BOSTON—Starwood Hotels & Resorts Worldwide Inc. reports it has commenced construction on its dual branded hotel development—Aloft Boston Waterfront and Element Boston Waterfront—that will add 510 rooms to the market when it opens in 2016.

The $158-million project will feature the 330-room Aloft Boston Waterfront and 180-room Element Boston Waterfront located on D Street, directly across the street from the Boston Convention & Exhibition Center. The hotels will be owned and developed by a partnership between majority equity partner Ares Management-controlled funds and CV Properties on a 5.2 acre-parcel of land leased from the Massachusetts Convention Center Authority.

The two hotels will be operated by Stamford, CT-based hotelier Starwood Hotels & Resorts under the Aloft and Element brand flags. A total of $97 million of financing will be provided by RBS Citizens Financial Group and Santander Bank.

“We look forward to opening this dual-branded Aloft and Element hotel complex as part of the on-going redevelopment of the South Boston Waterfront, the city's fast-growing business and innovation district,” says Brian McGuinness, senior vice president of specialty select brands for Starwood. “Recognized as an industry leader in the eco-space, Element promotes a life in balance with its emphasis on wellness and sustainability, while Aloft resonates with the next generation of travelers who appreciate its distinctive urban design, intuitive technologies and live music scene at the W XYZ Bar.”

Boston Mayor Martin Walsh adds, “The addition of the Element and Aloft Boston Waterfront hotels on D Street will provide needed support to the BCEC and the entire South Boston Waterfront for its many business and leisure travellers. I look forward to celebrating the opening of these two new and modern properties, and congratulate the MCCA, CV Properties and Starwood on a successful collaboration.”