Wednesday, December 11, 2024

King of Prussia hotel sells for nearly $14M, new owner plans upgrades

 By Emma Dooling – Reporter, Philadelphia Business Journal

A Lehigh Valley hospitality group has acquired a King of Prussia hotel and plans to undertake a renovation of the property in 2025.

Bethlehem-based Steel Hospitality purchased the 129-room Hyatt Place Philadelphia King of Prussia for nearly $14 million in early October, CEO Adam Patel told the Business Journal. The sale breaks down to roughly $108,527 per key.

Steel Hospitality takes over ownership of the Hyatt Place from Los Angeles investment firm Gehr Hospitality. The company bought the property for $12.67 million in 2019 in partnership with investment advisory company Oakhurst Advisors. The sale price broke down to $98,178 per key.

The Hyatt Place was put up for online auction on real estate platform RI Marketplace over the summer with a starting bid of $3.5 million. Steel Hospitality entered into the deal to purchase the hotel prior to the completion of auction.

Steel Hospitality's acquisition of the Hyatt Place includes the property improvement plan, or the agreement through which the company will renovate the hotel to bring it up to date with Hyatt Hotels Corp.'s (NYSE: H) latest design and quality standards for the select-service Hyatt Place brand.

Patel said the first phase of the renovations will likely begin in March, while the second phase is expected to get underway next fall. The project will include updates to the guest rooms and the flooring throughout the hotels, as well as repainting the property.

The 14-year-old hotel was last renovated in 2018, according to Patel.

Full story: https://tinyurl.com/ajuucz98

www.omegare.com

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