HFF Arranges Financing for W + Element Hotel in Philadelphia

PHILADELPHIA, PA—Holliday Fenoglio Fowler 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, PA.

HFF worked exclusively 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 Street 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 has 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 is 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 square feet for a typical room with a king-sized bed and 800 square feet 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 square feet of meeting space; a 2,900-square-foot full-service spa; a 1,400-square-foot 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.

Element Philadelphia will provide a smart, sustainable hotel experience on levels 9 through 31 with an average of 20 rooms per floor.  It will house 460 studio, one- and two-bedroom guest rooms averaging 400 square feet for a king room and 600 square feet for a suite, each room featuring a fluid design of modular furniture, a fully-equipped kitchen with a dining area and separate sleeping and living areas.  Element Philadelphia will also feature a breakfast area where guests can enjoy a healthy Rise breakfast each morning and Relax evening reception three nights a week – both complimentary.  Additional amenities will include a Restore pantry stocked with fresh, convenient items to prepare in-room, a meeting room totaling 470 square feet that can be divided into two rooms, a 750-square-foot fitness center and a separate 7,500-square-foot lobby and elevators located on the second floor.  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.