SIAP: Penn State board of trustees OKs sale, ground lease of Penn Stater hotel, Nittany Lion Inn
- Thread starter StamfordBridgeVikingatLeftOffensiveTackle
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So they are selling the hotels but leasing the land. Does this mean that the Nittany Lion Inn could be demolished and a new super high rise hotel be built?
Why does this benefit PSU? Is there an agreement in place to have students in the PSU Hospitality program train in these hotels?
This is the same group that owns the Fraser Center(the Hyatt, first high rise in State College) and they just rehabbed the building at Pugh and Beaver.
Their main guy is a PSU Alumni: https://directory.alumni.psu.edu/s/1218/16/interior.aspx?pgid=7878
Why does this benefit PSU? Is there an agreement in place to have students in the PSU Hospitality program train in these hotels?
This is the same group that owns the Fraser Center(the Hyatt, first high rise in State College) and they just rehabbed the building at Pugh and Beaver.
Their main guy is a PSU Alumni: https://directory.alumni.psu.edu/s/1218/16/interior.aspx?pgid=7878
It appears that PSU is cutting costs. That doesn’t sound right.
Would seem PSU steps back from having to make any investment in the property this way (wondering if we committed to delivering a clean lot, though), but will still have the land so they can negotiate with the group if some huge-value replacement use arises.
Because I do not officially "start" until July 1 - I was not privy to the official communications (and certainly not part of the approval process) on these items.
I'd like to think as part of the lease that certain building restrictions would be negotiated if the NLI is razed. But with the PSU admin, it's anyone's guess.
I wonder who on our BOT has an affiliation with the Scholar Hotel Group?
Yeah, I'm wondering how many bids, who was bidding, was it an open bidding process, did groups refuse to submit a bid, were groups allowed to resubmit additional higher bids, if the winning bid was the last or close to last submitted, how close were the bids in value, how much did the winning bid win by, what were the contractual terms of all the bids, etc.
Smart Move. Get paid. Keep the landmark. Get out of the day to day operations.
One of the primary reasons this is happening is that the previous director responsible for both locations kicked the maintenance can down the road year after year after year that the total of deferred maintenance that is badly needed at both locations is in the tens of millions. Penn State cannot afford to do so and this allows that deferred maintenance to happen without Penn State having to foot the bill. Not only reason. And to think that guy is getting a nice monthly retirement check from Penn State, when he really failed in one of the key aspects of his job. Not to mention he was an arrogant SOB.
The Nittany Lion Inn is dilapidated. It's sad.
“America has rolled by like an army of steamrollers.
It has been erased like a blackboard, rebuilt and erased again.” J.E.Jones, Field of Dreams
Maybe the new owner will burn it down to the ground.
I've got an idea. How about renovate the thing with the "museum" money and hang the "excess" art on the newly renovated walls throughout the hotel. They'll still have the problem of parking all the school buses that come to visit but I'm sure a few dozen associate directors of parking could figure that out. You have to admit, the roundabout entrance for all the buses would be well received as they would keep the traffic moving.
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It's not a bid/open bid process. Typically an entity trying to dispose of properties of this type engages a financial advisor who develops alternative structures and gauges interest. It's not widely advertised, but word gets around.
I thnk this makes sense. The university needs to focus on core competencies and mission. Owning and running hotels probably isn't one of those core competencies and missions. Education, research and economic development are what we should be focusing on.
I'm sure there will be plenty of opportunity for hotel/hospitality management students to get lots of good hands on experience with the new owners.
Maybe PSU will look at privatizing dorms and dining facilities in the future.
How about if we sell Beaver Stadium and let a professional organization run the security, ticketing and concession stands?
So where does athletics fit into the core competencies? To the extent one can draw a direct correlation between athletics and contributions, it probably aligns.
I'm sure there will be plenty of opportunity for hotel/hospitality management students to get lots of good hands on experience with the new owners.
Maybe PSU will look at privatizing dorms and dining facilities in the future.
How about if we sell Beaver Stadium and let a professional organization run the security, ticketing and concession stands?
So where does athletics fit into the core competencies? To the extent one can draw a direct correlation between athletics and contributions, it probably aligns.
“While specific plans between Penn State and Scholar Hotel Group are being defined, the University’s goal is to support students, faculty, staff, visitors and community members,” said Sara Thorndike, senior vice president for Finance and Business and treasurer. “Though still in the preliminary stages of this process, the University is focused on supporting employees who work at the Penn Stater. There will be a variety of employment opportunities for current hotel employees with the new operator or in other areas at Penn State.”
The article goes on to say, “The Penn Stater will remain open, and the University anticipates The Nittany Lion Inn will remain closed until 2024.” I guess that’s why The Nittany Lion Inn isn’t mentioned above. Was it closed due to COVID? Why is it still closed?
