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US: Pebblebrook Hotel Trust has acquired the 57-room, extended-stay Redbury Hotel in Hollywood, California, for US$34 million from the CIM Group.
sbe Hotel Group will continue to manage the property, which operated at 84% occupancy with an ADR of $274 and RevPAR of $230 during 2012. Pebblebrook forecasts that the hotel will generate EBITDA of $2.75 to $3 million and NOI of $2.25 to $2.5 million over the next year.
Jon Bortz, chairman, president and CEO of Pebblebrook, said: “The Redbury complements our hotels in West Hollywood (Mondrian Hotel), Westwood (W Los Angeles – Westwood) and Santa Monica (Sheraton Delfina, soon to be rebranded Le Meridien Delfina). The steady demand growth of the market, along with a historically constrained supply environment, provides excellent operating fundamentals for the market and the hotel.”
sbe CEO Sam Nazarian said: “Partnering with Pebblebrook on the Redbury is a venture with tremendous upside and positions the property for continued success for years to come. Our collective knowledge of the Los Angeles market and vast hotel industry expertise will add tremendous value to the property and provide a strong foundation for our partnership to thrive.”
The acquisition of The Redbury Hotel brings the Pebblebrook portfolio to 27 properties, comprising US$2.1 billion of invested capital.
www.pebblebrookhotels.com
www.sbe.com
