Chestlen Development Provides Update On Delayed W Hotel Project

1/14/21

As construction finally nears completion on the highly anticipated W and Element dual-branded hotel in downtown Philadelphia, the property's owner Chestlen Development LP today provided updates on the project including plans to open in 2021 and a recently filed complaint against Tutor Perini Building Corporation, the multi-billion dollar national construction firm it hired in 2015 as general contractor for the project.

Chestlen agreed in 2012 to build the hotel at the request of the City of Philadelphia to help overcome a hotel room shortage in Center City. With the Pennsylvania Convention Center offering more space for events, the City made it a priority to add another major hotel so that the Convention Center could attract more business. The destination will add 755 new hotel rooms and create approximately 1,000 new jobs for Philadelphians. The building, which was due to be completed in 2018, will now open its doors to the public in the spring of this year.

"We are so proud of this project and look forward to celebrating the opening of these world-class hotels as well as the economic benefits it will bring to the Philadelphia region," said Brook Lenfest, Owner of Chestlen. "This is a premier destination and a unique property that brings two national hotel brands to the City for the first time."

The hotel property is located at 1439-1441 Chestnut Street, which is in the district of Philadelphia City Council President Darrell L. Clarke, who said: "This project is important for Philadelphia's economic recovery from this pandemic. The jobs that it will bring this year are sorely needed for our vital hospitality industry."

More details on the planned opening will be announced soon.

Chestlen also stated that it has filed a lawsuit against Tutor Perini following months of private discussions to settle the commercial issues arising from construction delays.

"Unfortunately, we had no choice but to bring this dispute to the courts," said Eric Hollreiser, a spokesperson for the developer. "Chestlen has lived up to all of its obligations to Tutor Perini and has suffered a staggering 890+ days of delays. By the end of this month, Tutor Perini will be two and a half years late on delivering this project to Chestlen."

The complaint was filed on January 11 with Court of Common Pleas of Philadelphia (Case ID: 210100645) and details the construction issues that Chestlen says led to years-long delays and are the responsibility of Tutor Perini. The complaint also alleges that Tutor Perini withheld payments to subcontractors and withheld key information from Chestlen.

By filing the complaint, Chestlen seeks to "hold Tutor Perini accountable for failing to uphold its contractual obligations to Chestlen, missing important deadlines and attempting to cover up costly mistakes," said Hollreiser. "We are confident the Court will find that Tutor Perini must fulfill its obligations to its contractors and Chestlen."

Chestlen Development, a real estate investment and development firm founded by Brook Lenfest and based in Conshohocken, Pa., is being represented by Blank Rome in Philadelphia and Glaser Weil in Los Angeles.

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