Developer of W Boston Hotel files for bankruptcy protection

Another hotel bites the dust. The developer of the grand 28 storey W Boston Hotel and residences located in downtown Boston is facing foreclosure and has filed for bankruptcy protection. According to Boston Globe, SW Boston Hotel Venture LLC, a subsidiary of Sawyer Enterprises, show liabilities of $100 million to $500 million. This is what the documents filed in US Bankruptcy Court in Boston show.

October was a bad timing for the hotel to open when the condo real estate market was struggling. Merely 10 percent of the building’s 122 condominiums have been sold. The Globe reports that W units have sold for as much as $1.9 million for a three-bedroom and $345,000 for a studio. The posh hotel has 235 rooms on its first 15 floors whose rate is $300 per night. Due to the lackluster tourism, few people have been coming in town and hence, the hotel’s occupancy rate is low. But for those few who are staying, needn’t worry as hotel operations are not affected in such a situation.

The developer had been showing signs of its demise when a few months back, the City of Boston had to give them a $10.5 million loan to help finish the $234 million project.

Via: Boston , StarWoodhotels

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