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Hotel Investment Market Heats Up

BOSTON-Boston's hotel market is heating up thanks to the sale this month of three hotel properties in the city's suburbs. Two more hotel properties are also under contract, a hospitality expert says.

By Beverly Ford | Updated on May 31, 2006

BOSTON-The area’s investment market is heating up the hotel sector as rising occupancy and rates make hotels lucrative buys, a hospitality expert tells GlobeSt.com. In the last month alone, three Boston area hotels have sold for more than $18 million and two more are under contract, Jim O’Connell, principal of O’Connell Hospitality Group LLC, of Danvers tells GlobeSt.com. He says investors are now looking to hotels to generate yields that were once only achieved through office and industrial investments.

Two more hotels in the Interstate 95 and Route 128 areas are also under contract, O’Connell says, adding that he expects at least seven more hotels to trade in the suburban market before the end of the year. “In the last few months, occupancy and average rates have increased. Now there is a clear trend so investors are willing to step up and acquire these properties.”

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