Hotel Commonwealth Sells for $136 Million
Xenia Hotels & Resorts will purchase Kenmore Square’s Hotel Commonwealth from Sage Hospitality for $136 million, the Orlando-based chain announced Tuesday.
Sage is flipping the 149-room, four-star boutique hotel it bought from Boston University in 2012 for $79 million. The deal included 30,000 square-feet in sought-after restaurant and retail space, as well as developable land behind the hotel. That land will be the home of an additional six-story wing with 96 rooms and a three-level parking garage.
“We are excited to have reached an agreement to acquire the Hotel Commonwealth, which allows us the opportunity to expand our presence in the highly desirable Boston market,” said Marcel Verbaas, president and CEO of Xenia, in a release. “The combination of the quality level of the hotel, its location in a vibrant neighborhood in a major lodging market and the opportunity to expand our relationship with Sage results in an excellent strategic fit for Xenia.”
Xenia expects Hotel Commonwealth—whose existing guest rooms, meeting rooms, and lobby have been renovated within the last year—to generate $9.5 to $11 million in net earnings in 2016. “The combination of the quality level of the hotel, its location in a vibrant neighborhood in a major lodging market and the opportunity to expand our relationship with Sage results in an excellent strategic fit for Xenia,” Verbaas said.
Sage operates under a family of brands including Westin, JW Marriott, Sheraton, Doubletree, and Hilton. BU first bought the property in 1982.
“The sale is aligned with Boston University’s long-term interest in improving Kenmore Square as a commercial gateway to the Charles River Campus,” Gary Nicksa, BU’s senior vice president for operations, said in 2012. “Sage Hospitality shares our vision of continuing to support the ongoing transformation of the square into a vibrant destination.”