Hilton’s first hotel in Boston — purchased by Conrad Hilton in 1954 — is joining the brand family once again following Parks Hospitality Holdings' purchase of the Boston Park Plaza for $370 million.
The Mexico City-based Parks Hospitality Holdings purchased the 1,060-room historic hotel from real estate investment trust Sunstone Hotel Investors, which acquired it in 2013 for $250 million, according to CoStar data. Hilton now manages the hotel and it is rebranded as the Hilton Boston Park Plaza.
According to Sunstone, the sale price represents a 12.1-times multiple on hotel adjusted earnings before interest, taxes, depreciation and amortization for real estate, and a 7.1% cap rate on net operating income for the four quarters ending June 30.
"Acquiring the celebrated Boston Park Plaza is a significant milestone for Parks Hospitality Holdings," said Parks Hospitality Holdings CEO Charles El-Mann Fasja in a statement. "This addition to our irreplaceable hotel real estate portfolio marks a new era of expansion for PHH, bringing our expertise in hospitality development and investment from Mexico to locations across the U.S."
Parks Hospitality Holdings develops hotels, commercial and industrial properties and offices. The company’s hotel portfolio includes more than 11,000 rooms, all in Mexico. Many are Hilton-branded, including the Hilton Mexico City Reforma, the Hilton Mexico City Santa Fe, the Hilton Tulum Riviera Maya, the Conrad Tulum Riviera Maya and the Waldorf Astoria Cancun.
In 2018, the company invested in the repositioning of the Hotel Talisa in Vail, Colorado — part of Marriott International’s Luxury Collection — to the Grand Hyatt Vail.
The Hilton Boston Park Plaza originally opened in 1927 as The Statler Hotel. Today, it has 70,000 square feet of meeting space and two restaurants.
Sunstone’s latest acquisitions include the Hilton San Diego Bayfront and the Confidante Miami Beach. It is converting the Confidante into the Andaz Miami Beach. In 2022, Sunstone sold the Hilton Garden Inn Chicago Downtown, the Embassy Suites by Hilton Chicago Downtown and the Hyatt Centric Chicago Magnificent Mile.