After years of trying to weather a tough hotel market, Wilmington-based Buccini Pollin Group is surrendering two King of Prussia hotels to its lenders, writes Emma Dooling for the Philadelphia Business Journal.
The firm is handing over the keys to the Crowne Plaza Philadelphia King of Prussia and the Fairfield Inn Philadelphia Valley Forge/King of Prussia, both located right next to the King of Prussia Mall. Together, the hotels offer 306 rooms — but a slow pandemic recovery and rocky capital markets have made it tough to keep up with the $32.5 million loan balance due in June.
Buccini Pollin co-founder Dave Pollin said the decision came after exploring every option, including refinancing, selling, or extending the loan. CMBS reports show occupancy rates lagging behind area averages, and revenue from both properties falling sharply from their peak in 2016.
The Crowne Plaza, built in 1969 and renovated in 2012, features 24,000 square feet of meeting space, while the Fairfield Inn next door, a ’90s build, once served as overflow lodging.
With this move, Buccini Pollin will exit King of Prussia’s hotel scene, keeping only the Philadelphia Marriott Old City in the region. For now, the lenders’ special servicer is weighing the next steps as two of KOP’s familiar hotel fixtures await their future.
Read more about Buccini Pollin Group’s exit from the local hotel market in the Philadelphia Business Journal.
