RevereCRE

Hodges Ward Elliott (“HWE”) is pleased to offer on an exclusive basis the leasehold interest in the Sheraton Philadelphia Downtown, a 762-room hotel on 2.1 acres. The property is the second largest hotel in Philadelphia and has meeting space totaling 60,406 square feet (including a 20,000 square foot ballroom), two food and beverage outlets, and fitness center. Originally constructed in 1980, the property recently underwent an extensive renovation. Current ownership has spent over $37 million to update the guest rooms and address deferred maintenance, and has invested an additional $2.6 million this year to renovate and enhance the Property's meeting and pre-function spaces. At 762 rooms the Sheraton offers attractive economies of scale and operating efficiencies for increased profitability. The Sheraton Philadelphia Downtown presents an opportunity to invest in one of America’s foremost markets at an exceptional discount to replacement cost.

ACCESS DATAROOM

PROPERTY ADDRESS

201 North 17th Street Philadelphia, PA 19103

STORIES

ROOMS

YEAR OPENED

YEAR RENOVATED

SUBMARKET

29

762 (Including 21 Suites)

1980

2020 ($36.2M or $47,530 per key)

Philadelphia CBD

MARKET

BRAND

SCALE

GROSS BUILDING AREA

Philadelphia

Sheraton by Marriott

Upper Upscale

795,319 SF

F&B OUTLETS

The Terrace Café

Local Café

MEETING SPACE

PARKING


TRIP ADVISOR RANKING

INTEREST CONVEYED

60,406 SF (across 24 flexible rooms)

Valet: $69 Per Day

Self Parking: $53 Per Day

#21 of 97 Hotels in Philadelphia

Leasehold (expires 2118 with a Purchase Option in 2052)

OTHER AMENITIES

Fitness Center

Business Center

Indoor Swimming Pool

Dry Cleaning Service

AFFILIATION

MANAGEMENT

LABOR

Marriott International

Aimbridge Hospitality

Union

Investment Highlights

 

Situated along 17th Street, between Race and Vine Street, the Hotel occupies an irreplaceable location in the heart of Center City - Philadelphia’s fastest growing submarket - within one mile of over 65 million SF of office space and within close proximity to the city’s top leisure attractions including City Hall, Independence Hall and the Philadelphia Museum of Art. The Hotel is also located less than two blocks from the Philadelphia Convention Center (the city’s largest driver of lodging demand; 581,612 room nights in 2024), which regularly hosts more than 250 events and one million attendees annually.

Abundant, Best-In-Class Meeting and Event Space

 

The Sheraton offers an impressive 60,000+ SF of event space across 24 rooms, including the expansive 20,000 SF Liberty Ballroom. Its prime location, just two blocks from the Pennsylvania Convention Center—which experienced a significant 67.4% increase in economic impact in 2024—positions the Property to attract a rising number of corporate and private events returning to the city.

Favorable Ground Lease

 

The ground lease has 92 years remaining. Terms are favorable and easy to underwrite, with rent increasing at a fixed 2% per year with no CPI or fair market resets. The leasehold owner has an option to buy the ground in 2052 at a fixed price of $69.5 million ($91,000 per room). These are some of the most secure, predictable, and favorable leasehold terms in the market today, making the asset straightforward to underwrite.

Discount to Replacement

 

At anticipated pricing, the Sheraton Philadelphia Downtown is expected to trade at implied fee simple equivalent pricing of less than a quarter of replacement cost.

ROI Opportunities

 

The Sheraton has several large closed or underutilized spaces that could be reopened or repositioned. The shuttered pool area could be repurposed or reopened. The closed basketball gym could be reconfigured as a pickleball or padel club. The 4,000 square-foot Horizons Rooftop meeting space could be redone as a rooftop lounge and restaurant. The site also has unused FAR that could one day be used to build a tower above the convention space.

Institutional, Renovated Asset with Best-In-Class Room Product

 

A comprehensive $36.2 million ($47,530/key) renovation was completed in April 2020. Approximately $31.2 million ($41,000/key) was allocated toward a full overhaul of the guest rooms and corridors, including the replacement of all case goods and soft goods and the conversion of 240 bathtubs to walk-in showers. To further enhance the guest experience and drive incremental group and banquet demand, ownership has identified a forward-looking capital improvement plan focused on renovating the meeting and pre-function spaces, lobby, and public areas, positioning the Property for improved competitiveness and long-term performance.

Premier Convention Destination


Located just two blocks from the Property, the Pennsylvania Convention Center offers over 2.0 million square feet of function space and serves as a major driver of citywide demand. In 2024, the Convention Center generated approximately 581,612 room nights, reinforcing Center City Philadelphia’s position as a leading national meetings and events destination. Ongoing convention activity supports strong midweek and shoulder-period occupancy while driving meaningful compression across the submarket during large-scale citywide events.


EXCLUSIVE REPRESENTATIVES

Rudy Reudelhuber
Managing Director
rreudelhuber@hodgeswardelliott.com

Celina Nowicki
Associate
cnowicki@hodgeswardelliott.com

Scott Reid
Broker-ParaSell,Inc.
PA Lic.#RM424379
broker@parasellinc.com

ACQUISITION FINANCING ADVISOR

Michael Britvan

Managing Director

mbritvan@hodgeswardelliott.com

Inquiries by residents and property owners of  the State of Pennsylvania are to be made to the Pennsylvania licensed broker.
In Association with Scott Reid & ParaSell, Inc.   |  A Licensed Pennsylvania Broker #RB069068