Business & Tech

Group purchases Taj Boston hotel for $125 million

The Taj Boston.
GLOBE STAFF/FILE
The Taj Boston.

A group led by mall mogul Steve Karp closed on its purchase of the Taj Boston hotel Tuesday, for $125 million.

Karp and his partners are buying the elegant-but-faded five-star hotel overlooking the Public Garden from Indian Hotels Co., but will retain the Taj flag and management under a long-term agreement. Indian Hotels had said keeping the 273-room hotel branded as a Taj was a condition of the sale.

Karp’s New England Development has said little about plans for the property, which they’re purchasing with Woburn-based developer Eastern Real Estate, Boston investment firm Rockpoint Group, and two other partners, since confirming their deal to buy it in late May.

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But in a statement Tuesday, Karp said they intend to “make improvements to this legendary hotel so it becomes the focal point of Boston’s cultural activities.”

Tim Logan can be reached at tim.logan@globe.com. Follow him on Twitter at @bytimlogan.