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HEI Buys Embassy Suites in Center City

PHILADELPHIA-With its acquisition of the 288-suite property at 1776 Ben Franklin Pkwy., HEI doubles its stake in the Philadelphia hotel market.

By Marita Thomas | Updated on October 31, 2006

PHILADELPHIA-Norwalk, CT-based HEI Hospitality has acquired the 288-key Embassy Suites Hotel at 1776 Ben Franklin Pkwy. The seller is New York City-based Blackstone Group, which acquired the property as part of its February 2006, $367-million acquisition of Meristar Hospitality’s hotel portfolio.

Embassy Suites is HEI’s second hotel here. It also owns the 289-room Westin Philadelphia at 99 S. 17 St. at Liberty Place. Steve Mendell, executive vice president of acquisitions and development, tells GlobeSt.com, “We’re always looking at properties in Philadelphia as well as the Northeast and nationwide. A lot of positive things are happening in Philadelphia.” He declined to disclose the price of this acquisition, which was marketed by Washington, DC-based Molinaro Koger. A call to Rob Koger was not returned by deadline.

On condition of anonymity, a local broker who has been involved in hotel sales here tells GlobeSt.com, “my guess is that the property was probably priced at between about $125,000 to $135,000 a key.” That would translate to between $36 million and $39 million.

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