Upcoming Boston Hotel Lands $75M in Financing
- Nov 25, 2019
The Canopy by Hilton Boston Downtown received $75 million in construction financing from Citizens Bank. The developers, a partnership between Olshan Properties, CV Properties and Harbinger Development, began construction on the project earlier this month, with an expected completion by mid-2021.
Located at 111 North St., the 212-key Canopy hotel will rise on a 1.2-acre site situated in a central location in Boston’s downtown. The six-story hotel will offer guests a fitness center, a cafe/bar on its second floor, 1,600 square feet of meeting space and 12,711 square feet of ground-floor restaurant and retail space. The ground-floor portion will be able to accommodate three tenants, one of which will offer an outdoor terrace on Hanover Street. The Canopy will also provide easy access to Boston’s historic sites and attractions, including Faneuil Hall, The Paul Revere House and the New England Aquarium.
JLL’s Anthony Cutone, managing director, and Matt Enright, director, led the Capital Markets debt placement team that represented the developers. The deal was secured by HFF before they were acquired by JLL on July 1.
“There was good interest in the financing opportunity from a multitude of lenders,” Enright told Commercial Property Executive. “And investor demand for Boston hotels has been quite strong given the diverse demand base in this market.”
In March, Enright was also part of the HFF team that brokered the sale of three Hilton hotels in Boston totaling 433 keys.
Hotel changes on the horizon
While the hotel market is keeping up with demand in Boston, JLL’s hotel outlook report predicts that the U.S. will overall see a decline in hotel supply in 2020, due to high construction costs. The report also noted that 2019 will be the last peak year of new hotel development, with volume stabilizing shortly after.
Part of the trend also involves how hotels are being designed nowadays, according to the report. New properties are emphasizing unique design features that match the surrounding neighborhood and that also include smaller rooms, lobbies with bars and restaurants, or more outdoor space.