BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
it has acquired the Hotel Milano for $30.0 million. The 108-room,
full-service hotel is located in the South of Market (“SoMa”) and
Convention Center submarket of downtown San Francisco, California. The
property will be managed by Viceroy Hotel Group (“Viceroy”).
Hotel Milano Exterior, San Francisco, California (Photo: Business Wire)
“We are extremely excited to acquire the Hotel Milano in the highly
desirable and resurgent San Francisco market,” said Jon Bortz, Chairman
and Chief Executive Officer of Pebblebrook Hotel Trust. “The hotel is
ideally located in the South of Market/Convention Center downtown
submarket, adjacent to the Westfield San Francisco Shopping Centre and
just blocks away from the Moscone Convention Center, Union Square, the
Financial District and the world famous Powell & Market cable car
turntable. San Francisco was one of the strongest hotel markets in the
country during 2011, and we expect the robust economic and lodging
recovery to continue in San Francisco in 2012 and beyond.”
The 108-room Hotel Milano is conveniently located in downtown San
Francisco’s South of Market and Convention Center submarket, home of the
Moscone Convention Center, Yerba Buena Gardens, several of the city’s
most prominent arts organizations, including the San Francisco Museum of
Modern Art, the Center for the Arts at Yerba Gardens and the California
Historical Society, one of the largest collections of art galleries in
the United States. The hotel is adjacent to the 1.5 million square foot
Westfield San Francisco Shopping Centre, an iconic shopping destination
that is home to Bloomingdale’s west coast flagship store, the second
largest Nordstrom in the United States, 170 world-class boutique shops
and exceptional dining venues. In addition to the strong base of
permanent demand generators, San Francisco will host the 34th America’s
Cup, a world renowned sailing event that is projected to draw over 2.5
million spectators to the Bay Area in 2012 and 2013.
The San Francisco hotel market has been subject to strong recoveries
following previous economic downturns, experiencing a double digit
compounded annual room revenue per available room (“RevPAR”) growth rate
during the last recovery cycle, as well as 19.7% RevPAR growth in 2011,
the highest of any of the United States’ Top 25 markets. In addition,
the market has extremely high barriers to entry, as exhibited by a
compounded annual growth in supply of 0.5% over the past 20 years.
The Company plans to invest between $8.0 and $10.0 million over the next
12 months in a complete renovation and repositioning of the hotel,
including all guestrooms, public areas and the restaurant. The hotel’s
comprehensive guest room and public area improvements are expected to
commence in the second half of 2012 and the Company plans to rename the
property upon completion of the renovation.
“The comprehensive renovation and repositioning plan for the 108-guest
rooms, all facets of the public areas and the restaurant will touch each
and every aspect of the guest experience at the hotel,” noted Mr. Bortz.
“We are confident repositioning the hotel as an upper upscale,
four-diamond quality hotel will successfully satisfy the needs of this
fast growing neighborhood.”
The Company has selected Viceroy Hotel Group as manager for the Hotel
Milano. Viceroy also manages two of the Company’s other hotels: the
310-room Sheraton Delfina Santa Monica and the 148-room Viceroy Miami.
“We are excited to continue growing our relationship with Pebblebrook
Hotel Trust at the Hotel Milano,” said Viceroy Hotel Group’s Nicholas
Clayton. “The hotel exhibits strong growth potential and we are eager to
bring our proven industry experience to the San Francisco market for the
first time.”
“We’re thrilled to expand our extremely successful relationship with
Viceroy Hotel Group,” continued Mr. Bortz. “Their expertise in operating
high-quality boutique properties, such as the soon to be repositioned
Hotel Milano, gives us immense confidence in the future for the
property.”
The Company expects to incur approximately $0.7 million of costs related
to the acquisition of the hotel that will be expensed as incurred.
