Yotel begins construction in South Boston after lawsuit dismissed

South Boston may finally be getting its first Yotel in 2017 after a state court dismissed a lawsuit seeking to block construction in the waterfront district. 

The 326-room hotel, part of the Seaport Square project being developed by John B. Hynes III, will have rooms as small as 176 square feet, about half the size of a standard room. Yotel first said it would come to Boston last year, but delayed scheduling an opening until a lawsuit filed in Suffolk Superior Court against Hynes’ company, Boston Global Investors, was resolved.

The owner of the adjacent property, Waltham developer Crosspoint Associates, said in the suit that construction would have interfered with an easement it holds on the Hynes property. The initial lawsuit was dismissed in November and dismissed again on appeal last month.

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Boston is one of four US locations — the others are San Francisco, Miami, and Brooklyn — where Yotel plans to launch hotels over the next two years. Construction of the 11-story Boston Yotel is expected to begin next month.