The ownership of Parx Casino is setting aside plans to build a 300-key hotel on the property amid concerns about the future of gaming in the Keystone State.
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Owner Greenwood Racing is in the process of purchasing the Inn at Fox Chase in Bensalem, according to the Philadelphia Business Journal. It plans to renovate the existing hotel property across from the casino’s parking lot.
The transaction is expected to close by July 1, but other terms of the deal, including the price, weren't disclosed to the publication. However, the hotel's current owner, Innovative Hospitality Management, shelled out $13.75M for the property just last year, records show.
If the sale closes as planned, Greenwood will take over the 167-room hotel at 3227 Street Road and get to work renovating it over the next six to 12 months, Marc Oppenheimer, chief marketing officer at Greenwood Racing, told the PBJ.
Meanwhile, the dream of a multimillion-dollar hotel development on the site of the 260K SF casino has screeched to a halt, at least for now, Oppenheimer said. The development would have featured a direct attachment to the casino, Pennsylvania's largest.
Greenwood won local government approval to build a ground-up, 13-floor hotel but hit the brakes, apparently waiting for the odds to be more clearly tilted in its favor. The company is closely watching upcoming moves from the Pennsylvania Supreme Court on whether games of skill will remain legal in Pennsylvania. Such games are located in places like convenience stores, siphoning potential revenue from casinos.
“Until we have greater clarity on those things, we weren't comfortable making a nine-figure investment in building a new project at this property,” Oppenheimer told the PBJ.
Renovation plans for the existing six-story Inn at Fox Chase include adding 16 higher-end suites and renovating its restaurant, bar and pool, Oppenheimer told the PBJ. The hotel will remain open during the renovations, which aren't expected to disrupt bookings.
Although the firm hasn't decided the final brand for the hotel, it will bring its quality in line with what patrons expect of Parx, Oppenheimer said.
Greenwood also acquired two office buildings adjacent to the casino for $12.5M earlier this year, according to the PBJ. Those buildings are expected to continue to operate as offices.
