Pittsburgh

UPMC Snags Long‑Stalled Penn Ave Lot, Silences Hotel Plan Near Children’s

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Published on June 05, 2026
UPMC Snags Long‑Stalled Penn Ave Lot, Silences Hotel Plan Near Children’sSource: b2468135, CC BY-SA 3.0, via Wikimedia Commons

UPMC has scooped up a long‑stalled development parcel on Penn Avenue, shelling out about $3.94 million for land catty‑corner to its Children’s Hospital complex in the Friendship/Lawrenceville area. The buy pulls yet another stretch of Penn Avenue into the health system’s orbit and effectively shuts the door on a hotel plan that lingered for nearly a decade. UPMC has not publicly detailed what it wants to do with the site.

As reported by WPXI, the two‑parcel site was sold by KN Hospitality LLC. The outlet noted that KN secured zoning approval back in 2017 for a 115‑room Hampton Inn, but the project never left the drawing board. Michael Kratsas, a consultant for KN Hospitality, summed up his frustration with the stalled effort in two words: "It's ridiculous." The reported sale price was $3.94 million.

Hotel Plan Dies After 2017 Approval

The 2017 zoning approval called for a 115‑room Hampton Inn on the cleared Penn Avenue lots, but no construction ever started, and the parcels sat idle until the sale to UPMC finally closed. That transfer effectively ends the dormant hotel proposal and hands UPMC control of the land for whatever use it chooses next.

What UPMC's Buy Could Mean

UPMC has a track record of buying up nearby parcels and reshaping the streetscapes around its major campuses, a pattern that has been chronicled in local coverage over the years. The Pittsburgh Post‑Gazette has detailed how those acquisitions have changed blocks surrounding UPMC facilities in other neighborhoods.

What's Next For The Lot

The site sits catty‑corner across Friendship Avenue from UPMC Children’s Hospital at 4401 Penn Ave, according to UPMC, putting it just a short walk from the hospital’s main entrance. UPMC has not rolled out any public plans for the parcel. Any major redevelopment would need city approvals and public filings, which should give neighbors and other stakeholders chances to weigh in if and when a project is proposed.