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North America’s First Planned Raffles Hotel Lands Construction Financing

The Planned Raffles Hotel & Residences Is Expected To Rise Nearly 400 Feet Behind The Fairmont Copley Plaza, One Of Boston's Original Luxury Hotels.

A Back Bay luxury hotel project announced more than a year ago has finally landed a construction loan.

The Noannet Group and Saunders Hotel Group, development partners of the proposed Raffles Boston Back Bay Hotel & Residences, have secured $314M in construction financing from New York-based Madison Realty Capital. Cain International will provide most of the equity to develop the more than $400M project.

The planned 147-room hotel, 146-residence development will replace the Boston Common Hotel and Conference Center at 40 Trinity Place by Back Bay Station. It will include amenities and dining options for both guests and residents.

“We are thrilled to be entering the Boston market with such a premier hospitality brand and fantastic partners who have been long time contributors to the development of this great city,” Cain International CEO Jonathan Goldstein said in a prepared statement. “We look forward to bringing a best-in-class property to the Back Bay that seeks to not only meet but exceeds the expectations of today’s consumers.”

Construction is expected to begin later this year, but representatives with the development team declined to comment on details beyond the financing.

Cain International has a sizable luxury hotel portfolio across several U.S. gateway cities, including an equity investment made last year in the Beverly Hilton Hotel, the Waldorf Astoria Beverly Hills and an adjacent property.

Raffles was acquired by French hotel company AccorHotels in 2016. The 400-foot Boston Raffles would be the hotel brand’s first new location in North America and comes amid a luxury hotel boom across the city.

The Four Seasons One Dalton opened at the end of May and Encore Boston Harbor debuted a month later. Significant renovations are underway at both the Taj Boston and The Langham, Boston.

About 10% of the more than 10,000 hotel room in the Boston and Cambridge development pipeline are in the luxury sector, Pinnacle Advisory Group Vice President Sebastian Colella told Bisnow last month.

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