Also stated in the article:
“The selection of the Scholar Hotel Group, which was founded and is owned by a proud Penn State alumnus, for this critical partnership was done with the utmost diligence following thorough RFQ and RFP processes and with the University community at top of mind, according to Thorndike.“
Yes. When everything closed the NLI did as well and never reopened. They housed some students in there. First it was going to be used to quarantine/isolate students but I think that plan changed and they housed non-Vid infected students in there thru Covid. It is currently not being used for anything and is closed. Although, I did see a meeting occurring this past semester in that room with all the windows you can see into from Park Ave just before you get to Atherton. Rode my bike by there this past week and it looks like it is not being used for anything now. They are maintaining the grounds but not the building as paint is peeling from lots of places.
“While specific plans between Penn State and Scholar Hotel Group are being defined, the University’s goal is to support students, faculty, staff, visitors and community members,” said Sara Thorndike, senior vice president for Finance and Business and treasurer. “Though still in the preliminary stages of this process, the University is focused on supporting employees who work at the Penn Stater. There will be a variety of employment opportunities for current hotel employees with the new operator or in other areas at Penn State.”
The article goes on to say, “The Penn Stater will remain open, and the University anticipates The Nittany Lion Inn will remain closed until 2024.” I guess that’s why The Nittany Lion Inn isn’t mentioned above. Was it closed due to COVID? Why is it still closed?
Also stated in the article:
“The selection of the Scholar Hotel Group, which was founded and is owned by a proud Penn State alumnus, for this critical partnership was done with the utmost diligence following thorough RFQ and RFP processes and with the University community at top of mind, according to Thorndike.“
Grease not Vaseline, different substance....Mine.
The NLI was a dorm during the last two academic years.
“While specific plans between Penn State and Scholar Hotel Group are being defined, the University’s goal is to support students, faculty, staff, visitors and community members,” said Sara Thorndike, senior vice president for Finance and Business and treasurer. “Though still in the preliminary stages of this process, the University is focused on supporting employees who work at the Penn Stater. There will be a variety of employment opportunities for current hotel employees with the new operator or in other areas at Penn State.”
The article goes on to say, “The Penn Stater will remain open, and the University anticipates The Nittany Lion Inn will remain closed until 2024.” I guess that’s why The Nittany Lion Inn isn’t mentioned above. Was it closed due to COVID? Why is it still closed?
Also stated in the article:
“The selection of the Scholar Hotel Group, which was founded and is owned by a proud Penn State alumnus, for this critical partnership was done with the utmost diligence following thorough RFQ and RFP processes and with the University community at top of mind, according to Thorndike.“
How Penn State's Nittany Lion Inn made switch from hotel to residence hall
Penn State’s historic Nittany Lion Inn, which has housed alumni, visitors and students alike since 1931, will continue to serve as a residence hall for a second academic year, disappointing
There has been no maintenance on it for at least the last two years, maybe longer. It's in bad shape. They will do a major renovation of the NLI.
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Thanks. I remember the plan to use it to isolate students with COVID, but I had no idea it was closed.
I wonder which students got the rooms with the jacuzzi tubs??The NLI was a dorm during the last two academic years.
How Penn State's Nittany Lion Inn made switch from hotel to residence hall
Penn State’s historic Nittany Lion Inn, which has housed alumni, visitors and students alike since 1931, will continue to serve as a residence hall for a second academic year, disappointingwww.collegian.psu.edu
There has been no maintenance on it for at least the last two years, maybe longer. It's in bad shape. They will do a major renovation of the NLI.
Prior to moving to State College, we stayed at the Nittany Lion Inn many many times and always enjoyed our stay. It is a very unique hotel with a lot of history in a great location. I ran into JoePa there one Sunday morning when I was carrying our bags out to the car. He held the door open for me and let me thru before he entered. This was the day after we came back and beat Indiana when they had Antwann Randle El. I hope the new group keeps it unique.
Fortunately / Unfortunately -- or not, depending on your sense of tradition or amount of expense to fix both -- this was an inside job.
The University has had problems with occupancy rates for the Penn Stater hotel -- no one wanted to 'stay out there'. And problems with the maintenance, kitchen and number of students who would actually work at the Nittany Lion. Inside information to the Board, formed an opinion that both hotels could be sold, and Penn State could save and make money in the long run.
This 'idea' was not known to many, while some alumni opposed the plan for the namesake and tradition, some of the Trustees wanted a Marriott to come in and revitalize the properties. Several southern schools have maintained their iconic hotels and utilized them as prized home game locations.
The Trustee that I know (friend) referred me to Thorndike, and after a conversation, a cold email message from her said the hotels were under evaluation. Nothing else since in terms of an evaluation update (never promised) or an RFQ and Bid sequencing. Thorndike- a recent hire, and her evaluation company have known each other from their Carolina days. To me, it is obvious that a local company sitting in her office would be chosen, over the Trustee sentiment for a well recognized national hotel company.
Take it for what it is worth -- no one wants the Penn Stater, and the Nittany Lion will cost big bucks to redecorate.
CEO Brandeis is a PSU Smeal grad. Do you recognize anyone else as having PSU connections that would explain their relation with PSU? Perhaps they overpaid by offering a deal even PSU couldn't refuse.
I smell a long-needed tear-down and rebuild. I hope they have the wisdom to not go over 6 floors, keep the architecture classic, paint the brick white and install true-hinged navy blue shutters.
Meet the Team – Scholar Hotel Group
scholarhotels.com
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