US: Pebblebrook Hotel Trust has acquired the 174-room Hotel Modera in downtown Portland, Oregon, for $47.5 million.
The property was built in 1962, and underwent a comprehensive $13 million renovation and repositioning that was completed in 2008. It will be managed by OLS Hotels and Resorts. As part of the transaction, Pebblebrook is assuming a $23.7 million secured, non-recourse loan, with the balance of the purchase price being funded by the company with available cash.
Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust said: “We’re thrilled to acquire the Hotel Modera in the west coast gateway city of Portland and expand our presence in the highly desirable downtown Portland market. This distinctive hotel benefits from its central downtown location, consistently high occupancy levels and strong positive cash flows. The hotel is located within one block of Portland Plaza, five blocks from both the Portland Art Museum and the Tom McCall Waterfront Park, and a half mile from Pebblebrook’s Hotel Vintage Plaza Portland. The already healthy operating performance of the property, coupled with a strong rebound in demand fundamentals and the implementation of Pebblebrook’s best practice and asset management initiatives, makes the Hotel Modera a great investment opportunity for our company.”
“OLS has an extensive amount of industry experience, particularly with high-quality boutique hotels, and we believe their approach to managing the property will maximize its long term value while also taking advantage of the strength of the Portland market. We’re delighted to be developing a strategic relationship with OLS and we look forward to working with them at the Hotel Modera,” he added.
OLS CEO John Fitts said: “We are excited to be renewing a long and prior relationship with the senior executives of Pebblebrook Hotel Trust and to bring our extensive experience with boutique hotels to the Hotel Modera. The Hotel Modera offers strong growth potential and we are enthusiastic about unlocking additional value in the hotel.”
In 2012, the Hotel Modera operated at 79 percent occupancy, with an average daily rate of $135 and RevPAR of $106.