Hersha Hospitality Trust has agreed to acquire the Bulfinch Hotel in downtown Boston for $18.2 million.
Thomas Grillo
Real Estate Editor – Boston Business Journal
Hersha Hospitality Trust
(NYSE: HT) has agreed to acquire the Bulfinch Hotel in downtown Boston’s West End neighborhood for $18.2 million.
The company said it plans to invest $2.5 million in the 80-unit hotel to upgrade guest rooms, improve the food and beverage service and fitness and business amenities. CEO Jay Shah said he is pleased to capitalize on the opportunity to increase their ownership in one of the “highest barrier to entry lodging markets in the country” at a price “well below” replacement cost. The closing is expected late in the second quarter.
Hersha’s purchase comes amid good news for Boston hotels. Greater Boston’s hotels continued to achieve strong results in March, according to a survey by PKF Consulting USA
. The 94 hotel operators in the PKF Trends sample for the Boston area achieved an average 71.7 percent occupancy at a $162.60 average daily rate (ADR) with a resulting $116.61 revenue per available room (RevPAR). These performance levels represented an occupancy gain of 3.4 percent, a 10.7 percent increase in ADR, and an overall 14.4 percent rise in RevPAR for March 2012, compared to March 2011, the study found.
The Bulfinch Hotel
is located within walking distance of Beacon Hill and the North End. It is adjacent to the O’Neill Federal Building and TD Banknorth Garden, North Station Commuter Rail, and the Massachusetts General Hospital campus.
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