The Hilton Back Bay hotel, a staple in Boston's upscale lodging landscape, has changed ownership with a hefty price tag of $171 million. The 390-room property located at 40 Dalton St. has been snapped up by a joint venture between New York's Certares Management and California's Belcourt Capital Partners. The news came from an announcement made by the seller, Ashford Hospitality Trust, which has been offloading assets in an attempt to stabilize its financial footing.

According to the Boston Globe, the hotel which includes amenities like a 209-space parking garage and a restaurant and bar, came under new ownership as Ashford Hospitality Trust goes through a series of financial challenges that's seen them transferring control of 19 hotels back to lenders. The company refinanced the mortgage on the Back Bay hotel back in 2021.

Facilitating the deal was JLL's Hotels & Hospitality group, which not only secured the buyer but also arranged acquisition financing. The Hilton's prime location has long made it a desirable property, set conveniently in Back Bay, with access to some of Boston's top attractions and institutions such as Fenway Park, Berklee College of Music, and Northeastern University. "We experienced an incredibly strong response to this opportunity from both the equity and debt markets, with a deep pool of potential buyers and lenders. The transaction offered the optimal combination of great real estate with strong in-place cash flow and upside opportunity through a renovation, coupled with a strong Boston market recovery," said Kevin Davis, Americas CEO, spearheading the sales and financing efforts, as mentioned by Boston Real Estate Times.

The new proprietors aren't planning significant changes to the hotel's management but aim to invest $25-30 million in what they describe as a "pretty thorough cosmetic renovation." Nolan Hecht, senior managing director and head of real estate at Certares, told the Boston Globe, "our game plan is obviously to renovate the hotel...we'll be able to charge higher rates and uplift the asset in general." Despite some rooms possibly being out of service temporarily, there are no plans to close the hotel during the renovation period.

As this landmark hotel prepares for a makeover, the Back Bay hotel market itself is undergoing significant shifts. The sale occurs alongside movements like Northeastern University converting a Sheraton Hotel tower into dorms, effectively reducing the neighborhood's hotel room count. Nonetheless, Back Bay remains one of the city's more robust hotel submarkets, even as it recovers from the pandemic's impact, outpacing many others in terms of revenue per available room, according to industry metrics.