News & Updates

New Mid-Priced Hotels in South Boston Waterfront Break Ground, Critical to Making Boston a Top Convention Destination

Dec 12, 2013

Mayor Thomas M. Menino joined Mayor‐elect Marty Walsh, officials from the Massachusetts Convention Center Authority, CV Properties, and Starwood Hotels & Resorts Worldwide, Inc for a groundbreaking ceremony at the future site of a 330‐room Aloft Hotel and a 180‐room extended stay Element Hotel on D Street in the South Boston Waterfront, directly across from the Boston Convention & Exhibition Center.

“When we made the decision to enter the international meetings and convention industry with a state‐of‐the art facility back in the 90s, we knew Boston would shine,” Mayor Thomas M. Menino said. “Today, the Boston Convention & Exhibition Center and the work of Jim Rooney have helped put Boston on the global stage. With the groundbreaking for these two new hotels, and the MCCA’s future expansion efforts, the sky truly is the limit."

The $140 million, privately constructed and owned hotels containing a total of 510 rooms will be built on land acquired by the MCCA and in a partnership between CV Properties, Starwood Hotels, majority equity partner Ares Management‐controlled funds, and the MCCA. The hotels are expected to open in 2015.

“These hotels will provide much‐needed mid‐priced hotel rooms not only to the South Boston Waterfront but to Boston as a whole,” said James E. Rooney, MCCA Executive Director. “This is the first of several groundbreakings we hope take place as we push Boston and Massachusetts towards being among the top meeting and convention destinations in the world. We thank CV Properties, Starwood Hotels and a host of others for this $140 million private investment that will create hundreds of jobs.”

“We are thrilled to partner with Starwood Hotels and Ares Management to create an exciting new destination for travelers to Boston. This further strengthens our commitment to the Innovation District and the South Boston community,” said Richard Galvin, President of CV Properties.

“Starwood has a long and successful history in Boston and we’re excited to build upon that foundation to welcome guests to this emerging and vibrant community,” stated Allison Reid, Senior Vice President, Starwood Hotels North America Development. “Given their dynamic positioning and global appeal, the Aloft and Element brands are especially well suited for Boston and the Innovation District.”

The CV Properties, Starwood and Ares Management team will be responsible for designing, financing, constructing and owning and operating the hotels. To ensure high‐quality design, the hotels must comply with detailed design guidelines developed jointly by the MCCA, a community‐based Design Advisory Committee, and the Boston Redevelopment Authority. These groups also engaged in a larger‐scale urban design initiative that will establish a vision and goals to guide future development on D Street around the BCEC. The objective is to transform D Street into a distinctive corridor, lined with active uses, that connects the South Boston neighborhood to the waterfront.

CV Properties/Starwood/Ares Management and the MCCA have entered into a ground lease that will generate substantial rent for the Authority. In addition, a few years after opening, the hotels are expected to generate more than $5 million annually in property tax, sales tax, income tax, and hotel occupancy tax. Overall, the project is expected to create 370 construction jobs and 175 permanent jobs.

These two new hotels are part of a larger effort by the MCCA to encourage additional These two new hotels are part of a larger effort by the MCCA to encourage additional hotel development near the BCEC. With only 1,690 hotel rooms within walking distance, the BCEC has far fewer available rooms than its competitors, which average 7,584 rooms. Additionally, these two new hotel offerings will provide a lower priced alternative to the existing hotels near the BCEC, which are all higher‐priced “four‐star” hotels.

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