Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHILADELPHIA-If winning the World Series wasn’t enough, this city was greeted by news today that its luxury-hotel market will get a big boost. A joint venture between Hilton Hotels Corp., Mariner Commercial Properties, private investor Brook Lenfest and Gatehouse Capital Corp., plans to bring a Waldorf Astoria Hotel and Residences to the corner of 15th and Chestnut streets.

The $420-million development is planned for a 2012 opening and will total 58 stories at 670 feet. It will include 136 private residences starting at $1 million, while the hotel will have 175 guest rooms. Also in the works are a 14,000-sf spa, 11,600 sf of conference space and room for a 2,140-sf boutique shop and 7,000-sf restaurant on the ground floor.

Tim Mahoney, president and chief executive officer of Ardmore, PA-based development firm Mariner and Lenfest, who is chairman of communications firm NetCarrier, acquired the site in 2000. Dallas-based Gatehouse, which has invested in W hotels across the country as well as other brands, signed on to the development site last year.

The developers are lucky that the hotel isn’t opening for a while, given the economy, Robert Fahey, executive vice president of CB Richard Ellis’ investment properties institutional group, tells GlobeSt.com.

“I think if the building were to open today, there’s a decent chance it would not be successful,” he says. “But in a normal economy, Philadelphia is in need of an alternative to the Four Seasons and the Rittenhouse. In a healthier environment, I think it would do well.”

The occupancy rate is the city right now across property types is about 65%, Fahey points out.

Hilton will manage the Waldorf. It’s Waldorf-Astoria Collection of hotels include the original Waldorf, in New York City; the Arizona Biltmore Resort & Spa, in Phoenix; Grand Wailea Resort, in Maui, HI; La Quinta (CA) Resort & Club; Qasr Al Sharq, in Saudi Arabia; and Rome (Italy) Cavalieri.

Future Waldorfs are planned for Beverly Hills; Montreal and Orlando and Sarasota, FL.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.