Square Mile, JP Morgan Provide $75M in Acquisition Financing for Boston Hotel
Square Mile Capital Management and J.P. Morgan Chase have joined forces to provide $75 million in acquisition financing for Columbia Sussex Corporation’s purchase of Boston Marriott Quincy, a 466-key hotel in Quincy, Mass., Square Mile announced this morning.
A source close to the transaction told CO that J.P. Morgan is holding the $58 million senior piece of the financing while Square Mile is holding the $17 million subordinate piece. Officials at the lenders declined to comment.
“This transaction presented a compelling opportunity for Square Mile to expand its exposure in the Boston market, which is one of the strongest lodging markets in the country,” Michael Kusy, an associate at Square Mile, said in prepared remarks. “Boston Marriott Quincy has historically outperformed its competitive set, and we view the asset’s location in Quincy directly off of I-93 as a significant advantage. We are confident in the ability of Columbia Sussex, which is a repeat borrower of our firm and among the largest and most effective hotel owner-operators in the country, to enhance the property’s performance.”
Boston Marriott Quincy is located in South Boston’s Quincy market. Rooms on the hotel’s upper floors have views of the Boston skyline and Massachusetts coastline and property amenities include dining space on the ground floor, a fitness center, a business center, 16,000 square feet of renovated meeting space and an indoor swimming pool.
Kentucky-based Columbia Sussex Corporation is a privately-owned hotel owner and operator with a portfolio of more than 13,000-keys across the U.S. and St. Maarten. Earlier this month, Square Mile provided a $41 million acquisition loan for its purchase of the 289-key Philadelphia Marriott West hotel in Coshohocken, Penn.
Hodges Ward Elliot’s Lawrence Britvan and Matt Jacobs arranged the financing for both the Boston Marriott Quincy and the Philadelphia Marriott West transactions.
Officials at J.P. Morgan declined to comment. Officials at Columbia Sussex did not respond to a request for comment.