JLL secures $330.7M in construction financing for Omni Boston Hotel at the Seaport
New convention center hotel will be largest in Seaport District and fourth largest in Massachusetts
BOSTON, August 8, 2018 – The Davis Companies, Omni Hotels & Resorts and JLL today announced the closing of a $330.7 million financing on behalf of New Boston Hospitality, an affiliate of The Davis Companies, and Omni Hotels & Resorts. The loan will be used to construct the Omni Boston Hotel at the Seaport, a 1,055-room luxury hotel located directly across the street from and connected by underground tunnel to the Boston Convention and Exhibition Center in Boston’s Seaport District. The project was selected as the winning development plan in a competition held by the Massachusetts Port Authority (“Massport”) in 2016, and is slated for completion in early 2021. The construction loan was provided through a syndicate led by U.S. Bank, Santander and M&T Bank.
The loan closing is the culmination of a process commenced by Massport in 2014 to select a developer for the high profile site, which is owned by Massport and leased to the developers on a long term basis. Following a comprehensive process, New Boston Hospitality and its partner Omni Hotels & Resorts were selected to develop the site in 2016, as a result of their innovative response. The proposal included a highly efficient design with the ability to locate over 1,000 rooms on the site, as well as financial strength and commitment to diversity and inclusion in the design, construction and ownership of the project.
According to The Davis Companies Founder and CEO Jonathan G. Davis, “We’re incredibly proud that Massport awarded our team the opportunity to develop this transformational project, which will play a key role in the continuing growth of the Seaport as a world class convention and business destination and which has played a key role in re-defining how innovative approaches to public private projects like this one can serve to advance the cause of diversity and inclusion in the real estate development industry.”
JLL Managing Directors Kevin Davis and Bob Webster and Executive Vice President Jon Schneider led the team on the transaction.
“This project was unique in so many ways – a top five lodging market, a great location adjacent to the convention center and a strong economic commitment from the operator and ownership group – and it resulted in an incredibly strong response from the lending community. Opportunities to finance a project of this caliber are rare,” said Davis.
Added Schneider, “Lodging supply growth in the Seaport District has been minimal. The addition of Omni Boston Hotel at the Seaport will really meet that demand and solidify Boston as a premier convention destination, both nationally and internationally.”
The property is located across the street from the Boston Convention and Exhibition Center and will feature 1,055 guestrooms, making it the fourth largest hotel in Massachusetts, and approximately 111,700 square feet on convention space, including a 25,000 square-foot grand ballroom that will be the largest hotel ballroom in Boston. Additional facilities and amenities include more than 47,000 square feet of retail space, a 13,000 square-foot expansive spa and fitness center and an outdoor pool and event venue.
JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totalling more than $71 billion worldwide. The group’s 350-strong global team in over 20 countries also closed more than 5,300 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with operations in over 80 countries and a global workforce of 88,000 as of September 30, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com