Real estate investment trust RLJ Lodging Trust has purchased the AC Hotel by Marriott Boston Downtown located in Massachusetts, US.
The recently constructed purpose-built property opened in 2018 and is located within the mixed-use development Ink Block hub in Downtown Boston.
The purchase price of the 205-room hotel is valued at $89.0m or approximately $434,000 per key.
The acquisition is funded with the company’s existing cash on its balance sheet.
The AC Hotel Boston Downtown offers guest amenities such as the AC Lounge bar, AC Kitchen, AC Store, and an advanced fitness centre.
It also provides on-site parking and car charging stations and around 2,500ft2 of flexible and customisable meeting space, outdoor courtyards.
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AC Hotel by Marriott Boston Downtown is suitable for business and leisure guests. It is anticipated to generate 7.5% to 8.0% NOI yield when fully operational.
RLJ Lodging Trust president and chief executive officer Leslie Hale said: “We are pleased to expand our footprint in Boston Downtown by acquiring this recently built asset in the heart of Boston’s fast-growing, life sciences and technology core.
“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.
“This off-market acquisition also demonstrates our team’s ability to source attractive opportunities at discounts to both replacement cost and pre-COVID pricing. Our strong balance sheet positions us extremely well to continue to pursue additional external growth opportunities.”
AC Hotel Boston Downtown marks the third property for RLJ Lodging Trust in the Boston market.