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RLJ Lodging Acquires AC Hotel by Marriott Boston Downtown for $89M
RLJ Lodging Trust has acquired the fee simple interest in the 205-room AC Hotel by Marriott Boston Downtown for a purchase price of $89 million.
The hotel is located within the mixed-use Ink Block development (named in recognition of the site’s transformation of the former Boston Herald newspaper headquarters) and is expected to generate 7.5% to 8.0% NOI yield. The company funded the acquisition with existing cash on its balance sheet.
AC Hotel Boston Downtown is the only hotel in the Ink Block’s four-phase development. The property is expected benefit from growth of office and life science laboratory space in the area along with its proximity to Tufts Medical Center and Boston Medical Center.
“We are confident that the addition of this hotel will enhance our portfolio’s growth profile throughout this cycle and fits our investment thesis of buying premium-branded hotels within growth markets,” commented Leslie D. Hale, RLJ Lodging’s president and CEO.
- ◦Sale/Acquisition
