X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BOSTON-The 464-key Marriott Boston Quincy Hotel has been purchased by Sunstone Hotel Investors Inc. for $116.6 million. The transaction factors out to $251,000 per room and includes the purchase of an adjacent parcel entitled for development.

In conjunction with the purchase, Sunstone settled at the end of April on the forward sale agreement. It issued four million shares of common stock to Citibank NA, which totals about $111 million.

“The Marriott Boston Quincy is a high-quality asset which, combined with recent acquisition of the Marriott Long Wharf, increases our presence in the high-growth Boston market,” says Steven Goldman, Sunstone’s CEO, in a statement. “We will be consolidating the back of house operations for the two hotels, which will also allow us to add up to nine additional guest rooms to the Long Wharf property, thereby creating operating efficiencies and driving additional revenues.”

Sunstone completed the purchase of the Boston Marriott Long Wharf at the end of March, paying $228.2 million for the 402-key property. At the time Goldman said, “The acquisition of the Marriott Long Wharf fits well with our strategy of assembling a ‘best-in-class’ portfolio of institutional quality assets located in high growth, high barrier markets.”

The Boston area’s hotel market has seen a number of transactions in the last two years. In November, the Ritz Carlton was acquired for $170 million by Taj Hotels, Resorts and Palaces of Mumbai, India. In February, Bethesda, MD-based Diamond Rock Hospitality Co. paid $330.3 million for the 793-key Westin Waterfront Boston Hotel. The firm also took 100,000 sf of retail space and the rights to build a 325-room hotel on an adjacent parcel as part of that deal.

With these last two transactions San Clemente, CA-based Sunstone has a stake in 53 hotels totaling 17,583 rooms. The company focuses its efforts on upper-upscale properties and nationally recognized brands like Marriott, Hyatt, Hilton and Starwood.

At the beginning of January the company purchased the 499-room LAX Renaissance hotel for $65 million. As GlobeSt.com reported, the price paid was the highest price paid per room in the submarket surrounding the Los Angeles International Airport. In December, Sunstone along with Whitehall Street Global Real Estate Limited Partnership and Highgate Holdings purchased the 460-key Doubletree Guest Suites Hotel in Times Square. Sunstone invested $68.5 million in the acquisition.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.