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Starwood Gets Another Year to Find Hotel Financing

BOSTON-Starwood Hotels and Resorts Worldwide has another year to find financing for the 1,120-room convention center hotel being built on the South Boston waterfront. The extension means that the hotel will open a year later than the convention center, which is scheduled to open in 2004.

By Naomi Grossman | Updated on December 19, 2001

BOSTON-In yet another setback to the convention center being built on the waterfront in South Boston, the development of the 1,120-room convention center hotel is being pushed back as its developers, Starwood Hotels and Resorts Worldwide, gets another year to find financing for the $264-million project.

Starwood was supposed to have the deal closed by Feb. 1, 2002 but has had difficulty financing the project even before the Sept. 11 attacks. Since then, prospects have dimmed even further. “We saw it was happening in the capital markets before Sept. 11,” Andy Antrobus, spokesperson for the Massachusetts Convention Center Authority, tells GlobeSt.com. “But post-September 11 it was clear that the previous arrangements were based on business conditions that don’t exist any longer.” Antrobus emphasizes that Starwood is not at fault in this situation. “It would have been difficult for anyone to finance a hotel in the current climate,” he says.

The company now has until Feb. 1, 2003 to close the deal, meaning that the hotel will not open until 2005–a year after the convention center is scheduled to open. The hotel is considered crucial to the success of the center.

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