SAN FRANCISCO—Pebblebrook Hotel Trust has acquired the 160-room Prescott Hotel for $49.0 million located in Union Square. The property will continue to be managed by Kimpton Hotels & Restaurants.
The Prescott Hotel is comprised of two buildings, 545 Post St., in which Pebblebrook Hotel Trust will own a fee simple interest consisting of 96 guestrooms (seven stories), and 555 Post St., an adjacent attached building, in which the company will own a leasehold interest consisting of 64 guestrooms (located on floors three though seven). The company’s leasehold interest in the 555 Post St. building currently has 75 years remaining and expires in 2089.
545 Post St. was originally built in 1913 as the Cecil Hotel and 555 Post St. was originally built in 1922 for the Union League Club. Both buildings were renovated, repositioned and opened as The Prescott Hotel in 1989.
In 2013, the Prescott Hotel operated at 88% occupancy, with an average daily rate of $206 and room revenue per available room of $181. During the next 12 months, the Company currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization of $3.2 to $3.8 million and net operating income after capital reserves of $2.7 to $3.3 million.
The upper upscale, full-service Prescott Hotel is located on Post Street just one block from Union Square. This hotel is also just three blocks from the Moscone Convention Center, the Powell & Market cable car turntable and the Westfield San Francisco Centre urban shopping mall.
Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust, stated, “Just one block west of Union Square, this hotel, which represents our sixth hotel investment in San Francisco, is attractively located in the city’s world-renowned shopping and entertainment district. The property is central to San Francisco’s primary business demand drivers, including the Financial District, the Moscone Convention Center and the Union Square submarket.”