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Convention Center Hotel Secures $120M in Financing

BOSTON-The developers of the convention center hotel nail down the final $120 million in funding. The 790-room Westin hotel is being built near the Boston Convention and Exhibition Center and was considered crucial to its success.

By Naomi Grossman | Updated on February 25, 2004

BOSTON-The developers of the convention center hotel being built on South Boston’s waterfront secured the final $120 million in funding they need to move forward with the project. The 790-room Westin hotel is being built near the Boston Convention and Exhibition Center, an $800-million, taxpayer-financed facility. The hotel, considered crucial to the success of the center, was initially supposed to open with the center this year, but the notoriously difficult hotel financing market, coupled with the recent recession, forced the developers to delay its construction. The most recent financing deadline was March 1.

Carpenter & Co., Inc. is a co-developer of the project along with Starwood Hotels & Resorts Worldwide Inc. and local development partners Stephen Karp, Steven Fischman, Joseph Fallon and Joseph O’Donnell. The financing commitment provided by the lead lender Scotia Capital, a member of Scotiabank Group with eight participating banks, supplements funds previously committed by the development team, which is called Boston Convention Center Hotel LLC, and Starwood Hotels. It also supplements the recent $15-million loan from the city.

“This financial commitment by Scotia Capital confirms that this hotel will be built,” says Fallon, adding that the project in the final stages of development and a construction schedule is being worked out with Suffolk Construction. “We expect to complete loan documents and due diligence with the banks by the end of April. We’re optimistic that construction will then start immediately.”

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