WPI makes controversial purchase of two Worcester hotels official, buys properties for combined $46M

Two hotel buildings from a bird's eye view

Image | Courtesy of Google Earth Two Worcester hotels, the Hampton Inn & Suites at 65 Prescott St. (left) and the Courtyard by Marriott at 72 Grove St., are at the center of a controversy between Worcester political and business leaders and the city's largest university.

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By Eric Casey

The blowback against Worcester Polytechnic Institute from some of Worcester’s top political and business leaders has failed to dissuade the city’s largest higher educational institution from following through with its purchase of two Gateway Park hotels, as WPI has bought the two properties for a combined $46 million.

WPI purchased 72 Grove St., the site of the Courtyard Worcester hotel operated by Marriott, for $25.6 million and 65 Prescott St., the site of the Hampton Inn & Suites Worcester, for $20.4 million. Both deals were finalized on Friday, according to Worcester District Registry of Deeds records.

Both properties were purchased from BREIT Mass Property Owner LLC, a Chicago-based entity operated by Blackstone, a prominent asset management firm based in New York City. Blackstone purchased both properties in October 2017 for a combined $29.76 million, according to City of Worcester property records.

WPI plans to purchase the two hotels and slowly convert them to student housing over the course of several years received a rare public rebuke from the Worcester Economic Development Coordinating Council, a behind-the-scenes organization made up of government and business officials, and raised questions among some Worcester nonprofit and activist figures over what voices are included in major planning and development discussions in the city.

Two hotel buildings side-by-side with a parking lot in front

Photo | Eric Casey

Worcester Polytechnic Institute is moving forward with plans to convert two hotels into student housing.

“We were collectively stunned to learn that WPI has been exploring for many months the possibility of acquiring the two hotels in Gateway Park for student housing,” read the original EDCC letter made public on Aug. 16, “The subject of acquiring these sites was never mentioned in our numerous meetings or briefings with you or your leadership team.”

Both hotels will continue to operate at their current capacity until 2026, at which point the 100-room Hampton Inn will be converted to student housing; WPI expects the 134-room Courtyard Worcester to operate as a hotel through at least 2030, according to an Aug. 26 public letter from WPI officials.

The organized campaign against the purchase has continued since the EDCC’s original letter, with Worcester Regional Chamber of Commerce President and CEO Timothy Murray sending a letter to the Massachusetts Executive Office of Economic Development and MassDevelopment, questioning the latter’s decision to award the project financing, according to the Worcester Telegram & Gazette.

A man in a black suit and red and white striped tie with crossed arms

Photo I Courtesy of the Worcester Regional Chamber of Commerce

Timothy Murray, CEO of the Worcester Regional Chamber of Commerce

“WPI President Grace Wang and Executive Vice President Michael Horan made the decision to go forward acquiring these two hotels without consultation of the city manager, mayor, business community, partners, neighbors, or the WPI community," Murray told WBJ. "In doing so, they've undermined the intent and purpose of Gateway Park, for which tens of millions of dollars was invested with the intention to create a mixed-use district that creates jobs and expands the tax base. Instead, WPI’s decision will take millions of dollars out of the city's budget for needed services, raise taxes on businesses and homeowners, eliminate approximately 100 sector jobs, and further exacerbate Worcester’s hotel room shortage, negatively impacting some of Worcester's largest private sector employers.”

WPI officials say the purchase will lead to more rental housing being available for families and others seeking affordable housing.

Photo | Courtesy of Worcester Polytechnic Institute

WPI Executive Vice President and Chief Financial Officer Michael Horan

"We believe the decision to acquire the hotels benefits both WPI and Worcester, and we will continue to have open communication with the City to ensure this purchase provides collective benefits and meets shared goals," a Monday letter addressed to the WPI community from WPI Executive Vice President & CFO and Senior Vice President for Student Affairs Philip Clay reads, "These properties will provide much needed high-quality affordable housing options for our growing student population, ensuring a safe, accessible, and well-maintained environment that supports academic success. In addition, by opening more campus-run housing for students, more rental properties in Worcester will be available to families and others seeking affordable housing, alleviating some pressure on the local housing market. The purchase of these hotels will also contribute to Worcester’s economic vibrancy."

Worcester City Councilor Candy Mero-Carlson has also asked for details on the ramifications of the purchase on the city’s travel and tourism efforts and if there’s any conditions to allow the City to tax a property owned by a university. Mero-Carlson called for the City to consider any potential legal avenues it had to push back against WPI’s plans.

Combined, 72 Grove St. and 65 Prescott St. were given a tax assessment value of $25.19 million in 2024, according to City of Worcester property records.

Eric Casey is a staff writer at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.

EDITOR'S NOTE: This article has been updated to include a quote from Worcester Regional Chamber of Commerce President and CEO Timothy Murray and a quote from a message sent by Worcester Polytechnic Institute officials to community members.