. Campus Apartments is shooting for LEED certification of the project.