$150M Refi for Prime Boston Hotel
- Jun 27, 2016
Boston—Annapolis, Md.-based Chesapeake Lodging Trust recently closed on a $150 million fixed-rate mortgage for the 502-key Hyatt Regency Boston. Provided by MetLife, the 10-year loan carries a yearly fixed interest rate of 4.25 percent, with principal and interest payments based on a 30-year amortization.
“The appreciation in and shareholder value created by the Hyatt Regency Boston, Chesapeake’s first acquisition and a key asset in our portfolio, allowed us to generate significantly greater proceeds than our previous $95 million mortgage loan, which was prepaid earlier this year,” Douglas Vicari, Chesapeake’s EVP & CFO, said in prepared remarks.
The Maryland REIT snapped up the downtown asset in 2010 from Hyatt Hotels Corp., for a price tag of $112 million. The transaction closed shortly after Hyatt had acquired the property from Host Hotels & Resorts, in February 2009, for approximately $113 million.
The Hyatt Regency Boston is located at 1 Ave. de Lafayette, right in the heart of downtown. Less than five miles away from Logan Airport, the property is situated within walking distance from Downtown Crossing and Park Street Stations for the Orange, Red and Green lines. Within a 15-minute walk from Boston Common, Post Office Square, South Station, Faneuil Hall, all Financial District locations and the Harbor Walk, the hotel is also close to a plethora of retail and dining options.
The 502-key property, which is connected to downtown Boston’s Macy’s, offers 19 suites, 30,000 square feet of flexible function space and a 1,000-spot parking garage. Amenities also include a 24-hour business center, 21 function rooms, 24-hour gym, massage therapy and spa services, 52-foot indoor swimming pool, sun terrace, contemporary restaurant and lounge bar.
Images courtesy of hyatt.com