Hersha Acquires The Envoy Hotel in Boston Seaport for $112.5 Million

Aug 10, 2016 0

BOSTON–Hersha Hospitality Trust, owner of upscale hotels in urban gateway markets, announced the Company has acquired the fee simple 136-room Envoy Hotel in Boston for $112.5 million.

“We are very pleased to acquire the award-winning, 4-Diamond Envoy Hotel in Boston’s Seaport District. The Envoy’s premiere waterfront location at the nexus of Boston’s Financial and Seaport districts leverages corporate demand from over 48 million square feet of office space, as well as 7-day-per-week leisure demand given the hotel’s proximity to Boston’s various tourist attractions and entertainment venues,”  said  Jay H. Shah, Hersha’s Chief Executive Officer.

Envoy Hotel Boston

Envoy Hotel Boston

He said world-class companies such as GE, which ranks 8th on the Fortune 500, and Vertex Pharmaceuticals have re-located their corporate headquarters to the city’s burgeoning Innovation District, now considered Boston’s most vibrant and fastest growing submarket. In addition, the development of popular restaurants, retail and residential have created a 24/7 atmosphere.

“The Envoy will gain market share as the hotel continues to ramp following its successful debut in June 2015. In addition, we will implement a more aggressive revenue management approach and plan to re-evaluate guestroom touchpoints and service delivery, along with the hotel’s food and beverage offerings, to align the overall guest experience with the discerning business and leisure guests in this fast growing submarket,” said Shah.

The Envoy’s location straddles downtown Boston and the Seaport. The hotel is proximate to significant and diverse corporate demand in Boston’s Financial District and the flourishing Innovation District, the 516,000 square foot Boston Convention & Exhibition Center, and the U.S. Federal Courthouse, and within walking distance to Boston Common, Faneuil Hall, the North End, South Station and only 3 miles from Logan International Airport.

The Envoy, recognized by USA Today as the ‘Best New Hotel in America’, and named the ‘Best New Hotel in Boston’ by Forbes, features 136 rooms, all with floor-to-ceiling windows that showcase views of Boston Harbor, the Financial District and the North End. The Envoy is also home to the popular 6,000 square foot Lookout rooftop bar, and the 3,900 square foot Outlook restaurant and bar. The fee simple asset, acquired unencumbered of debt or management, is affiliated with Marriott’s Autograph Collection, leveraging Marriott’s powerful distribution capabilities.

The acquisition was funded with 1031 exchange proceeds from the Company’s sale of seven limited service assets in Manhattan to the Company’s joint venture with an affiliate of Cindat Capital Management Limited (“Cindat”) at a trailing full-year 5.4% economic capitalization rate. The Cindat transaction generated $177 million in taxable gains for the Company. Through a series of reverse 1031 acquisitions that included the Ritz-Carlton Georgetown, the Sanctuary Resort and the Hilton Garden Inn M Street, as well as the acquisition of the Envoy, approximately $16 million of deferred taxable gains remain from the Cindat sale.

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Taj Hotels completes sale of Boston property for $125 million, had bought it for $175 million

Jul 13, 2016 0

Mumbai–Indian Hotels Company Limited (IHCL), which runs the brand of Taj Hotels Resorts and Palaces, here on Wednesday announced completion of the sale of its Taj Boston hotel to a consortium comprising New England Development, Eastern Real Estate, Rockpoint Group, Lubert-Adler and Highgate for $125 million.

Taj had acquired the hotel in 2006 for $170 million before rebranding the 273-room hotel the Taj Boston. In earlier filings, Taj had said the hotel had operated at a loss in recent years, most recently generating $34.1 million in revenue in fiscal 2015/6 but notching a loss of $7.3 million.

Entrance of Taj Boston (Photo: Taj Boston)

Entrance of Taj Boston (Photo: Taj Boston)

“We are pleased to inform…the divestment of the hotel for an aggregate consideration of $125 million. The net sale proceeds will be utilised largely to retire outstanding debt,” the company said in a Bombay Stock Exchange filing.

“The sale was in line with Taj’s global business strategy. We are excited about our relationship with our new partners, who are all recognised leaders in real estate development and have deep roots and expertise in this market. We will work together to ensure that the hotel will maintain unparalleled guest service standards of Taj while celebrating Boston culture and history,” Rakesh Sarna, MD and CEO of Taj Hotels Resorts and Palaces, said.

Taj Boston-outside“While this partnership will take over the ownership of the 90-year old, 273-key hotel, Taj Hotels Resorts and Palaces will retain its brand presence in Boston through a long-term management services agreement,” the company said in a statement.

As part of the transaction, New England Development, Eastern Real Estate and Highgate will serve as asset managers, working closely with the Taj Hotels Resorts and Palaces team, Rockpoint Group and Lubert Adler, the statement added.

All current bookings for hotel rooms, restaurants and banquets will be honoured, and guests can continue to book the hotel through existing channels, it said.

“We are thrilled to join with Eastern Real Estate, Rockpoint, Lubert-Adler and Highgate in acquiring this legendary hotel property – located in one of the country’s most famous shopping districts,” Stephen R. Karp, Chairman of New England Development, said.

“Taj Boston is an internationally acclaimed hotel due to its rich heritage, superb location and grand architecture,” he added.

