East Market Turns Part Of Residential Portion Into Extended-Stay Hotel

The developer of the East Market project is modifying part of its multifamily portion into an extended-stay hotel.

National Real Estate Development announced Monday that it would be setting aside five of the 23 floors of 1199 Ludlow, or the West Tower at East Market, for 60 fully furnished apartments for temporary residents, the Philadelphia Inquirer reports.

The floors will be branded as Roost, operated by Philly-based Method Co., which already has Roost locations at 19th and Chestnut streets (Roost Rittenhouse) and 15th and Chestnut streets (Roost Midtown). Both of those locations contain 27 guest suites, making the Roost at East Market the brand's biggest location yet.

The residential portion of 1199 Ludlow is set to contain 240 units, and 180 of them will remain as longer-term rental apartments. Roost will add to a growing list of extended-stay hotels that act as furnished apartments for high-end guests, most notably Korman Communities' AKA brand that has locations in Rittenhouse Square and the FMC Tower in University City. Method CEO Randall Cook is a former executive at Korman.

The apartments at 1199 Ludlow, set to deliver in mid-2018, are designed to have a symbiotic relationship with PREIT's redevelopment of the Gallery into Fashion District Philadelphia across Market Street. According to PREIT CEO Joe Coradino, retail centers are growing increasingly motivated to use multifamily units to drive business, and multifamily tenants see nearby retail as a decision-making factor in choosing between apartments at the highest end of rents in the city — which 1199 Ludlow will attempt to get.

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