Pebblebrook Acquires The Tuscan Fisherman’s Wharf in San Francisco

BETHESDA, MD— Pebblebrook Hotel Trust has acquired The Tuscan Fisherman’s Wharf, a Best Western Plus Hotel for $122 million. The 221-room hotel is located in the heart of Fisherman’s Wharf in San Francisco. The property will continue to be managed by Kimpton Hotels & Restaurants.

“We’re excited about our acquisition of The Tuscan, which marks our seventh hotel investment in the highly desirable San Francisco market and our third in the dynamic Fisherman’s Wharf submarket,” said Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust. “The hotel’s location is central to many popular area attractions including Pier 39, Ghirardelli Square, and many dining and retail venues, and is reflected in the hotel’s high occupancy levels and strong cash flows. The repositioning opportunity at The Tuscan combined with the revitalization of the entire Fisherman’s Wharf market makes us excited to add this hotel to our expanding portfolio.”

The 221-room, full-service hotel is located just one block from the company’s Hotel Zephyr (formerly Radisson Fisherman’s Wharf).  It was built in 1990 and underwent a $3.6-million renovation in 2012, impacting all areas of the hotel. The property’s distinct features, such as its corner location and central, open-air garden courtyard, allows for natural light throughout the guestrooms, and an on-site, 69-space subterranean parking lot distinguishes this boutique hotel amongst its competitors, according to Pebblebrook. Pescatore, the hotel’s signature 84-seat restaurant, offering contemporary Italian cuisine and outdoor dining along the Fisherman’s Wharf frontage. The hotel also offers 2,000 sq. ft. of meeting and banquet facilities, a business center, access to a 24-hour fitness facility and valet parking.

In 2014, The Tuscan operated at 90% occupancy, with an ADR of $219 and RevPAR of $198. The company forecasts that the hotel during the next 12 months will generate EBITDA of $8.4 million to $8.9 million and NOI of $7.5 million to $8.0 million.

The company plans to invest $13 million to $15 million between 2016 and 2017 in a complete renovation and repositioning of the hotel, including all guestrooms and public areas. The renovation is expected to commence in the fourth quarter of 2016.

“We’re thrilled to continue to grow our successful relationship with Kimpton Hotels

& Restaurants,” noted Bortz. “The acquisition of The Tuscan marks our 11th Kimpton-managed property and our fifth Kimpton-managed hotel in San Francisco, and we look forward to working with Kimpton to create additional value at this hotel.”

“We are confident that partnering with Pebblebrook Hotel Trust on The Tuscan will position the property for continued success in the years to come,” said Kimpton’s CEO Mike DeFrino.

The acquisition of The Tuscan brings the total number of properties in Pebblebrook’s portfolio to 37 and marks its seventh investment in San Francisco, including its third hotel in the Fisherman’s Wharf submarket.