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Monty Bennett’s Ashford Hospitality Trust has successfully offloaded one of a dozen hotels it has been seeking to sell as it nears maturity in financing.
New York-based Cetares Management and California-based Belcourt Capital Partners have acquired the Hilton Boston Back Bay hotel for $171 million, according to the Boston Globe. The 25-story, 390-room hotel in the Back Bay neighborhood is Cetares’ second hotel acquisition in Massachusetts.
Nolan Hecht, the company’s director of real estate, told the Globe that the property has attracted interest from other potential buyers to convert it into university housing, and Northeastern is building a nearby 428-room Sheraton hotel Plan to build university dormitories.
The new owner of the Hilton hotel, one of only three of the brand’s properties in Boston, expects to invest $25 million to $30 million to update the hotel, renovating guest rooms, lobbies and public areas. The hotel has a 209-space parking lot and restaurant/bar, which is expected to remain open during renovations.
Ashford acquired the property in 2011 for $1.3 billion as part of a 28-hotel portfolio. This year, however, Ashford sold more than a dozen hotels, including Hilton properties, as part of a plan to raise money to repay financing due in January 2026 and to deleverage its balance sheet; Hilton’s sale $68 million in proceeds will be earmarked for these purposes.
Ashford has been actively selling properties since it planned to turn 19 of its properties over to lenders a few months ago.
The Back Bay submarket is one of the most popular submarkets in the area for hotel owners. In February, it ranked third among Boston neighborhoods in revenue per available room, behind North/West End and Seaport.
— Holden Walter Warner
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