LOEWS PHILADELPHIA HOTEL: THE HISTORY OF OUR BUILDING

Established in 1816, the Philadelphia Savings Fund Society (PSFS) was the first savings bank in the United States. From the beginning, it catered to low and moderate-income depositors with the explicit purpose of encouraging them to save and better their futures. By the end of the 1800s, the bank was popular among recent immigrants. It was known as the “immigrants bank,” employing tellers who spoke five languages.

During the 1920s, the Savings Fund was beginning to outgrow its second headquarters, an Italianate-style building constructed in 1869 and located on Washington Square at Seventh and Walnut Streets. The increasing volume of banking business and growth in population made it necessary to open four branch offices in Philadelphia and precipitated the need for a new headquarters.

In 1929, the bank commissioned the construction of a 36-story, 491-foot skyscraper that would be capable of producing income from rental office space as well as providing for the banking activities of the Society. James M. Wilcox, president of PSFS from 1924 to 1934 and chairman of the building committee, took an enthusiastic and active part in the design process, particularly with the tower. In the midst of the Great Depression, the building was built and equipped at an estimated cost of $8 million and was opened in stages between 1932 and 1933. The $8 million cost was an overwhelming amount during the depression. Today, the building’s materials and features would be near impossible to afford.

The PSFS building is considered one of the most significant buildings of the 20th century. The building revolutionized urban landscape. The structure was the world’s second skyscraper to have central air-conditioning. The public referred to it has “weather in a box.” The public was convinced that central air conditioning was harmful to their health, so for one week, the engineer spent 24 hours a day in the building to prove it was not harmful.

The architects, George Howe and William Lescaze, made certain every detail of the building was perfect. From the marble and granite from 32 different countries to the rare woods used throughout the hotel. Cartier designed clocks were on each floor making a dramatic statement.

During the mid-1950s, PSFS blanketed Philadelphia’s growing suburbs with branches and established itself as the city’s most venerable savings bank. In 1969 the local AIA voted it the most important building in the city in the last hundred years. By 1979 it was put on the National Register of Historic Places.

In the late 1970s and early 1980s, its fortune began to change as a nationwide economic downturn and deregulation of the banking industry led to a banking crisis.

In the midst of financial losses in the early 1980s, PSFS expanded its operation by acquiring ailing banks in Philadelphia and Florida and expanding its mortgage loan business. In 1985, the name Meritor Financial Group was adopted for its growing empire of financial service companies with PSFS remaining the flagship of the parent company.

Under heavy pressure from the Federal Deposit Insurance Company (FDIC), Meritor agreed in 1989 to sell fifty-four suburban branches to the Mellon Bank Corporation for $335 million. Mellon also purchased the right to use “PSFS” on its area branches. Meritor’s remaining branches continued under the “Philadelphia Savings Fund Society”.

On December 11, 1992, Meritor Savings Bank closed its doors for business. The FDIC assumed all remaining assets, selling off twenty-seven branches and all of the bank’s deposits to Mellon Bank. The PSFS building became just another of the thousands of real estate properties in the hands of the FDIC.

In the Year 2000, the building was renovated and reopened as The Loews Philadelphia Hotel. With the original PSFS sign still illuminated atop the 33rd floor, the building continues to be a historic landmark and recognizable symbol of Philadelphia.

The new hotel was designed by Daroff Design and the architectural firm of Bower Lewis Thrower. The new hotel takes full advantage of the historical features of the building. The once three story banking room is now a beautiful banquet space that has preserved the historical features, such as the banks safe, Cartier clocks, and original marble. The famous rooftop boardroom has been converted into a brilliant setting for meetings and functions. The Loews Philadelphia hotel contains 581 luxury rooms situated in one of the most significant and historical buildings in the country.

The famous PSFS sign

Having the PSFS sign on the roof of the building was the first time any advertisement was integrated into a building’s design. At the time the sign was put up, such acronyms were unheard of. Throughout the great depression the sign remained lit 24 hours a day. This reassured its customers that their money was safe and secure during hard times.

Years later the decision was made to only have the sign lit at night. However, in 1990 the bank was placed into receivership and the federal government made the decision to turn off the lights permanently. This decision outraged the public, which caused the sign to be turned back on in a matter of days. To this day the sign still illuminates the Philadelphia skyline.

The 33rd Floor

The 33rd floor of the PSFS building was once set aside for the highest echelons of business. The top floor soon established itself as one of the most powerful business settings in the country. The floor was so exclusive and powerful that many of the PSFS top executives never even stepped foot upon the top level.

According to urban myth, the elevator operators would get out of the car on the 32nd floor, to have the passengers go to the 33rd floor alone. As the elevator door closed the operator would yell “you’re on your way gentleman!”

The historical features of the prestigious floor have been well maintained as part of the hotel. Today the original furniture is still in place as well as the unique style of the building remains obvious to this day.