Univ. Health System takes control of Penn Tower Hotel complex

Penn Tower Hotel will operate until end of the year, but should it cease operation, no plans are in the works The University Health System has taken over the Penn Tower Hotel complex, a popular spot for prospective students and visiting parents. The University announced the transfer of power in May, when Executive Vice President John Fry called the move part of a "strategic plan to lead Penn into the 21st Century." He said the transfer is another part of the University's Agenda for Excellence, which spurred such recent changes as the decision to build a Barnes and Noble superstore to replace The Book Store. The Penn Tower complex -- which includes the hotel, the Penn Tower parking garage, Student Health Services and Blockley Hall -- already houses some components of the Health System, such as a number of physician and Clinical Practices of the University of Pennsylvania offices. Blockley Hall houses a large number of medical school classrooms and offices. At the time of the announcement, Fry said the transfer would provide the Health System with the central space and flexibility to "meet the changing need and requirements of health care service delivery and research." But he added that the Health System intended to continue normal operation of the hotel and garage "for the present time." "During the remainder of the calendar year, the Health System will study other potential uses of these properties to determine whether alternative uses are feasible and desirable," Fry said. The transfer will also allow the University to access funds which were previously invested in or committed to the hotel, garage and Blockley Hall. University spokesperson Barbara Beck said the transfer of power "makes sense," in terms of internal structure. She said the University does not plan to build a new structure to replace the Penn Tower Hotel if it ceases operation in the future. In July, Associate Vice President of Hospital Facilities Barry Hilts confirmed that the complex would continue on a normal operation schedule until the end of the year. "In an early meeting with the employees and John Fry, we agreed to continue with the existing agreement for the time being," he explained. Hilts said there are no definite plans for utilization of the space -- yet. He explained that the health system is organizing a study which will draw input from all "stakeholders" in the future of the complex. The study will take suggestions from many areas and determine which are the most cost and space efficient. "We have a steering committee which is a pretty good cross-sectional mix of those [departments] involved," Hilts said. According to Director of Facilities Planning Peter Pompetti, suggestions have ranged from what type of restaurants the complex will have to whether a pharmacy will be installed. "You name it, people have thrown it out," he said. Suggestions have also included examining the amount of retail hotel space needed in the complex. "We're looking at the size of the hotel compliment the health system will need," Hilts said. "Families of patients in [the Hospital of the University of Pennsylvania and the Children's Hospital of Philadelphia] do stay in the complex now. They make up a good chunk of the business." But he said the health system may not need the amount of rooms that currently exist. "Right now it's a mixed-up building, with everyone competing for space," Pompetti said. "We're trying to engineer the best mix of [spatial] uses." Hilts said all of the planning is scheduled to be finalized before the end of the calendar year.

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