BOSTON — Union Investment Real Estate, a German investor, has agreed to purchase The Godfrey Hotel Boston from a joint venture of Oxford Capital Group and an affiliate of Walton Street Capital for $180 million.
The Godfrey Hotel Boston is a 242-room hotel located in the city’s Downtown Crossing neighborhood scheduled to open in January 2016. Under a sale lease/management back transaction, the sellers will manage the hotel once opened.
The hotel is situated in Boston’s business district near the seaport. Downtown Boston is in the midst of a transformation, as reflected in a number of new high-rise residential and retail developments as well as significant refurbishments of office buildings, apartments and retail properties.
The Godfrey will offer amenities including George Howell Coffee, a fitness center, a soon-to-be-announced partnership with a local restaurant group, and an executive boardroom.
“We are confident in the future success of The Godfrey and that the property, brand and management platform will benefit from the transaction,” says John Rutledge, founder, president and CEO of Oxford Capital Group.
The Godfrey Hotel Boston transaction is structured as a 25-year lease covering 100 percent of the total rentable area of 135,000 square feet based on an annual fixed rent.
“The international growth of our hotel investment activities is based on a clear strategy of expanding our hotel portfolio and diversifying even further across all asset classes,” says Andreas Locher, head of investment management hotels at Union Investment Real Estate.
— Haisten Willis