Waterfront project signs hotel chain

Fairmont stepping in at Battery Wharf location

A premier global hotel chain, Fairmont Hotels & Resorts, has signed on to manage a 150-room hotel at the Battery Wharf development on Boston's waterfront, delivering a critical boost to the $300 million project following the departure of a previous hotel operator.

Fairmont's arrival provides a signature name to the project as well as the promise of delivering the high-end concierge services the developers used to market the complex's multimillion-dollar condos to buyers.

The company replaces Regent Hotels & Resorts, which left the project after a falling out with the developers. Regent's departure left the project without a luxury name needed to pitch its package of amenities to ultra-rich condo buyers. About 62 units were sold or under agreement when Regent departed, and the numbers remain about the same today, executives said.

But the Fairmont deal is a shot of good news for the project and for the city as tremendous turmoil in financial markets threatens to undermine projects from the Back Bay to the South Boston Waterfront. Tourism and real estate professionals said Fairmont's involvement will erase concerns that Battery Wharf lost its cachet after Regent's unceremonious exit.

"The most difficult part of this project was the uncertainty in this type of market," said Debra Taylor Blair, president of Listing Information Network Inc. "The fact that this brand is going in there will clear the air of future what-ifs."

Regent left abruptly in June because of "philosophical differences" that arose with Battery Wharf's developers, according to a statement issued by the parties.

Mayor Thomas M. Menino welcomed Fairmont's arrival yesterday, calling the hotel a critical link in the ongoing development of the waterfront in the North End. "They've had so many false starts on the hotel flag, so it's a positive sign that Fairmont is making the decision to locate there," he said.

An executive involved in the development said Regent's departure delayed the planned fall opening of the hotel by a few months. The hotel, to be called Fairmont Battery Wharf, is now expected to open in December.

"In the long run, it will be well worth the wait," said Kevin McCarthy, president of PNC Realty Investors, which is the trustee of an AFL-CIO pension fund invested in the project. "Fairmont is a world-class operator of luxury hotels."

McCarthy said about half of Battery Wharf's 105 condos have been sold or are under agreement. The condos are priced between $1 million and $4 million.

Fairmont is owned by Fairmont Raffles Hotels International, which operates 91 hotels worldwide and is proceeding with plans to develop 25 new locations from Morocco to Shanghai. The company also operates the Fairmont Copley Hotel in Boston's Back Bay as well as The Plaza in New York City.

Paul S. Tormey, regional vice president for Fairmont, said the company quickly became interested in Battery Wharf after Regent left. "The views are spectacular, it has easy access to the airport, and it's within walking distance of the financial district," he said. "It checks all the boxes for us."

The hotel at Battery Wharf will be spread among three buildings and will include a lounge with harbor views and 6,000 square feet of meeting space. It will also feature a restaurant designed in consultation with three-star Michelin chef Guy Martin.

Hotel rooms will feature a large work area, marble baths, and high-end audio and television systems.

Battery Wharf still faces controversy. Last week, the property's original developer, Harold Theran, filed a lawsuit in federal court alleging the project's main lender, the AFL-CIO pension trust, charged him "usurious" interest rates in a scheme to wipe out his equity and take control of the project. The lender used the terms of the loan to remove Theran as developer and make him a consultant instead. That arrangement ended in June.

McCarthy, the AFL-CIO fund representative, said the legal battle will not cause further delays for Battery Wharf. "The dispute will have no bearing on the success of this project," he said.

Casey Ross can be reached at cross@globe.com.