Winners on the ice, the Penguins now will try their luck on land.

The franchise skated into real estate development yesterday, teaming with Canonsburg-based Horizon Properties Group and Choice Hotels International to break ground on a 142-room Cambria Suites Hotel next to the new arena.

Penguins CEO Ken Sawyer described the project as the "first step" in the team's ambitious plan to transform 28 acres of land across the street into a mixed office, residential and retail development.

"It really shows that things are going to happen in this part of town," he said.

The Penguins won the rights to develop the real estate, which includes Mellon Arena and its lower and upper parking lots, as part of the 2007 deal to build the Consol Energy Center and stay in Pittsburgh.

First, though, it has set its sights on the one-acre parcel next to the new arena that will be the home of the seven-story Cambria Suites Hotel.

With yesterday's groundbreaking, officials hope to have the hotel finished by next fall before the opening of the National Hockey League season.

The Consol Energy Center is scheduled for completion about Aug. 1, with opening events probably "by September," Mr. Sawyer said. "It's on schedule. We continue to be delighted with the progress," he said.

Outside of a possible mix of office, residential and retail development, no specific plans have been devised yet for the 28 acres available across the street, Mr. Sawyer said. The Penguins have yet to choose a developer to assist them in the venture.

Mr. Sawyer said the team first wants to concentrate on getting the Consol Energy Center and the hotel open, "then the focus moves right over to the development of the other side."

Part of the plan for the 28-acre site is to demolish Mellon Arena and restore the street grid linking the Hill District and Downtown, one destroyed decades ago with the construction of the Igloo.

Pittsburgh Mayor Luke Ravenstahl said the hotel project marked the "beginning of the rebuilding." The city, he added, will be looking for even "bigger and better things" once development moves to the 28 acres. Hill District leaders also want a voice in what takes place.

Under their agreement with the city, county and state, the Penguins will have a 10-year option on the land, starting one year after the Consol Energy Center is completed.

The team must develop at least 10 percent of the land each year, or face the risk of losing all or a portion of the property. It is required to pay fair market value for each parcel, but also has access to $15 million in credits it can apply against purchases. The Penguins already have used credits to purchase the hotel site from the city-county Sports & Exhibition Authority for $475,000.

The credits were awarded as part of the arena deal to compensate the team for parking revenue that will be lost as the Mellon Arena site is redeveloped.

The Cambria Suites Hotel, part of the Choice Hotels chain, will consist entirely of suites. Among its amenities, it will offer guests two flat-screen LCD TVs, a CD/DVD player, and MP3 jacks in each room.

There also are plans for a 10,000-square-foot restaurant on the lower level directly opposite the Consol Energy Center and a state-of-the-art fitness center with an indoor pool and spa.

The average daily rate will run from $150 to $180.

It is the second Cambria Suites Hotel that Horizon Properties is building in the region. The other is being built near The Meadows Racetrack and Casino in Washington County.

Looking for more from the Post-Gazette? Join PG+, our members-only web site. You'll get exclusive sports content, opinion, financial information, discounts from retailers and restaurants, and more. Our introduction to PG+ gives you all the details.