Rittenhouse hotel to undergo more renovations

It's already undergone millions of dollars worth of renovations in the past four years, but The Rittenhouse hotel is set to undergo more changes.

The 118-room Rittenhouse Square hotel, which opened in 1989, has undergone $15 million worth of renovations since 2012, when Hersha Hospitality Trust (NYSE: HT) purchased the hotel.

For the latest round, Hersha will invest $1 million to renovate the hotel's ballroom and pre-function spaces, and to convert two board rooms into private dining rooms.

The month-long renovation will begin around Dec. 20, according to General Manager Reginald Archambault.

The ballroom and pre-function space total more than 6,000 square feet combined, and the two board room areas are at 400 square feet and 350 square feet.

The ballroom will be completely redesigned and become "much more appealing, [and] appropriate for corporate business and social events," Archambault said.

Changes include custom carpeting with The Rittenhouse logo; opening up of the windows; updated wall coverings, paint and sconces; and new furnishings like tables, chairs and linens.

"It makes logical sense," Archambault said. "We started with our lobby initially (towards the end of 2012), reimagining that space and enhancing that space."

Here are a few changes the hotel has undergone since 2012:

·         September's opening of modern Italian restaurant Scarpetta by New York-based LDV Hospitality, replacing steakhouse Smith & Wollensky

·         June's unveiling of the so-called Rittenhouse Floor, or R Floor, which features 15 rooms, including 11 suites

·         The $5 million addition of the hotel's Park Suites in 2013

·         The $6 million renovation of The Rittenhouse Spa & Club – Hair by Paul Labrecque

·         The addition of Egan Rittenhouse, a boutique floral studio

"It's almost like when you start painting rooms in a house," Archambault said of the continuing renovations. "We owe it to ourselves and to our guests to offer them consistently excellent service and a top-notch physical plant. That's what we're doing."

After the conversion, the two board rooms will be more similar to the aesthetic of private dining rooms in restaurants, including wooden floors.

The two board rooms after the conversion can still be used as meeting rooms. The problem with their previous configurations was that they served only one purpose.

"If you have a room that is thoughtfully decorated and properly furnished, it makes it more accessible and more flexible to different clients," Archambault said.

Having more private dining spaces also expands the areas guests can enjoy food from Executive Chef Jon Cichon, who oversees the Lacroix restaurant and the banquet area.

Hotel renovations are not uncommon; properties on average undergo renovations every five years or so, according to Ed Grose, president of the Greater Philadelphia Hotel Association.

Renovations are done to keep products fresh and to reflect market and consumer demands. It's also a way for properties to continue competing with other properties in the market.

Center City has about 11,200 hotel rooms, and there are at least 12 hotels in the pipeline by 2018, either proposed or under construction, meaning more supply in the Philadelphia market.

Recent Center City upgrades include this year's $25 million renovation of the Ritz-Carlton, Philadelphia, and The Sonesta Philadelphia's $30 million renovation completed in 2014.

"We're cognizant of new product coming into the market, and we're making sure we are as good if not better," Archambault said. "I'm a firm believer that new inventory — new competition — is good for the market."

"It's good for Philadelphia to have more choices in hotels," he said. "It's good for us, because it keeps us sharp."

Although The Rittenhouse hotel's newest round of renovations is smaller in scale, renovations are indicative of how brands and properties view Philadelphia in the long term.

Archambault said he's bullish on the market, both in Philadelphia and the Greater Philadelphia region.

Philadelphia had 76.7 percent in hotel occupancy last year, the highest the city’s hit since 1948 when occupancy was at 83 percent. About 41 million people visited the five-county Philadelphia region in 2015, indicating the sixth year in a row for record visitation, according to Visit Philadelphia.

Source: Philadelphia Business Journal