Ashford Hospitality Trust Inc. has recently announced the sale of the Hilton Boston Back Bay for $171 million, with the transaction set to be finalized later this month according to a report by Boston Business Journal. This decision is in line with Ashford’s strategic plan to pay off maturing financing and decrease leverage.
The 390-room property will be sold at an impressive price of $438,000 per room, making it one of the most significant hotel sales in Boston since the onset of COVID-19. The city’s hotel market has displayed remarkable recovery as revenue per available room (RevPAR) is projected to surpass pre-pandemic levels and reach $166 this year.
In 2020, The Hilton Boston Back Bay generated a net income of $2.3 million and an EBITDA of $16.7 million. After accounting for mortgage repayment and closing costs, Ashford anticipates receiving approximately $70 million in net proceeds from this sale.
