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Developer Declines City Loan for Luxury Hotel

BOSTON-Developer Robin Brown of CWB Boylston turns down the city's offer of a $15-million loan from its recently created Hotel Development Loan Fund.

By Naomi Grossman | Updated on December 16, 2003

BOSTON-Developer Robin Brown of CWB Boylston turned down the city’s offer to help finance his $230-million hotel and condominium project, the Mandarin Oriental Hotel, with a $15-million loan. The financing was part of $40 million in loans that the city offered through its recently created Hotel Development Loan Fund. The program was launched in August in the hopes it would stimulate economic growth. The other two hotel projects selected to receive loans were the Westin Convention Center, a 795-room hotel that will receive $15 million, and the Regent Boston Battery Wharf, a 150-room hotel that will receive $10 million. The funding is being made available through the Department of Housing and Urban Development.

In a statement Brown notes that his firm received the final term sheets for the HUD loan that was awarded to his project. “Upon evaluation of those terms, we have decided not to avail ourselves of this opportunity,” he says. “As a result of the increasing stability of the economic climate, coupled with strong interest in our residences, we are most hopeful that we will be able to proceed with financing without the assistance of the program.”

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