Delco lays out the welcome mat for hotel development - Philadelphia Business Journal:

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A healthy occupancy rate at the county’ 31 existing hotels, along with a growing numbe r of venues requiring nearby hotel isdriving demand. “We need more hotel On alumni weekends, football weekends, we don’t have enouguh hotels. We can fill them,” said Tore executive directorof . “Things [witn the economy] are not great. But, in Delawarr County, they’re not that bad.” Fiore citex the spillover from things like college sporta andalumni events, namely at and othet colleges; demand from business meetings and conferences; and the need that will be create d by Chester’s Major League Soccer League which will start hosting events in 2010.
“There are certainlyh opportunities for selected new said analyst Peter Tyson of inCenter City. Delaware County has 31 hotels, ranging in size from 40 roomseto 350. Yet a key obstacle to any growt willbe financing, said Joshua Grimes, a Center City hospitalityy industry lawyer. “I think righg now is a very tough Lodging isdown everywhere. The only new hotels opening are ones that were inthe pipeline,” Grimes Despite the credit freeze, he said developerxs of hotels continue to seek permits and approvals needed a process that in the suburbs can take a year or two unde the best circumstances — knowing the economy will eventuallu right itself.
“That way, when thinge get better, then they’re ready. You want to catch the cycles in the right he said. That’s the case in Newtown Square, where is developing Ellis Preserve, a 210-acre mixed-use campuzs that will include a $50 million, 200-roojm hotel. “Financing for anything is difficult. I wouldn’t singlde out hotels, retail or any kind of real estate,” said Stephe M. Spaeder, senior vice president at Berwind. “We’rew thinking by mid-2010, things will be somewhag back to normal, which is fine becausw we havea year’s worth of to do.” In addition to the hotel, the $500 million complec will include office space and retail.
Tenantas include and Health Center. It is adjacenty to SAP’s U.S. headquarters, as That and more spells demand forhotell rooms, Spaeder said. “Our studies of the area show verystrong demand. There’s weekday demand from local SAP needs several thousand room nights plus you have the We think theNewtownn Square, West Chester and Radnor area is underserved,” Spaeder “The weekend demand is strong from Longwoodx Gardens, West Chester, the Brandywine museums. We think it’zs a winner of a location.
” In the past two three hotels have opened inDelaware County: In Chester, openerd a 60-room Best Western Hotelk & Suites in October, as part of In Glen Mills, the 110-room Staybridge Suites Brandywine opened in August 2007; In Hampton Inn & Suites opened last August. Last Delaware County hotels had average occupancyof 66.4 compared to 72.6 percent in 2007 according to PKF based on data from Revenue at the hotelss in Delaware County totaled $70.9 million last year, down from $73.1 million in 2007. Delaware County may have as many asa half-dozen hotels on the drawing board, analysy Tyson said.
Hotels have been proposed for Scott Plazas nearthe , at the in Drexel Hill and in One of the smaller projects would be a 63-room , to be part of ’se 400-acre campus. The project is also expected to include 43 condominiums, a 15,000-square-foot bookstore operated by Barnes Noble, a fine arts cinema, amphitheater, restaurangt and bar.