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HHM Acquires Cambridge Hotel

Feb 11, 2016 0

CAMBRIDGE, MA—HHM, formerly known as Hersha Hospitality Management that operates 115 hotels across the United States, announced that it now owns and manages the Best Western Tria in Cambridge, MA, further expanding its private-investment platform and management footprint in the dynamic Boston market, HHM said in a statement.

The company plans to extensively renovate the 121-room property, with upgrades to the guestrooms, public areas and exterior façade that represent the style and vibrancy of the Cambridge community.

Naveen Kakarla

Naveen Kakarla

The Best Western Tria marks HHM’s eighth hotel in the Boston area, including the Boxer in the historic North End, the Courtyard Brookline, and the nearby Holiday Inn Express Cambridge. The newly acquired hotel was fully rebuilt in 2009 and now includes a Starbucks and an upgraded fitness center.

HHM’s acquisition was led by Shawn Tuli, Vice President of Acquisitions and Development, who grew up as a Cambridge local and is also an alumnus from nearby Harvard Business School.

“We are very excited to make an investment and further expand our roots in the Boston area, and have comprehensive plans to position this hotel to be a critical part of West Cambridge’s cultural fabric,” said Shawn Tuli. “On a personal level, I am overjoyed to be a part of a project that will offer improved amenities to a community that has given so much to me.”

The hotel is located in the Alewife neighborhood of West Cambridge and is close to Harvard University, MIT, Tufts, Boston University and Lesley University. West Cambridge has extremely high barriers to entry, and exhibits attractive residential, retail, and office characteristics with reputable tenants such as Forrester Research, headquartered a short distance from the hotel. The hotel is also in close proximity to Boston’s prominent red line, providing easy access to the city’s most trafficked locations such as Harvard Square, Boston Common, and South Station.

Hotel Tria

Hotel Tria

“We are thrilled to expand our investment platform into the Boston market and to be a part of Cambridge’s thriving market,” said HHM CEO Naveen Kakarla. “We look forward to developing unique programming throughout the hotel, which will appeal to locals, support the community and provide travelers with an authentic experience.”

The acquisition of the Best Western Tria comes shortly after HHM’s recent acquisition of the Residence Inn Philadelphia Conshohocken. The company also recently expanded its management and private investment portfolios in Florida, where in the past six months it assumed management of the Hilton Daytona Beach Resort and acquired the Sheraton Miami Airport Hotel and Executive Meeting Center.

HHM, formerly known as Hersha Hospitality Management, operates 115 hotels across the United States. Headquartered in Philadelphia, PA, the company has a private investment platform and engages in hotel acquisitions, management, asset management, and receivership for full-service and select service in top 25 markets. HHM also operates 28 independent hotels ranging from The Rittenhouse Hotel, a AAA Five Diamond property in Philadelphia, to the Larkspur Landing hotels, all-suite extended stay properties in Northern California and the Pacific Northwest.

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Umaid Bhawan Palace in Jodhpur bags world’s best hotel award

Jan 22, 2016 0

NEW DELHI–Umaid Bhawan Palace in Jodhpur, Rajasthan, bagged the award of the world’s best hotel at the Travellers’ Choice award organised by TripAdvisor, a popular travel website.

The winners of Travellers’ Choice Award, which entered its 14th year, were determined on the basis of the reviews and opinions collected in a single year from TripAdvisor travellers worldwide.

Umaid Bhawan Palace

Umaid Bhawan Palace

Umaid Bhawan Palace Jodhpur comes out on top this year by not only taking the first position in the Top hotels category in India and the world, but also winning the most number of awards (7) by an Indian hotel across categories.

“We are extremely proud to have been recognised by millions of TripAdvisor travellers who have voted us as Best in the World through their unbiased reviews. These awards are testament to Taj’s legacy of world-class service, rooted in the nobility of Indian heritage and traditions,” said chief revenue officer of Taj Hotels resorts and palaces, Chinmai Sharma.

Not just Umaid Bhawan Palace, but it was a day for Indian hotels to make a remarkable imprint on travel, accommodation and tourism platforms worldwide. 113 Indian hotels were awarded at the event across 6 categories: top hotels, luxury, best service, bargain, B&Bs and Inns, small hotels.

“An Indian hotel is the No.1 hotel in the world, as determined by the truest yardstick possible, the reviews and opinions of the world’s largest travel community. I doff my hat to the Umaid Bhawan Palace hotel for achieving this extraordinary distinction, and to all the other distinguished Indian hotels that stud each of the 6 different category lists,” said Nikhil Ganju, country manager, TripAdvisor India.

The Oberoi Vanvilas, Taj Rambagh Palace, Orange County Resorts and Bougainvillea Guest House are other resorts that made it to the world’s best hotels.

In the best hotels Asia category too, it was Indian hotels that grabbed the limelight with 26 awards, gaining the top spot. Eleven hotels secured spots in the top ten ranks across five categories – Top, Luxury, Best Service, Inns and B&Bs and Bargain.

In the best hotels category across India, Oberoi Vanvilas, Rajasthan bagged the top spot for its luxurious offering while Wildflower Hall, Himachal Pradesh was awarded the top prize for its best service. Casa Da Praia and Bougainvillea Guest House of Goa got the top award for B&B and Inns and bargain respectively.

Rajasthan retained the first spot amongst the Indian states with 58 awards followed by Kerala with 26 awards and Karnataka with 20 awards. And among the metro cities, it was the national capital that swept the top rank with 12 awards

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