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Ashford To Sell Hilton Boston Back Bay Hotel For $171M

Hospitality REIT Ashford Hospitality Trust is selling the Hilton Boston Back Bay as part of its debt repayment plan.

Hilton Boston Back Bay Hotel.
Ashford Hospitality Trust Has Agreed To Sell The Hilton Boston Back Bay Hotel For $171M.

The Dallas-based REIT signed an agreement to sell the 390-room hotel for $171M to an undisclosed buyer, it announced Thursday morning. The sale is expected to close in March.

"We are pleased to announce the planned sale of the Hilton Boston Back Bay for a very attractive value," Ashford CEO Rob Hays said in a statement. "This sale is an early step toward the recently announced plan to pay off our strategic financing.  We continue to have several assets in the market at various stages of the sales process and look forward to providing more updates in the coming weeks."

At the beginning of the month, Ashford Hospitality Trust shared its strategy to sell 12 hotels and refinance its loans to pay off its $2.6B in debt coming due at the beginning of 2026.

Other hotels listed for sale include the 444-room Ritz-Carlton Atlanta and the 350-room Residence Inn Orlando at SeaWorld. The REIT has identified four loans it plans to refinance, including its Morgan Stanley pool loan tied to 17 hotels.

The sale comes after Boston's hospitality market fared well at the end of 2023, seeing revenue per available room at roughly 110% of its 2019 levels, according to hospitality consulting firm HVS. Occupancy was around 97% of its pre-pandemic peak.

However, there have been few major hotel sales in the city since the beginning of the pandemic.

In October, Parks Hospitality Holdings acquired the 1,060-room Boston Park Plaza from Sunstone Hotel Investors for $370M and rebranded it as the Hilton Boston Park Plaza.

A joint venture between Värde Partners and Hawkins Way Capital bought the 1,220-room Sheraton Boston Hotel in February 2020 for $233M from Host Hotels & Resorts, WCVB reported. The joint venture filed plans in August to turn part of the hotel into Northeastern University dorm rooms.

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