BOSTON The developers picked to build a $270 million hotel as part of the South Boston convention complex have been unable to obtain financing in advance of next Tuesdays deadline, according to an official monitoring the project.
Dean Stratouly, development chairman of the Massachusetts Convention Center Authority, said another month or two might be needed.
“Everything is close but not quite there,” he said. “We are discussing ways to help them over the financial hurdles.”
A joint venture of Starwood Hotels & Resorts Worldwide Inc. and Carpenter & Co. faces a Tuesday deadline for obtaining financing and putting down a $14 million nonrefundable deposit. The developers posted a $1 million deposit in June.
With interest rates rising and hotels out of favor with investors, the
capital markets have become more demanding since Starwood-Carpenter
formulated its proposal last year, according to Stratouly. “The investment communities require certain thresholds be met before they
put money up,” he said. “This project is right on the fringe.”
The opening of the 1,120-room hotel at the same time as the convention
center in late 2003 is deemed essential to the success of the convention hall. (9/21/00)
SOURCE: The Boston Globe