First it was Hilton's epic bid earlier this winter for the hotel portion of the Mandarin Oriental: $946,000 per room, for a total of just over $140,000,000. Now comes word of a deal for the brand-new Godfrey in Downtown Crossing.
Steve Adams at Banker & Tradesman reports that a German-based outfit has bought the 242-key property for $718,000 per room, or a total price of just shy of $174,000,000. That makes the Godfrey trade, for now, the second-priciest per-room deal ever for a Boston hotel (behind the $731K paid for the Revere last year—Hilton's Mandarin Oriental deal has yet to close).
Why the big-time tags for the city's inns? We're guessing it's the extremely high occupancy rates. For instance, in July, 88.1 percent of the hotel rooms in Boston were booked on any given evening, and the rate this winter hovers around the 80-percent mark. This is, of course, fabulous news for owners and investors, but not so much for those trying to book. Perhaps 4,000-plus new rooms over the next three years will balance things out a bit.
· German Investors Buy New Downtown Crossing Hotel For $173.9M [B&T]
· Hilton's Mandarin Oriental Bid Could Set Boston Hotel Record [Curbed Boston]
· Boston's Many New Hotels Will Find a Warm Reception [Curbed Boston]
· Exclusive Tour of Downtown Crossing's New Godfrey Hotel [Curbed Boston]
· Our Updated Map of the Many New Hotels Going Up in Boston [Curbed Boston]