Saunders Hotel Group   Boston Massachusetts

About This Sponsor

As a fourth generation family owned and operated hotel management business, our daily life and mission is rooted in our people and our communities, both local and international. Every action we take thoughtfully considers value creation for our investors, outstanding service to our guests, and job satisfaction for our team members. For us this means best in class in customer service, best in class in employee recruitment, training, and retention, and ultimately best in class in financial performance. We believe in our mission and stand by our track record, reasons why we have an equity interest in every hotel we manage. 

  • Geographic Regions: Northeast, Mid-Atlantic
  • Risk Profiles: Opportunistic (12-20%), Development (25%+)
  • Property Types Hotel
  • Total Transactions $408,725,000
  • Total Keys 2,608

Company Overview

As a fourth generation hospitality operator, Saunders Hotel Group’s (SHG) daily life is rooted in our people and our communities. It starts and finishes with our culture of excellence. 

SHG has become known for its acquisition, turnaround, and long-term, hands-on management. For four generations, the organization has broadened its reach with the development and revitalization of full-service, luxurious, independent hotels, generally considered the most challenging type to operate with notable achievements including: 

The 1976-1996 turnaround of the former Statler Hilton, which Hilton Hotels had closed, unable to make it profitable. The property was then re-branded as the Boston Park Plaza, garnering world renown recognition and was subsequently sold in 1996;

The management acquisition of the Copley Square Hotel starting in 1947, and the repositioning of “the original boutique hotel”, the Lenox Hotel, since1963;

The design and entitlement of the first new hotel to be built in Boston following 9/11, the Jury’s Boston Hotel. Now known as the Loews Boston Hotel, this asset was conceived by the principals of the General Partner in 2000. This project followed an intensive RFP process with the City of Boston; working closely with the Boston Redevelopment Authority and the Department of Neighborhood Development as well as the Mayor’s Office and involved the adaptive re-use of the former/original Boston Police Headquarters building;

The Comfort Inn & Suites Logan Airport was a $15 million ground-up high rise development project completed by SHG in 2000 and the first new airport hotel developed in Boston in 20 years. The project required navigation through a complex series of special permits and zoning variances. In addition, the site required environmental remediation.  The hotel was originally constructed with sustainable initiatives, and since that time has undergone extensive renovations with even more of a focus on innovative environmental solutions for hotels;

More recently, in 2011, the SHG led the acquisition of the John Hancock Hotel & Conference Center to reposition into a multimillion dollar mixed-use high-rise development. Since acquiring the breakeven operation managed by Aramark, SHG’s experience and expertise had an immediate impact as indicated by the property’s 2013 net operating income (NOI), surplus cash flow of $800,000, surpassing the breakeven NOI during Aramark’s tenure. The Sponsors have been responsible in leading the entitlement process to redevelop the building into a mixed-use high-rise, comprising a five-star hotel and over one hundred residential condominiums. 

The strategy, economics, strong City ties, and most importantly vision with which the Sponsors have successfully utilized over the last several decades have earned them a reputation as quality owners, and operators with an expertise and successful record at taking underutilized or abandoned property, and carefully restoring and placing them back into productive and profitable uses.

Acquisition Criteria

Saunders Hotel Group (SHG) seeks to be a cash flow buyer with an emphasis on hospitality assets that generate immediate cash-on-cash returns.Geographically focused in the Northeast, SHG targets hotel properties that can be repositioned and where their operational expertise can be a value add. SHG generally seeks a loan to cost value from 65%-75%.

Portfolio

Number of Properties 3
Total Rooms 300
Total Capitalization $13.1 Million
Total Revenue $3.5 Million
Estimated Annual NOI $685,823
Major Tenants in Portfolio Solas, City Table, City Bar, Lindt Chocolate, Margarita's

Case Studies

Comfort Inn & Suites Logan Airport

The Comfort Inn & Suites Logan Airport was a $15 million ground-up high rise development project completed by SHG in 2000 and the first new airport hotel developed in Boston in 20 years. The project required navigation through a complex series of special permits and zoning variances. In addition, the site required environmental remediation.  The hotel was originally constructed with sustainable initiatives, and since that time has undergone extensive renovations with even more of a focus on innovative environmental solutions for hotels.


Lenox Hotel

Since acquiring the hotel in 1963, SHG has funded and overseen a series of restorations, earning worldwide recognition for its fusion of historic preservation, eco-initiatives and design. Its recent $50 million renovation of The Lenox Hotel spanned nearly a decade and touches every one of the 214 guest rooms and suites and building’s façade. The company’s unwavering commitment to total guest comfort, eco innovation and a strong sense of civic responsibility characterize the Saunders family’s management approach, an ideology that led to an industry-first environmental program and its recognized positioning as a global pioneer in luxury, urban ecotourism.


