A luxury hotel in Boston, due to the financial incapacity to continue with its operations, W Hotel is presently being sold to a Maryland-based investment firm – Pebblebrook Hotel Trust. The luxury hotel‘s management, according to a report, had already encountered early financial trouble even before the construction of the hotel was done, but only filed for Chapter 11 bankruptcy protection last year.
In Atlanta, another luxury hotel is acquired by an investment company — Tavistock Group. St. Regis Hotel, the 151-room five star luxury hotel has also 53 luxurious residences, and is currently manage by a hospitality ownership and management organization — Starwood Hotels & Resorts.
The Boston luxury hotel has 235 rooms on its first fifteen floors and 123 luxury residences on the top floors, which resembles an establishment that emphasizes luxury amenities.
The financial problem was worsened with SW Boston selling only handful condominium units in the luxury hotel, which is expected to be a great financial support for of the hotel’s early operations.
Pebblebrook Hotel Trust, the luxury hotel’s new owner, is a real estate investment trust that aims to acquire hotel properties that were struggling from recession. It has acquired the InterContinental Buckhead Hotel in Atlanta, Hotel Monaco in Washington DC, and Sir Francis Drake Hotel in San Francisco.
According to a report, the W Hotel was sold for $89.5 million which is only a part of the entire hotel building. The unsold condo units in the luxury hotel will still continue to be operated under the W Brand. As of February this year, 26 condo units are already been sold and had several additional units under agreement.
The money from the sale will be used by the management to repay the debt related to the construction of the luxury hotel and condominiums that cost $234 million to build.