"This property fits our strategic objectives and provides us with access in a top five gateway market that cert shows signs of good growth," Sean Dell'Orto, Highland's senior director of corporate finance, tells GlobeSt.com. Dell'Orto says Highland made a bid on the 40 Dalton St. property because of its strategic location next to the Hynes Convention Center and the city's nearby historical amenities.
He says the purchase, which comes out to approximately $286,000 per room, complements Highland's acquisition last year of the Tremont Boston Hotel, a 322-room property located in the city's theater district. Highland has since re-branded that hotel with the Marriott Courtyard flag.
The McLean, VA-based REIT has no plans to change the brand and says Hilton will continue to manage the property under a long-term agreement. The hotel, which was recently renovated by Hilton, will undergo some improvements to its mechanical operations under its new owner, Dell'Orto says. "We'll be doing some minor cosmetic work but the hotel was recently upgraded by Hilton and is in great shape."
The addition of the Back Bay Hilton brings the number of properties owned by Highland to 21 hotels totaling 6,270 rooms in 11 states and Mexico. Hilton Corp. did not return calls from GlobeSt.com seeking comment. Both Hilton and Marriott have divested of several hotels in recent months while keeping its management. Earlier this month, Equity Inns closed on its $15.2-million acquisition of two Hilton-branded hotels in Peabody.
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