Returning Allure of Boston Hotel Market Leads to $143.5M Radisson Deal
- Oct 08, 2010
October 8, 2010
By Barbra Murray Contributing Editor
Investors have been rather keen on the Boston hotel market of late, and the trend continues with Northwood Investors L.L.C.’s acquisition of the 358-room Radisson Hotel Boston from John Philopoulos Associates Trust in a $143.5 million transaction.
Carrying the address of 200 Stuart Street, the Radisson Boston boasts a downtown location bordering trendy Back Bay, the Financial District and the Theater District, a prime spot for a full-service hotel to cater to business and leisure travelers. The 40-year-old property, which features two restaurants, 20,000 square feet of meeting space and two auditoriums accounting for a total of 25,000 square feet, also comes with a connected six-level parking facility offering 743 spaces accessible around the clock.
Northwood has not publicly revealed the specifics of the acquisition financing, however, RBS Citizens N.A. did provide the privately held real estate investment advisor with a mortgage loan of $39.7 million.
CB Richard Ellis Hotels Group marketed the property on behalf of JPA Trust, a third-generation family-owned and operated real estate firm, and found no lack of suitors. Kevin Mallory, senior managing director and practice leader for CBRE Hotels in the Americas, noted that this is the second major transaction handled by CBRE Hotels in Boston this year, adding that interest in the Boston market is strong.
The hospitality real estate services firm advised Fairmont Hotels & Resorts on the $98.5 million sale of the Fairmont Copley Plaza to FelCor Lodging Trust in August. It was just one a few notable Boston hotel transactions that materialized over the last several months. Chesapeake Lodging Trust grabbed the 498-room Hyatt Regency Boston and the 430-room Boston Marriott Newton in Newton, Massachusetts, for $112 million and 77.2 million, respectively.