Oxford Capital affiliate, Oxford Hotels and Resorts, LLC, will manage the 242-room property opening January 2016
(BOSTON, MA; December 15, 2015) – A joint venture between Oxford Capital Group, LLC and an affiliate of Walton Street Capital, L.L.C (“Walton Street”) today announces the sale lease/management back to Germany’s Union Investment Real Estate of The Godfrey Hotel Boston. The Godfrey Hotel Boston is a 242-room hotel strategically located in the city’s Downtown Crossing neighborhood scheduled to open in January 2016.
The hotel is situated in the heart of Boston’s business district and benefits from its central location in the immediate vicinity of the theatre district and the sea port. Downtown Boston/Downtown Crossing is currently experiencing a strong revival, as reflected in the many new developments and refurbishments of office buildings, apartments and retail properties. Not only is The Godfrey the newest hotel in Boston, it is also currently the only boutique hotel in this submarket. Positioned as the most technologically advanced hotel in Boston, The Godfrey offers its guests and visitors a range of facilities including its own coffee shop, a fitness center, restaurant, and executive boardroom.
“We are delighted to have reached this agreement with Union Investment for The Godfrey Boston to be its first foray into the United States’ hotel market. We are confident in the future success of The Godfrey Hotel Boston and that the property, brand, and management platform will benefit from the transaction,” said John W. Rutledge, founder, president and CEO of Oxford Capital Group, LLC and its wholly owned affiliate Oxford Hotels & Resorts, LLC, the Chicago-based investor, developer, and manager. “After thoroughly vetting a large number of interested investors and suitors, we chose Union Investment for a variety of reasons, including their commitment to a highly professional transaction process, the scale and quality of their organization and people, and its competitive pricing. And as always, we’re looking for win-win relationships with our investors.”
The Godfrey Hotel Boston is let on a 25-year lease covering 100% of the total rental area of 135,000 square feet based on an annual Fixed Rent. An additional Profit Share component documents the spirit of aligned interests between Oxford Capital, Walton Street Capital, and Union Investment. With the Godfrey Hotel Boston agreement, Union Investment strategically expands its open-ended real estate funds’ EUR 2.5 billion hotel portfolio to include the US. The purchase price is around USD 180 million. The Godfrey Boston hotel joins the portfolio of the UniImmo: Europa open-ended real estate fund.
“The international growth of our hotel investment activities is based on a clear strategy of expanding our hotel portfolio and diversifying even further across all asset classes,” said Andreas Löcher, head of Investment Management Hotels at Union Investment Real Estate GmbH, Hamburg. “Our long-standing presence in the US office market and our strong commitment, both in metropolitan areas and in gateway cities, is successfully opening doors and enabling us to tap into attractive hotel markets in North America.”