For a decade, the property has each year been awarded Five Diamonds by AAA, noted Jones Lang LaSalle Hotels’ managing director, Bob Webster, who led his company’s team along with Tim Southard, senior vice president, on the transaction.

Jay H. Shah, CEO of Hersha Hospitality Trust, says, “This AAA Five Diamond hotel boasts the largest guestrooms and the best location in the city. The property is ideally situated on Philadelphia’s famed Rittenhouse Square, within walking distance to Center City’s primary corporate demand generators and its premier retail corridor.”

The Rittenhouse is set at the heart of downtown Philadelphia, which PKF Hospitality has predicted to be a top-five growth market over the next several years.

Hersha has plans in place for upgrades and expansion to improve operating margins and maximize its investment in the hotel property, Shah said. “The revenue from the adjacent parking garage and the income from the retail and office leases will also provide consistent cash flow,” he added.

Hersha Hospitality Management, one of three Hersha companies, has assumed management of the hotel, which is also home to the highly-rated Lacroix Restaurant, Bar 210, and a full-service Adolf Bieker Spa & Salon.

The hotel was developed, owned and previously managed by The Rittenhouse Development Co. Known as a haven for celebrities and dignitaries, it offers an indoor pool, fitness center, 8,500 square feet of business and social function space, and 100 underground parking spaces.

Hersha Hospitality Trust, a self-advised real estate investment trust, is the owner of 67 hotels in major urban markets, including New York, Washington, Boston, Los Angeles and Miami.