Discretionary hospitality fund Electra America Hospitality Group has acquired the 225-room Loews Boston Hotel from Loews Corp. for $116.6 million.
In a news release, EAHG said it plans to convert the upper-upscale hotel in the Back Bay neighborhood into Hotel AKA Back Bay, debuting the luxury long-stay AKA brand in Boston.
“This was an excellent opportunity to acquire a well-maintained, upper-upscale hotel in the capital of New England, where several prestigious academic institutions, iconic cultural destinations, and the nation’s largest life science/biotech cluster are generating strong demand,” EAHG CEO Russ Urban said in the release. “While Boston’s hotel recovery has trailed some markets, it’s poised for a strong rebound once business and group travel returns in earnest.”
AKA CEO Larry Korman said in the release his company remains dedicated to developing the AKA brand in the most culturally significant destinations in the U.S.
“Boston has long been a city of interest, and we are delighted to introduce the bespoke AKA experience to Boston’s discerning visitors,” he said. “Rich with history, bustling with business and educational institutions, as well as architecture and design reminiscent of an English city, Boston is a gateway into New England for the brand.”
EAHG, a $725 million fund that’s part of real estate private equity firm Electra America, has acquired six hotels in the last 18 months. The AKA brand has also made its debut in Miami and West Palm Beach while expanding in Manhattan and Washington, D.C.
The 73,350 square-foot stone and masonry hotel was built in 1925 as the headquarters of the Boston Police Department, housing the department until 1990.
The new owners believe the hotel will attract business travelers visiting Boston for the city’s technology, start-up and life sciences companies that have grown due to the number of higher education institutions and their talents.
They plan to invest $20 million in design upgrades and renovations while keeping the hotel open. Its 222 guestrooms, two suites and penthouse suite will undergo soft design updates as well. The lobby will feature a library with a seating area for morning coffee, afternoon tea and evening cocktails with live music.
The hotel’s public spaces will also receive updates including its restaurant and bar, Precinct Kitchen+Bar. A new private dining room will be available for meetings and celebrations.
The renovation will also enhance the large second-floor fitness center, tranquil spa, theater and reimagined rooftop.