Dealmaker: Hersha Hospitality Acquires Boston Hotel, $113M

Hersha Hospitality Trust, Philadelphia, acquired the 136-room Envoy Hotel in Boston’s Seaport District for $112.5 million.

Holliday Fenoglio Fowler, Houston, marketed the property for seller Norwich Partners, Lebanon, N.H. HFF Managing Director Denny Meikleham and Director Alan Suzuki led the investment sales team.

Hersha CEO Jay Shah said the Envoy debuted in June 2015. “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,” he said.

The Envoy’s location on Sleeper Street straddles downtown Boston and the Seaport, close to the Innovation District and the Boston Convention Center and within walking distance of Boston Common, Faneuil Hall and the North End. It houses a 6,000-square-foot rooftop bar and a 3,900-square-foot restaurant. 

Hersha acquired the asset debt-free. It funded the acquisition with 1031 exchange proceeds from selling seven limited-service assets in Manhattan to its joint venture with Cindat Capital Management Limited, Beijing, for $571 million–$526,000 per key. The Cindat transaction generated $177 million for Hersha. 

Hersha Hospitality Trust now owns 56 hotels totaling 8,900 rooms in New York, Boston, Philadelphia, Washington, D.C. and Miami.