US: Pebblebrook Hotel Trust has expanded its relationship with Kimpton Hotels and Restaurants, with the purchase of the 196-room Hotel Palomar San Francisco.
The hotel will continue to be managed by Kimpton, which also manages seven of Pebblebrook’s other hotels, including several in San Francisco.
Jon Bortz, chairman, president and CEO of Pebblebrook Hotel Trust, said: “We’re extremely excited about the acquisition of the Hotel Palomar and the opportunity to further expand our presence in the highly desirable San Francisco market. The hotel is attractively located at the nexus of three of San Francisco’s most dynamic neighborhoods: the South of Market district, the Financial District and Union Square. This ideal location is adjacent to the Westfield San Francisco Centre as well as the world famous Powell & Market cable car turntable, and just blocks from Moscone Convention Center and Union Square. In addition to the abundant and diverse collection of demand generators, the city’s location on the West Coast makes it a natural gateway to travelers from Asia. The strong leisure and business demand in this market, coupled with the extremely high barriers to entry, makes the Hotel Palomar San Francisco a very exciting addition to our portfolio.”
Built in 1907, the hotel opened as the Hotel Palomar San Francisco in 1999 and features 196 guest rooms, 3,000 square feet of meeting space and an award-winning signature restaurant, Fifth Floor Restaurant & Lounge.
In 2011, the Hotel Palomar San Francisco operated at 81% occupancy, with an ADR of of $222 and RevPAR of $178. During the next 12 months, Pebblebrook currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $4.1 to $4.5 million and net operating income after capital reserves (“NOI”) of $3.4 to $3.8 million.
The transaction includes the assumption of a $27.2 million secured loan, with the balance of the purchase price funded by the Company with available cash. It brings the total number of properties in the Company’s portfolio to 25, comprising $2.0 billion of invested capital since the Company completed its initial public offering in December 2009.
www.KimptonHotels.com
www.pebblebrookhotels.com.
