US: Florida-based Xenia Hotels & Resorts has sold the Hotel Commonwealth to luxury hotel operator Ohana Real Estate Investors for $113 million, $23 million less than it paid for the asset four years ago.
The Commonwealth is one of four properties that Xenia has sold as part of a plan to raise cash to pay off debt.
“Year to date, we have now sold four hotels for nearly $400 million,” said CEO Marcel Verbaas. “These dispositions have allowed us to efficiently raise a significant amount of capital at a superior cost to other alternatives.”
In 2016, the investment group paid $136 million to buy the hotel, which had recently added 96 rooms and extra meeting space.
The hotel’s new owner, Ohana, operates boutique luxury resorts in California; Park City, Utah; and Cabo San Lucas, Mexico. This is its first property in Boston. The company declined to comment but said the Commonwealth’s longtime managers, Sage Hospitality Group, would stay in place and that no major physical changes are planned.