Hilton has marked its return to Boston with the Hilton Boston Park Plaza. Formerly known as the Boston Park Plaza, the hotel marks the return of Hilton in the Back Bay neighborhood.
One of the largest hotels in Massachusetts, it was acquired by Parks Hospitality Holdings in October for $370 million or $350,000 per key.
The hotel was Hilton’s first property in Boston after Conrad Hilton, the founder of the Hilton Hotels chain, acquired it in the mid-20th century.
The hotel first welcomed guests in 1927 when it opened as The Statler Hotel. Hotelier E.M. Statler originally conceived it as a city within a city. After Hilton purchased it in 1954 as part of The Statler Hotel chain, the hotel was renamed Statler Hilton in 1957. A local family acquired the hotel in 1976 and renamed it Boston Park Plaza Hotel & Towers.
With more than 11,000 rooms and over 11,000 U.S.-based multi-family units in its portfolio, this acquisition helps Parks Hospitality grow its presence nationwide. It is the company’s first property in the Northeastern U.S.
“Acquiring the celebrated Boston Park Plaza is a significant milestone for Parks Hospitality Holdings,” Charles El-Mann Fasja, CEO of Parks Hospitality, said in a release. “This addition to our irreplaceable hotel real estate portfolio marks a new era of expansion for PHH, bringing our expertise in hospitality development and investment from Mexico to locations across the U.S. We’re honored to continue expanding our partnership with Hilton with this iconic project and have future plans to scale our presence across other key U.S. cities.”
The sale price represents a 12.1x multiple on hotel adjusted EBITDA and a 7.1% cap rate on hotel net operating income for the trailing four-quarter period ended June 30. The hotel’s transition to a Hilton property is part of the post-acquisition rebranding initiative.
Sunstone acquired the hotel in 2013 for a reported sum of $250 million and reimagined the historic property. The California-based company decided to sell the property after anticipating it would need “significant additional investment to maintain its competitive position and sustain its current level of earnings.”
Hilton Boston Park Plaza features 1,060 rooms (which include 55 suites) celebrating New England’s legacy. The hotel also offers two dining options along with an onsite Starbucks café, 20,000 square feet of health facilities, 70,000 square feet of meeting and event space and a full-service FedEx business center.
The hotel also houses Boston’s first Topgolf Swing Suite, which offers PGA-certified lessons, virtual golf courses and a virtual driving range available for private events.
“We are delighted to welcome back one of our first Boston properties, Hilton Boston Park Plaza, to the Hilton family. The hotel’s exceptional location in the heart of the city, coupled with the property’s friendly service and thoughtful amenities, offer the perfect homebase for every traveler and any occasion,” said Danny Hughes, president, Americas, Hilton. “Since Conrad Hilton purchased the property in 1954, we’ve built upon his vision to fill the earth with the light and warmth of hospitality. Today, we are proud to welcome travelers at more than 60 Hilton hotels across ten brands in Boston.”
Besides Hilton Boston Park Plaza, Hilton has more than 60 hotels under 10 brands in the market. Boston is a key destination in Hilton’s portfolio, with 10 more hotels in various stages of development across the city.