Turn to page B1 for Banker & Tradesman’s monthly coverage of all things commercial real estate.
ANNIVERSAR Y RR EE AA LL BY THE NUMBERS
PAGE 6
NM F OA RT M EESST TA A T TE E& &F I FN IANNACNI CA IL A IL N F OI R I OANT SI I ONNC ES I1 N8 C 7 2E
County close-up: Wrentham Spotlight: Norfolk
1 8 7 2
MAHA Executive Director Symone Crawford says Massachusetts should live by the words “you can’t continue to do things the same way and expect a different result” as it tries to close its yawning racial homeownership and wealth gaps.
IN PERSON
PAGE 8
WEEK OF MONDAY, MAY 30, 2022
COMMERCIAL REAL ESTATE BY THE NUMBERS
Mid-market offerings and sites with built-in demand are expected to be calling cards of the next set of local urban lodging projects.
L E A P O F FA I T H
175
OWNERS RIDE OUT
The number of rooms in a proposed Brighton hotel. See Steve Adams’ story on this page. Source: NB Development
$2 million
HOTEL DOWNTURN
The per-room for luxury hotel development costs in cities like Boston. See Steve Adams’ story on this page. Source: CMHWarnick
$192 The average daily rate for Boston hotels. See Steve Adams’ story on this page. Source: Pinnacle Advisory Group
FOR FUTURE GAINS
158,000 square feet The total size of lease commitments to Winthrop Center. See Hot Property on page 12. Source: Millennium Partners
44 percent Hotel revenues per available room were 44 percent of pre-pandemic levels in 2021. See Steve Adams’ story on this page. Source: Pinnacle Advisory Group
Developments Bet on Scaled-Down Formats
1,054
all it a contrarian bet or taking the long-term investment approach, but some developers are picking hotels as the best option for properties in Boston after the local travel industry was battered for two years. The evolution of hotels – favoring limited-service formats, smaller staffs and lower operating costs – accelerated during the pandemic and points to a potential
The number of rooms at the Omni Boston Hotel at the Seaport. See Carley Thornell’s story on page B1. Source: BPDA
$7.9 million City Realty paid $7.9 million for the site of a planned hotel last year. See Steve Adams’ story on this page. Source: The Warren Group
691 The planned height, in feet, of the Winthrop Center tower. See Hot Property on page 12. Source: BPDA
Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www.thewarrengroup.com/business/ datasolutions.
BY STEVE ADAMS BANKER & TRADESMAN STAFF
C
profitable business model for properties targeting openings in 2024 and beyond. Adaptive reuse of existing buildings as hotels is likely to become more common, as developers seek to save on costs of acquisition and new construction. “The budget and select-service model are easier to pencil from a development standpoint,” said Jim Luchars, chief investment officer for hotel owner and operator Stonebridge Cos. “Those will get built before your high-end, full-service properties.” Boston and Cambridge hotels suffered some of the nation’s worst financial performances during the first two years of the COVID-19 pandemic, according to Pinnacle Advisory Group research. In 2021, revenues per available room amounted to
just 44 percent of pre-pandemic levels, as leisure travel returned but business and group bookings sat on the sidelines. Value-oriented brands such as Hampton Inn and Courtyard by Marriott will lead the new development pipeline, Luchars predicted, while luxury downtown and convention-driven hotels will be the last.
Some Switch to More Stable Sectors
The downturn brought a screeching halt to early-stage development plans for new hotels in Boston’s Seaport District, Back Bay, Leather District, South End and Quincy. Continued on Page 7
COMMERCIAL INTERESTS
ARMING FOR A STRUGGLE
Neither Side Recognizes Fraught Nature of the Issue
Banks Compete to Offer Lowest Rates on Home Loans
By Scott Van Voorhis | Banker & Tradesman Columnist
By Diane McLaughlin | Banker & Tradesman Staff
Boston Rent Control Debate Local Lenders Confront Needs Dose of Reality Challenging Mortgage Market
Commercial Real Estate PAGE 3
Banking & Lending PAGE 9