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enVision Hotel Boston-Everett
CBRE Hotels, as sole and exclusive agent for the owner, has been retained to offer for sale the boutique, fee-simple, 101-room enVision Hotel Boston-Everett. The independent enVision is currently leased to an operator, but can be delivered unencumbered of the lease, management, and any brand affiliation. Located on the Chelsea/Everett border, the enVision competes in the Logan Airport submarket but also benefits by its close proximity to Downtown Boston and Cambridge. The offering presents the opportunity to acquire a fully unencumbered well-located, boutique hotel in one of the country’s most durable gateway markets at pricing well below replacement cost. Further, today’s new development environment dictates minimal new supply in Boston for the foreseeable future.
In 2023 the Boston hotel market was the third-fastest recovering lodging market in the US, enjoying a 10.6% RevPAR improvement over 2022. New ownership will benefit from the increase in demand and market recovery tailwinds that continue to elevate both the broader Boston hotel market and the Chelsea / Everett submarket. Due to the recovering market and steady contract business, the enVision is producing robust revenue and strong in-place NOI.
The independent enVision is currently leased to an operator, but can be delivered unencumbered of the lease, management, and any brand affiliation. A new owner has the flexibility to keep the existing hotel operating structure in place, terminate the lease agreement (for $500,000), convert to a branded product or keep the hotel as an independent property.
Durable, Recovered Gateway Market with Diverse Base of Demand
Boston’s deep and diverse demand drivers, including corporate, group, education, healthcare, and leisure demand, make it one of the strongest and most durable lodging performance and investment markets in the world. On a relative basis, this spectrum of demand has allowed Boston to outpace other notable gateway markets on its recovery trajectory (105% RevPAR index of 2019 at year end 2023 for the Boston CBD / Airport market), further elevating Boston’s position as a world-class real estate investment market post-COVID. In 2023 the Boston hotel market was the third-fastest recovering lodging market in the US, enjoying a 10.6% RevPAR improvement over 2022.
| Rank | Market | % Change |
|---|---|---|
| 1 | New York | 53.2% |
| 2 | Washington DC | 50.7% |
| 3 | Boston | 46.4% |
| 4 | San Francisco | 45.7% |
| 5 | Seattle | 36.6% |
Declining Supply
New additions to supply currently face prohibitively high land, construction, and financing costs, among other barriers. Despite the addition of 140 new luxury rooms in downtown Boston in 2023 (Raffles), supply actually declined in the Boston market due to the conversion of a 428-room tower at the Sheraton Back Bay into student dorms for Northeastern University. CBRE anticipates that conversion of hotel inventory to student housing may take further supply out of inventory in coming years. CBRE Hotels Research predicts net supply growth in the Boston market to be 0.5% for 2025, 1.0% for 2026 and 1.0% for 2027.
Proximity to Logan International Airport
The enVision Hotel Boston Everett is located just 2.2 miles from Boston Logan International Airport, the primary airport for the New England region. Logan serviced over 40 million passengers in 2023 (or 96 percent of total 2019 passenger volume and 101 percent of international). The airport is currently undergoing a multi-year $2 billion modernization project to accommodate increasing airlift demand in and out of the region. Logan continues to outpace other major gateway airports in post-pandemic recovery of domestic and international airlift.
Domestic and International Airlift Recovery at Logan Outpaces Other Gateway Airports
Boston Logan International Airport, surrounded by Boston Harbor and just three miles from downtown Boston, has been a primary domestic and international gateway hub for air travel since 1923. Featuring six runways, four terminals (A, B, C, and E), and 106 gates, Boston services more than forty airlines flying nonstop to over 100 domestic and international destinations and welcomed 40 million passengers in 2023. Prior to the Covid-19 pandemic, Logan served more than 42 million total passengers annually, and while this level of passenger volume has yet to be re-achieved (96% in 2023), Logan has outpaced other notable gateways in its recovery trajectory, especially as it relates to international. As of year-end 2023, Boston Logan has achieved 101% of 2019 international passenger volumes, one of the first major gateway airports to report full post-covid international recovery.
Offered Below Replacement Cost
The Hotel is being offered well below replacement cost as current costs for land, entitlement processing, materials and labor would render this asset irreplaceable.
Upside Through Conversion to Branded Lodging Product
The Property is ideally positioned to benefit from a conversion to a branded lodging product. Brands not currently represented in the submarket might include the Tapestry Collection by Hilton, Delta by Marriott, Tempo by Hilton, AC Hotels by Marriott, Sonesta Select, Best Western Premier, Spark by Hilton, and possibly more.
Proximity to Encore Boston Harbor Casino
One of two Class 1 casinos in the state, Encore Boston Harbor continues to lead the way as the highest-grossing casino in Massachusetts. Only 1.5 miles from the enVision Hotel Boston-Everett, the development of the $2.9 billion casino and hotel has had a profound impact on Everett and surrounding communities. The 671-room casino features 200,000 square feet of 24/7 gaming space, a luxury spa, retail stores, and multiple food and beverage outlets that supports more than 3,000 jobs and generates more than $1 billion of new economic impact for the surrounding communities.
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