ORLANDO, Fla.—Xenia Hotels & Resorts, Inc. has announced that it has agreed to acquire the Hotel Commonwealth in Boston, Mass. for a purchase price of $136 million. The luxury independent, boutique lifestyle hotel is located in the Kenmore Square neighborhood of Boston in close proximity to Fenway Park and Boston University and, upon completion of its current expansion project, will boast 245 large rooms. The hotel is currently undergoing a significant expansion, including the construction of a new six-story wing featuring 96 additional guest rooms, over 7,000 square feet of indoor meeting space, nearly 1,700 square feet of outdoor patio space, and a three-level parking garage. The transaction, which is subject to satisfactory completion of the expansion project and customary closing conditions, is expected to close in early 2016. The hotel will continue to be managed by Sage Hospitality. It has managed the property since 2012.
“We are excited to have reached an agreement to acquire the Hotel Commonwealth, which allows us the opportunity to expand our presence in the highly desirable Boston market,” said Marcel Verbaas, president and chief executive officer of Xenia Hotels & Resorts. “The combination of the quality level of the hotel, its location in a vibrant neighborhood in a major lodging market and the opportunity to expand our relationship with Sage results in an excellent strategic fit for Xenia.”
The property had a RevPAR of $235 during the trailing 12 months ending June 30, 2015. The Company currently forecasts that the hotel will generate EBITDA of $9.5 to $11 million during 2016.
The hotel completed a comprehensive renovation of its existing guest rooms in early 2014 while the lobby and meeting space were renovated in the first half of 2015. The hotel is just west of Back Bay, the center of Boston and home to the John Hancock Tower, the Prudential Building, Copley Square, and Newbury Street. Immediately southwest of the hotel is the Longwood Medical Area, the largest concentration of hospitals, medical schools, and medical research facilities in Boston. Located on the street level below the hotel are three restaurants and bars, as well as nearly 12,000 square feet of retail space. The restaurants and retail space are not being acquired in this transaction.
“We are very pleased to expand our relationship with Sage Hospitality,” continued Mr. Verbaas. “We believe Sage’s extensive experience in operating unique boutique properties, its in-depth knowledge of this property, and our strong existing relationship make the company an ideal fit as the continued operator of this hotel.”
