Another hotel is in trouble
. The developer behind the 28-story W Boston Hotel and Residence
s in downtown Boston has filed for bankruptcy protection. The Boston Globe reports
that documents filed in US Bankruptcy Court in Boston by SW Boston Hotel Venture LLC, a subsidiary of Sawyer Enterprises, show liabilities of $100 million to $500 million. The City of Boston itself gave the developer a $10.5 million loan a few months back to help it finish building the $234 million project. The complex opened in October, not exactly a perfect time in the struggling condo real estate market. Only around 10 percent of the building's 122 condominiums have been sold. The Globe reports that W units have sold for as much as $1.9 million for a three-bedroom and $345,000 for a studio.
The W Hotel has 235 hotel rooms on its first 15 floors with rooms that cost more than $300 a night. Hote occupancy rates are still down in Boston because of diminshed tourism. As is usually the case in these situations, the hotel operations are not affected by the filing.