Hersha Hospitality Trust agreed to acquire the 80-room Bulfinch Hotel in downtown Boston’s West End neighborhood for $18.2 million.

"We are pleased to capitalize on the opportunity to enhance our foothold in one of the highest barrier to entry lodging markets in the country at a price well below replacement cost," said Jay H. Shah, Hersha CEO.

"The acquisition of the Bulfinch Hotel is our first in the Boston Central Business District. This is a core market for Hersha that is expected to be one of the best performing markets in the country for the next few years," Hersha said. "We expect to improve the asset’s operating margins as we take advantage of opportunities to reposition this hotel."

Hersha plans to invest approximately $2.5 million in the hotel to upgrade guest rooms, improve the food and beverage platform, fitness and business amenities, while adding an additional room.