Wednesday January 30th, 2013 - 11:18AM
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.