With more than 600 combined guest rooms and an annual
event list that attracts the who's who in business and politics, they are
centerpieces in downtown Harrisburg.
Over the last two years, each has had ownership changes.
The Hilton Harrisburg was acquired in June 2012 by
Colorado-based Greenwood Hospitality Group. The neighboring Crowne Plaza
Harrisburg-Hershey, which has been in foreclosure and court-appointed
receivership over the last three years, was sold in August to the New
Jersey-based Friendwell Group.
By this time next year, those owners will have invested
$10 million, maybe more, to improve the guest experience and better position
their hospitality properties for the future.
Greenwood has been upgrading the 24-year-old Hilton since
the beginning of last year — an investment that could reach $10 million,
according to Bill Kohl, a Greenwood partner, who has overseen the property
since it opened in 1990.
“Over three more years, it may get up to that,” Kohl
said.
At the Crowne, which was purchased for $6 million,
initial upgrades are expected to total $2 million, said Kalpesh Vakil, a local
Friendwell partner and owner of The Coliseum entertainment megaplex in Hampden
Township.
Here's what you need to know about the changes:
New restaurants
By the end of 2015, Greenwood expects all internal
renovations at the Hilton to be complete.
The hotel is putting the finishing touches on two
restaurants: 1700 Degrees Steakhouse, a high-end steakhouse that will
incorporate the facility's existing wine list, and Ad Lib Craft Kitchen and
Bar, a more casual classic American tavern. They will replace The Golden Sheaf
and Raspberries.
The new restaurants will both be where Raspberries had
operated. And a new entrance will be added to access the restaurants rather
than solely through the hotel, Kohl said.
“We're hoping to be open by Dec. 4,” he said of the
restaurants, with staff training about to commence.
The restaurants alone cost about $2 million to upgrade,
Kohl said. The original idea was to renovate the existing facilities, but the
company opted instead to go with new concepts.
“You have to keep up with current trends,” he said.
“Dining trends change over the years. And though I think we were able to do
that with the food and service, we were hamstrung without having the
appropriate amount of capital to redo the rooms over the years.”
The Golden Sheaf space is being converted to a formal
boardroom plus private dining space. The bar area will be renovated by the end
of the year for use as a private dining club for The Hill Society, Kohl said.
Other work
Since renovations began last year, Greenwood has upgraded
all of the guest bathrooms with new marble tile, vanities, mirrors, lighting
and artwork. All guest rooms have been overhauled with new carpet, draperies,
chairs, lighting, artwork and case goods. New artwork adorns revamped hotel
corridors.
Once the restaurants are done, the focus will be on
meeting space renovations, Kohl said. Beyond that, Greenwood is also looking at
upgrades to the façade of the hotel to improve the arrival experience, he said.
“I still think it's the hub of hospitality in the city,”
Kohl said. “We continue to be the hub of social activity, from a fundraiser or
gala to a banquet event or wedding.”
The Hilton expects to do more than $22 million in revenue
this year, despite limited dining operations. Greenwood is hoping to double
restaurant revenue with the new concepts, Kohl said, citing sales of about $2.6
million, not including banquets.
“That will enhance the hotel's ability to attract more
customers,” said Brad Jones, president-elect and vice president of community
development for Harristown Enterprises Inc., owner of Strawberry Square. “That
is a benefit for us when we do other leasing deals or residential projects. All
that is part of the allure of being downtown.”
Crowne
Vakil, who moved to the Harrisburg area from New Jersey
in 2004 to run a Best Western Inn & Suites, said he spent the first two
months after the purchase assessing the needs of the Crowne Plaza.
The hands-on owner and his team are hard at work
replacing air-conditioning units in each of the guest rooms. Wallpaper and
carpet changes, along with new case goods, also will occur in the rooms.
Over the coming months, he said, the plan calls for the
installation of double-pane window replacements. By spring, they will redo the
hotel's stucco exterior.
“If the Hilton or the Crowne was not here, you would lose
a lot of visitors,” Vakil said, citing not just the business audience but also
the weekend leisure visitors. “We bring people in from outside (the area).”
The Crowne also is working on a more upscale menu for
Restaurant Twenty Three, which will get a new name, said Vakil, who also owns
the Howard Johnson Inn in Derry Township.
Regular investment is key to sustained success, Vakil
added: “We are here to stay. We are not going to run away.”
If that means more than $2 million or greater attention
to detail, Friendwell is prepared to do that, he said.
The Crowne posted revenue of $5.4 million from June 2013
to June 2014, he said. The hotel is on pace for $5.9 million this year, with
the goal of $6.5 million to $7 million in 2015.
“We don't chase the revenue,” Vakil said. “We have a
service and product focus. The business will come.”
Source: Central
Penn Business Journal
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