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Case Study: Courtyard Boston Marlborough |
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Marlborough, MA |
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History in the Market – Milton Fine and Interstate Hotels Corporation (IHC) developed, owned and operated the full service Worcester Marriott in Westborough, MA. This 243 room nine story Marriott was built in 1982 in downtown Worcester at 10 Lincoln Square in the heart of New England, just 48 miles from Boston. The hotel was extremely successful winning numerous awards to include Hotel of the Year and Sales Team of the Year for several consecutive years. With the success of the Worcester Marriott and strong reputation of the IHC management team, IHC was asked to replace Marriott Corporation as the management company for the Westborough Marriott in Westborough, MA. |
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This was the first time in history a third party franchisee was appointed as property manager to replace Marriott Corporation. Due to the success of the hotel and property appreciation, the Worcester Marriott was sold on May 10, 1995. In 1998 the management of the Westborough Marriott was also turned over to Wyndham Hotels as part of the IHC sale to Wyndham Hotels and Resorts. Later that same year, a subsidiary of FFC Capital acquired the 98 room limited service Courtyard Boston Westborough located in Westborough, Massachusetts. |
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The Courtyard Boston Westborough was built in 1997 to include a restaurant, lounge and meeting space. In 2003 and 2004, extensive interior renovations were completed with the Courtyard being the newest product in the market. The Courtyard has continued to generate strong operating results over the past nine years. |
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With a long-standing and profitable track record in the market as well as signs of growth in the weekend leisure and business traveler segments in 2004 and 2005, FFC Capital identified another opportunity in the surrounding area. On August 1, 2005, a subsidiary of FFC Capital acquired 90% interest in the Radisson Hotel in Marlborough, Massachusetts. |
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Opportunities |
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The 202 room hotel includes a restaurant, lounge, heated indoor swimming pool, fitness center and more than 7,000 square feet of flexible meeting and banquet space. The Courtyard is located at 75 Felton Street at the intersection of Route 20 and Interstate 495, six miles from the Courtyard Boston Westborough. The Courtyard’s location in the heart of New England’s high-tech corridor as well as proximity to many corporate offices in the Marlborough area and major sightseeing attractions of central New England, position the hotel to take advantage of the various demand segments generated by the market. Further penetration of the various demand segments is also expected in the future given the management and marketing style of the past owner and operator. Future growth in the area’s high tech sector is also expected given Intel Corporation’s September 2005 announcement to invest $155 million into the company’s manufacturing facility in Massachusetts resulting in the creation of more than 300 new manufacturing jobs in the area. |
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Performance |
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An $8.3 million comprehensive renovation to convert the hotel to a Courtyard by Marriott commenced in December 2005 and was completed in June 2006. The transformation involved extensive interior and exterior upgrades to all areas of the building including the guest rooms, corridors, lobby, lounge, restaurant, swimming pool and fitness room. |
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