Pebblebrook REIT buys W Boston Hotel out of bankruptcy

BOSTON The hotel component of W Boston Hotel & Residences has been acquired by Pebblebrook Hotel Trust, less than a year after the developer filed for bankruptcy protection following slow condominium sales.

The Maryland-based REIT is buying the 235-key hotel from developer SW Hotel Venture LLC for US$89.5 million, but it is not buying any of the property’s 123 condos, making the purchase price about US$381,000 per key. The unsold condo units will be controlled by SW Boston, a subsidiary of Sawyer Enterprises, Boston Globe reports.

The hotel will continue to be operated under the W flag.