The W Hotel & Residences in Boston is under agreement to be purchased by Pebblebrook Hotel Trust for $89.5 million.

Under the agreement, the Bethesda, Md.-based hotel trust will continue to let an affiliate of Starwood Hotels and Resorts Worldwide Inc. operate the 235-room luxury hotel and its affiliated W Residences, according to a statement.

The W Hotel was recently in danger of possible foreclosure; in 2010 it filed for Chapter 11 bankruptcy, Banker & Tradesman previously reported. However, a U.S. Bankruptcy Court judge gave the green light in February for the continued sale and development of the property, effectively shutting down an effort by Prudential Insurance Co. to foreclose on its developer, SW Boston Hotel Venture LLC.

"We were not looking to sell, but Pebblebrook presented us with a compelling offer," said Carol Sawyer Parks, CEO of Sawyer Enterprises, a Boston-based owner and operator of real estate. "The price is clear evidence of the strong attributes of the ‘W’ brand, and by extension has a positive impact on the value of the ‘W’ Residences. Both the hotel and the residences will continue to be managed under the ‘W’ flag.   As for the hotel, it will be business as usual, with the hotel’s guests receiving the luxury amenities and services they have come to expect."

Parks added: "With the steady sales of the residences and the funds provided by the sale of the hotel, our timetable to pay off our indebtedness will be accelerated. We have 43 sales closed or under agreement, and sales activity continues to be strong. In addition, our bankruptcy reorganization plan will be filed later this week and we anticipate approval in June."