Boston Common Hotel & Conference Center

In 2011, the SHG led the acquisition of the John Hancock Hotel & Conference Center to reposition into a multimillion dollar mixed-use high-rise development. Since acquiring the breakeven operation managed by Aramark, SHG’s experience and expertise had an immediate impact as indicated by the property’s 2013 net operating income (NOI), surplus cash flow of $800,000, surpassing the breakeven NOI during Aramark’s tenure. The Sponsors have been responsible in leading the entitlement process to redevelop the building into a mixed-use high-rise, comprising a five-star hotel and over one hundred residential condominiums.


Executive Team

Gary Saunders
Chairman

With his brother Jeffrey, Gary forms the 3rd generation of Saunders’ family leadership in Hotel investment and management. Along with Jeffery, he leads responsibility for operations, asset management, and finance for all Saunders Hotel assets. Active in the Hotel industry since 1977 including 8 years as Managing Director of the Boston Park Plaza Hotel and 11 as General Manager of the Lenox Hotel. Previously 5-term Chairman of the Back Bay Association, Co-Chairman of the Boston Groundwater Trust, and a former Director & Executive Committee Member of the National Conference for Community & Justice.


Jeffrey Saunders
President & CEO

Jeffrey shares lead responsibility for operations, asset management, and finance for all Saunders Hotel assets with Gary Saunders. Active in the Hotel industry since 1979, including 10 years each as General Manager of the Copley Square Hotel and Managing Director of the Lenox Hotel. Twice elected President/Chairman of the Massachusetts Lodging Association and sits on the Board of the Greater Boston Convention and Visitors Bureau. He was a delegate to the White House Conference on Travel and Tourism and is a long-time and active member of the Board of Advisors at the School of Hospitality at Boston University.


Daniel G. Donahue
VP & Managing Director

Dan is responsible for overseeing all aspects of the Group’s hotel operations. He began his career with the T.G.I. Fridays Group. Subsequently, he joined Starwood Hotels in 1995, where he held senior managerial roles with Washington area Hotels. Following Washington, DC, Dan worked for the Jurys Doyle Hotel Group prior to joining SHG. Each of the Hotels that Dan oversaw ranked in the top 5 on Trip Advisor. Donahue is currently VP of the Massachusetts Lodging Association and VP of the Skal Club of Boston. In addition, he is passionate about giving back to the community and serves as a member of the Board of Directors of the Elliott Memorial School, a Board Trustee for Newbury College and President of Friends of Copley Square. Dan was recently named the 2014 General Manager of the Year for Massachusetts and in 2015, was awarded the distinct national honor by the AHLA as GM of the Year.


Alexander J. Saunders
VP Planning & Development

Alex joined Saunders Hotel Group in 2013 and currently represents the 4th generation of this family owned and operated company. As VP of Planning and Development and having been General Manager of three SHG properties over the last three years, Alex plays various roles in both existing operations as well as current and future projects in SHG’s pipeline. Prior to joining SHG, Alex was an Operations Manager with HEI Hotels & Resorts in Indianapolis, Manhattan, Dallas and Washington, DC and was part of Denihan Hospitality Group’s Acquisition and Development team in New York City. He gained valuable experience early in his career in the food and beverage arena, spanning the roles of line level cook, busser, waiter and manager. He is passionate about the future of the industry and the city of Boston, actively involved in the community as well as serving on AHLA’s National Gateway Council, acting Chair of the Massachusetts Lodging Association’s Young Professional Group and holds a seat on the Citi Performing Arts Center Steering Committee.

Press

Beacon Hill Hotel and Bistro Joins Saunders Family

December 24, 2015 Beacon Hill Times

Peter and Cecilia Rait, owners of the Beacon Hill Hotel and Bistro, are scheduled to sell the Charles Street business and building to the Saunders Hotel Group at noon today, December 22.... read more

Get Occasional Investing Tips From Industry Insiders
Acquire always respects your privacy

 

Disclaimer
Acquirerealestate.com is a website operated by Acquire Real Estate, LLC (Acquire Real Estate) and by accessing the website and any pages thereof, you agree to be bound by its Privacy Policy and Terms of Service. Acquirerealestate.com is intended for accredited investors only who are members of Acquire Real Estate and familiar with and willing to accept the risks associated with private investments. Investments posted on this website are membership interests and are not publicly traded, are subject to holding periods and are intended for investors who do not have a need for a liquid investment.

Any financial projections or returns shown on the website are illustrative examples only, and there can be no assurance that any valuations provided are accurate or in agreement with market or industry valuations. Any investment information contained herein has been secured from sources Acquire Real Estate believes are reliable, but we make no representations or warranties as to the accuracy of such information and accept no liability therefor. Acquire Real Estate does not endorse or promote any of the opportunities that appear on this website nor make any recommendations regarding the same to any Investor. Direct and indirect purchase of real property involves significant risk and investments may lose value and are not insured by the FDIC or by any other Federal Governmental Agency nor are they guaranteed by Acquire Real Estate. Investors must be able to afford to lose their entire investment.