Pebblebrook Acquires Embassy Suites San Diego Bay-Downtown
Wednesday January 30th, 2013 - 11:18AM
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SAN DIEGO—Pebblebrook Hotel Trust has acquired the Embassy Suites San Diego Bay-Downtown for $112.5 million, bringing the total number of properties in its portfolio to 26.
As part of the transaction, the company is assuming a $66.8 million secured, non-recourse loan, with the balance of the purchase price being funded by the company with available cash. The loan matures in June 2016.
Built in 1988, the 337-suite hotel was fully renovated in 2006 and completed a $3.5-million renovation of the guest suites last May.
The hotel features a 12-story atrium; PFC Bar & Grill; approximately 5,000 sq. ft. of meeting space; an indoor heated swimming pool and whirlpool; and 3,411 sq. ft. of leased retail space on the ground floor.
The company forecasts that in 2013 the hotel will generate EBITDA of $8.5 to $9 million and NOI of $7.5 to $8 million, both before an expected $1-million renovation impact.
HEI Hotels and Resorts will manage the property.
Tags: Hospitality Ownership
The most recent NYU Conference, earlier this month proved, once and for all, that the lodging industry has finally turned the corner and happy days are, indeed, here again. While the economists and pundits all provided plenty of anecdotal evidence to bear that out in terms of supply and demand ratios, RevPAR projections, asset values and all the other metrics, that’s not what has me convinced.