W Hotel Boston owner files for bankruptcy protection
By Greg Turner | Thursday, April 29, 2010 | http://www.bostonherald.com | Real Estate
The developer of the W Hotel & Residences in Boston has turned to bankruptcy court to help relieve its debt burden.
SW Boston Hotel Venture LLC yesterday filed for Chapter 11 bankruptcy protection, listing liabilities of between $100 million and $500 million. The firm, owned by Boston-based Sawyer Enterprises, indicated it needs to buy time to rework its debt.
“Sawyer Enterprises’ goal is to restructure its existing debt and pay its creditors in full, and to continue to operate this project for the long term,” the company said in a statement. “Chapter 11 provides the breathing room to do so.”
Since opening in October, the 28-story W Hotel has had more success in booking its 235 rooms than selling the 123 luxury condominiums on the higher floors of the 28-story Stuart Street tower.
The developer said in its statement that 30 percent of the W Boston Residences, or about 37 condos, have been sold or are under agreement. A check of the Suffolk Registry of Deeds’ online database yesterday turned up 11 sales.
Recent sales ranged in price from $350,000 for a studio to nearly $2 million for a three-bedroom condo.
Boston handed out a $10.5 million loan in July to help the developer complete construction of the $243 million project. The city’s Department of Neighborhood Development said in a statement that the loan “remains secured by the hotel and condo complex, cash collateral and numerous other properties owned by Sawyer.”
The company said it will remain in charge of all operations and that the planned June opening of the Bliss Spa is still expected.
“This (bankruptcy filing) will have no impact on the operation of the W Hotel or the (200-plus) employees of the W hotel, which has been close to full occupancy in April, or affect the ongoing condominium sales,” the company said.
The venture’s largest creditor is Bovis Lend Lease, a construction management firm owed nearly $700,000.
Article URL: http://www.bostonherald.com/business/real_estate/view.bg?articleid=1250970
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