DoveHill Capital Management has completed its investment in the 207-key Hilton Philadelphia City Avenue and 122-key Homewood Suites Philadelphia City Avenue dual-branded property.
The Hilton and Homewood Suites operate as one property, sharing 26,000 sq. ft. 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, according to DoveHill. The properties will be managed by the Wurzak Hotel Group, DoveHill’s vertically integrated hospitality management company.
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 more than $10 million in capital investment since 2015.
“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, DoveHill Capital Management.
The hotels are just four miles from downtown Philadelphia. The city’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.
Charles Paloux, EVP, investments, DoveHill, added, “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.”