South Boston Will See More Hotels

BOSTON-The first phase of a $2-billion expansion of the Boston Convention & Exhibition Center cleared a regulatory hurdle late last week as the Boston Redevelopment Authority approved construction of two mid-priced hotels adjacent to the BCEC. A partnership of Commonwealth Ventures, Starwood Hotels and Resorts Worldwide Inc. and Jones Lang LaSalle will develop a total of 510 keys at a cost estimated at $190 million.

Construction on the 330-key Aloft and 180-key Element is slated to begin by year's end, with the hotels scheduled to open in 2015. The two South Boston hotels are geared toward different customers: the Aloft is intended to serve business travelers with short stays in their travel plans, while the Element will offer an extended-stay format for guests planning a three-to-five day visit to Boston, according to the BRA. There will also be a 107,747-square-foot parking garage, with spaces for approximately 1,350 vehicles.

The project being developed by the Massachusetts Convention Center Authority is located at 371-401 D St. and will be developed on a vacant 5.6-acre parcel there. The MCCA acquired the land this past October, and selected the CV-led team in March after issuing an RFP last fall.

A second proposal, from Carpenter & Co. and Hyatt Hotels, called for a 300-room Hyatt Place hotel and a 200-room Hyatt House hotel. “We were fortunate to have two strong proposals submitted, demonstrating the strength of our hotel market and the appeal of the opportunity presented in the RFP,” said MCCA executive director James E. Rooney when the winning team was announced. “These hotels will provide much-needed mid-priced hotel rooms, contributing to the ongoing success of the BCEC and the South Boston Waterfront.”

The development team will enter into a ground lease with the MCCA and will be responsible for designing, 100% financing, constructing and owning and operating the hotels, according to the MCCA. Within a few years after opening, the hotels are expected to generate more than $5 million annually in tax revenues, the authority states.

In permit applications filed with the city and state this past December, the MCCA also called for a potential second “headquarters” hotel, which would complement the existing Westin Boston Waterfront Hotel next to the BCEC, as well as the future expansion of the convention center itself. The second headquarters hotel and the BCEC expansion are in the planning stages; the Massachusetts Legislature would need to sign off on the latter.