It is not uncommon for development projects to stall after receiving approvals. There are so many factors that come into play after getting the go-ahead. Progress isn’t always straightforward when undertaking such a large project. This appears to be the case with the Parx Hotel project in Bensalem, Pennsylvania.
The Bensalem Town Council unanimously approved the project in March 2023. Groundbreaking was set for late 2023, and the plans were to open the hotel in 2025. Since then, the project has not advanced as expected. This could be due to many different reasons.
Does Parx still intend to build a hotel?
Parx Casino is the number one casino in Pennsylvania, and the idea that it wanted to add a hotel to its sprawling property in Bensalem was not surprising. Many large casino resorts have hotels. Since Parx Casino opened in 2006, it has invested millions in upgrades and enhancements. The idea of a hotel on the property was exciting for many.
However, there appears to have been no progress since Parx removed one of the restaurants at the casino to make way for the hotel. This is possibly due to the fact that Parx is involved with many other projects. It has been busy with the launch of new U.S. online casinos under its new digital brand (betPARX). Online gambling has become legal in many states, including Pennsylvania. The success of legalized gambling in Pennsylvania is generating significant tax revenue for the state.
Plans for the hotel
Parx has been planning the hotel for over ten years and has not indicated that it won’t proceed with it. In March 2023, plans for the hotel were presented at the Bensalem Township Council. The 13-story high building will include 300 rooms and a walkway that connects the hotel with Parx Casino. On the hotel’s top floor will be a rooftop restaurant with a view of the Philadelphia skyline. A show kitchen will feature special presentations where chefs demonstrate their culinary skills. A 14,000-square-foot banquet hall that seats 800 people will be suitable for weddings, conferences, etc. All of this could stimulate the local economy.
The Mayor of Bensalem comments
Bensalem Mayor Joseph DiGirolamo doesn’t know why Parx hasn’t advanced with its luxury hotel. He said his guess is that it’s due to the economic situation in the U.S. and that financing and inflation could play a role. The U.S. economy relies on the US infra sector, and systems built decades ago are struggling to keep pace.
The mayor said Parx didn’t express that it wouldn’t build the hotel. He has a good relationship with the company but has not had a specific reason for why the project hasn’t gone ahead yet.
Possible reasons for the delay
There are many entrepreneurial challenges that come with projects like building large hotels. A company involved in such a project needs to be adaptable to any changes in the economy and make good decisions. The reasons for the delay could be due to circumstances beyond the control of the company. Instability in the hospitality construction market can have far-reaching consequences on developers. Inflated prices for construction materials, supply-chain disruptions, and labor shortages are just some factors that could be playing a part in delaying construction.