The acquisition of the Milano brings the total number of properties in
the Company’s portfolio to 21, comprising $1.7 billion of invested
capital since the Company completed its initial public offering in
December 2009.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust is a publicly traded real estate investment
trust (“REIT”) organized to opportunistically acquire and invest
primarily in upper upscale, full service hotels located in urban markets
in major gateway cities. The Company owns 21 hotels, comprised of 15
wholly owned hotels, with a total of 3,920 guest rooms and a 49 percent
joint venture interest in six hotels with 1,733 guest rooms. The Company
owns, or has an ownership interest in, hotels located in nine states and
the District of Columbia, including 14 markets: Bethesda, Maryland; San
Francisco, California; Buckhead, Georgia; Washington, DC; Minneapolis,
Minnesota; Columbia River Gorge, Washington; Santa Monica, California;
Philadelphia, Pennsylvania; San Diego, California; Seattle, Washington;
West Hollywood, California; Miami, Florida; Boston, Massachusetts; and
New York, New York. For more information, please visit www.pebblebrookhotels.com.
About Viceroy Hotel Group
Viceroy Hotel Group delivers one-of-a-kind lifestyle experiences that
bring together provocative design and intuitive service in sought-after
locations. Signature brand amenities and services created for the
diverse business and leisure guests include dynamic dining venues
featuring world-class culinary talents and destination spas specializing
in health, fitness and beauty. Current properties include hotels and
resorts in Abu Dhabi, Anguilla, Beverly Hills, Miami, New York, Palm
Springs, Riviera Maya, Santa Monica, Snowmass, St. Lucia and Zihuatanejo
with forthcoming openings in the Maldives and Bodrum, Turkey. For more
information, please visit www.viceroyhotelgroup.com.
This press release contains certain “forward-looking statements”
relating to, among other things, potential property acquisitions, hotel
EBITDA, hotel net operating income after capital reserves, acquisitions
costs and projected demand.Forward-looking statements are
generally identifiable by use of forward-looking terminology such as
“may,” “will,” “should,” “potential,” “intend,” “expect,” “seek,”
“anticipate,” “estimate,” “approximately,” “believe,” “could,”
“project,” “predict,” “forecast,” “continue,” “plan” or other similar
words or expressions.Forward-looking statements are based on
certain assumptions and can include future expectations, future plans
and strategies, financial and operating projections or other
forward-looking information.Examples of forward-looking
statements include the following: projections of hotel-level EBITDA and
net operating income after capital reserves; projections of acquisition
costs; descriptions of the Company’s plans or objectives for future
operations, acquisitions or services; forecasts of future economic
performance; and descriptions of assumptions underlying or relating to
any of the foregoing expectations regarding the timing of their
occurrence.These forward-looking statements are subject to
various risks and uncertainties, many of which are beyond the Company’s
control, which could cause actual results to differ materially from such
statements.These risks and uncertainties include, but are not
limited to, the state of the U.S. economy, supply and demand in the
hotel industry and other factors as are described in greater detail in
the Company’s filings with the Securities and Exchange Commission
(“SEC”), including, without limitation, the Company’s Annual Report on
Form 10-K for the year ended December 31, 2011.Unless legally
required, the Company disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
For further information about the Company’s business and financial
results, please refer to the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Risk Factors”
sections of the Company’s SEC filings, including, but not limited to,
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,
copies of which may be obtained at the Investor Relations section of the
Company’s website at www.pebblebrookhotels.com
and at www.sec.gov
.
All information in this release is as of April 9, 2012.The
Company undertakes no duty to update the statements in this release to
conform the statements to actual results or changes in the Company’s
expectations.The Company assumes no responsibility for the
contents or accuracy of the information on any of the non-Company
websites mentioned herein, which are included solely for ease of
reference.
For additional information or to receive press releases via email,
please visit our website at
www.pebblebrookhotels.com
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50231760&lang=en
Pebblebrook Hotel Trust
Raymond D. Martz, 240-507-1330
Chief
Financial Officer
Source: Pebblebrook Hotel Trust