An Irish company already operating and remodeling highway service plazas in the Northeast has been picked to run nearly 20 sites in Massachusetts. Their proposals include big changes for stops on the Mass Pike.
Applegreen, already operating/remodeling 27 sites in New York and another 23 in Connecticut, was recently picked to take over plazas across the Commonwealth in 2026 and beyond.
Following a review of bids, MassDOT committee and its board of directors opted for the Blackstone-backed international company and its bid to make $750 million in capital investments as part of a 35-year lease agreement, with a ten-year extension option.
“They have their plans ready to submit to us, which is their architecture and engineering plan, their site plans and revitalization plans, and they're proposing to begin right on Jan. 1, 2026,” said MassDOT Chief Development Officer Scott Bosworth during the June Board of Directors meeting. “With our permission, they will not close two consecutive plazas at any time. They will keep bathrooms and fuel services available at closed facilities, as well.”
Presenting to the Board of Directors on June 18, Bosworth highlighted how the state has been looking to make dramatic improvements at multiple service plazas – a number of which, he says, do not meet MassDOT's maintenance standards.
Under plans put forward by Applegreen, many plazas will either be rebuilt or refurbished. On the Mass Pike in Western Mass., the eastbound Lee and Ludlow service areas would be rebuilt, while their westbound counterparts and both Blandford stops would be refurbished.
A sizable portion of future revenues will be shared with the state over the course of the contract, Bosworth adds.
“… but it is estimated - depending on the sales and some of the previous numbers that I threw out as far as the expectations - that we will be paid somewhere between $623-$994 million, based on our partner KPMG’s analysis,” Bosworth said of the revenue generated over the span of the deal. “We do expect, and we've been led to believe, that these numbers will be higher than that, but time will tell.”
The board approved the lease and concession agreement at its meeting, though not before a lengthy public comment section – one featuring a number of employees and associates of the Waltham, Mass.-based Global Partners.
The company, which already operates four plazas on the other side of the state, according to the Boston Globe, was one of several parties to bid on the contract that runs through 2060. The Globe also reports that the four plazas GP operates fall under the 18 Applegreen would be taking over - switching to the Irish firm in 2027.
GP's bid featured $650 million in capital improvement spending while offering as much as $1.5 billion in “guaranteed rent.” Speaking during the June 18 MassDOT meeting, GP’s Chief Operating Officer Mark Romaine and others made the case for having a local vendor run the state’s plazas instead of an international company.
Romaine also highlighted struggles regarding Applegreen’s New York service plaza overhaul.
“MassDOT Chief Development Officer Scott Bosworth cited Apple Green's New York Thruway project as evidence of their real-world experience and state-of-the-art revitalization programs… but that very project resulted in a $260 million cost overrun, 58 percent - so severe that their contractors requested a taxpayer funded bailout,” he said.
According to The Buffalo News and WXXI, the 2023 appeal was ultimately rebuffed, with a construction contractor claiming supply-chain issues and price escalations led to the request.
Bosworth also explained that while potential revenues factored into the committee’s review process, MassDOT considered other criteria. He emphasized Applegreen’s proposal to raze and rebuild nine plazas and refurbish the other nine at a rapid pace.
Applegreen CIO Ronan Ryan reiterated as much.
“We have an experienced team of travel plaza experts who are ready to develop this project and we will have all work completed by 2028, if we proceed,” Ryan said. “Our redevelopment will employ over 1,500 local people after construction, and thousands of people during construction and will deliver world-class service plazas that the Commonwealth, and the two billion people that will visit these sites over the life of the concession, can be proud of.”
Eight of the nine board members ultimately voted to approve the agreement. After describing a concerning experience she had a New York State Thurway Applegreen stop, Dr. Lisa Iezzoni later opted to abstain.
According to MassDOT, a "Master Revitalization Plan" for the plazas is due to be submitted by Oct. 31.
Other elements of Applegreen's proposal include increasing car and truck parking at highway plazas and a "rapid increase" in EV charging options.
Applegreen bills itself as the largest operator of “on-highway service plazas” in the US, Ireland and the UK, serving almost 500,000 customers per day.
