DoveHill Capital Management Completes Investment in Hilton Philadelphia City Avenue and Homewood Suites Philadelphia City Avenue

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Oct 10, 2023, 09:00 ET

FORT LAUDERDALE, Fla., Oct. 10, 2023 /PRNewswire/ -- DoveHill Capital Management announced today its investment in the dual-branded Philadelphia property.

The DoveHill team successfully negotiated a tremendous investment at an incredibly attractive basis with in-place debt financing in two institutional quality assets in one of the top cities in the United States.

"While most hospitality investors are sitting on the sidelines, DoveHill continues to source compelling off-market deals by leveraging our competitive advantages and focusing on opportunities with a strong risk-reward asymmetry," said Jake Wurzak, CEO of DoveHill Capital Management.

Headquartered in Fort Lauderdale, Florida, DoveHill Capital Management is a vertically integrated hospitality investment and development organization. Unlike other investment firms, DoveHill Capital Management has continuously focused—even during the COVID era—on expanding its hotel portfolio through preferred equity and wholly owned investments. The group has grown its portfolio to 20 properties across North America with this dual-branded property in Philadelphia Pennsylvania: the 207-key Hilton Philadelphia City Avenue (the "Hilton") and the 122-key Homewood Suites Philadelphia City Avenue (the "Homewood Suites").

Together, this is a 329-key, institutional dual-branded hotel with a highly efficient operating model. The Hilton and Homewood Suites effectively operate as one property, sharing 26,000 square feet of meeting space and 1,300 parking spaces. These synergies result in a highly efficient operating model that consistently delivers strong results, as evidenced by the hotel's historical and in-place cash flows. The properties will be managed by DoveHill's vertically integrated hospitality management company, The Wurzak Hotel Group.

The Hilton was built in 2000 and was fully renovated in 2016, while the Homewood Suites was built in 2005 and fully renovated in 2022. The properties have benefited from over $10 million in capital investment since 2015. DoveHill plans to strategically invest in guest-facing, ROI-driven capital projects and provide targeted improvements to build upon the Hotel's tremendous reputation.

Located at 4200 City Avenue, Philadelphia, the properties are well-positioned in an area burgeoning with upgrades, new developments, and improvements. The properties are just four miles from Downtown Philadelphia—at the epicenter of Bala Cynwyd's submarket and the Main Line, Philadelphia's most affluent residential neighborhood. Surrounded by both offices and upscale retailers, Philadelphia's largest green space, Fairmount Park, is also close by. Less than a half-mile from the entrance to I-76, the properties enjoy access to downtown Philadelphia, Conshohocken, and King of Prussia in minutes.

Charles Paloux, Executive Vice President of Investments, adds, "Our company has had deep experience with the Philadelphia market, and we believe that group and corporate business has shown significant growth over the last months. Additionally, this property benefits from incredibly accretive in-place debt and an unmatched basis which we expect will produce outsized returns for our investors."

The Hilton and Homewood Suites Philadelphia City Avenue Properties

The dual-brand property benefits from its strategic affiliation with Hilton Worldwide—one of the premier lodging brands in the world with 18 brands and 7,061 properties across 123 countries. Hilton has an unquestioned advantage in the lodging industry due to the strength of its reservation system and loyalty program, Hilton Honors, which boasts nearly 146 million members globally.

About DoveHill Capital Management

DoveHill Capital Management is headquartered in Fort Lauderdale, Florida, and is a vertically integrated hospitality investment and development organization with a portfolio of urban infill, lifestyle hotels, and premium branded full-service assets across North America with a heavy concentration on the East Coast.

The firm's core competency is the creation of highly differentiated, locally curated properties set in high-growth and high-culture environments with diverse demand generators and distinct barriers to entry.

DoveHill seeks out investments in full-service, lifestyle properties with a focus on value-add and other strategies to enhance properties and create differentiated advantages. As part of its strategic vision, after investing at attractive entry points, DoveHill works to reposition and transform the real estate asset to enhance the value for its partners and investors.

For more information and details on the best investment opportunities to consider, see www.dovehillcos.com/deal-reward-program.

For more background on DoveHill Capital Management, visit www.dovehillcos.com.

Media Contact: Meaghan Peeler

[email protected]

215-689-0245

Related Links

https://www.dovehillcos.com/

SOURCE DoveHill Capital Management, LLC