Hyatt on Penn’s Landing to be rebranded, undergo “extensive” renovations

The Hyatt Regency on Penn's Landing is changing hands and will now be a Hilton Hotels & Resorts property. The hotel at 201 S. Columbus Blvd. is also set for extensive renovations and will be rebranded as a full-service Hilton hotel. Pyramid Hotel Group will take over as manager of the 340-room hotel, a position held by Hyatt.

"As we approached the end of the management contract, ownership [Penn's Landing Partners] looked at a number of different options that they wanted to pursue based on their own internal needs, which led them to this direction," said Mike Costello, general manager of the hotel.

The scope of the renovations is still being determined with no specifics in place yet, including the timeframe and what's required for Hilton to obtain the franchise. Costello, however, said it would be "extensive."

Renovations and conversions won't happen until a product improvement plan (PIP) is conducted and executed. Typically before a hotel is converted, a PIP is required, allowing a brand consultant to determine what changes need to be made to fit the new brand. This could include architectural changes to aspects like the lobby or new furniture and draperies.

The transition is expected to take place by the end of January, while the PIP is expected to be completed by the end of March, according to sources close to the situation.

All staff and management positions will remain in place during and after the rebranding.

Hilton in the Philadelphia market

"It's a fairly common thing for owners to look at brands and try to assess whether they can get more push from other brands," said Greg Stafford, general manager of the Hilton Inn at Penn and president of the Greater Philadelphia Hotel Association. "Hilton brings an enormous reservation system. … Most people in the industry would concur that Hilton and Marriott have the strongest reservation systems and frequent user programs."

There's a pent-up demand for Hilton in Philadelphia, Stafford said, so having another branded hotel would benefit the market since "a lot of travelers are points junkies," who have become loyal to big branding companies and like to see their points add up.

Along with Marriott, which has a big presence in Center City, Hilton is a heavy hitter in the country. But there's a disproportionate amount of Hilton products in the Philadelphia market.

"You have the DoubleTree [at the airport and Center City], the Inn at Penn and then you have select services like the Hilton Garden Inns and the Homewood Suites," Stafford said. "Then look at the amount of products Marriott has. We're both similar-sized companies, and yet we don't have nearly [the same] presence."

Stafford said to expect Hilton to pursue other opportunities in the market as the city bounces back in terms of hotel performance after a slump. The city closed 2014 with a record 76 percent hotel occupancy — the highest it's been in 65 years.

Source: Philadelphia Business Journal