The buyer, which also owns the Marriott Residence Inn in Framingham and the Four Points Sheraton Hotel at Logan Airport, plans to manage the property under its subsidiary, Hersha Hospitality Management LP. "It's a very good fit with our acquisition profile," Jay H. Shah, president and chief operating officer for Hersha, tells GlobeSt.com. "The asset has been performing quite well and we believe there is some ramp up still left in the hotel."
Shah says the REIT, which also owns hotels in Washington, DC, looks for properties in stabilized central business districts in primary and secondary markets that have an upside potential. The Marriott Courtyard Boston/Brookline fit those criteria perfectly, he says. "There has been great growth in New York and Washington and we noticed that Boston, when it comes to recovery, is always lagging behind those two cities so we think the timing is good in the market." He says the Brookline submarket with its strong entry barriers made the asset even more appealing.
Opened in 2003, the hotel is located in the Coolidge Corner area near many of the region's hospitals, research institutions, universities and healthcare companies. Among its amenities are a 140-space underground parking lot, an outdoor public garden, indoor swimming pool and a bar and restaurant.
"The fact that the Courtyard already provides substantial cash flow and will be immediately accretive even though the hotel is still ramping up and the Boston market is only in the early stages of recovery is a very encouraging combination of factors," Shah notes. He says Hersha will continue to seek out other hotel opportunities in the Boston market but currently has no plans to add additional hotels to its existing portfolio.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
