Pebblebrook Acquires the Hotel Vintage Park Seattle and the Hotel Vintage Plaza Portland
BETHESDA, Md.—Pebblebrook Hotel Trust (the “Company”) today announced that it has acquired the Hotel Vintage Park Seattle for $32.5 million and the Hotel Vintage Plaza Portland for $30.5 million. Both properties will continue to be managed by Kimpton Hotels & Restaurants (“Kimpton”). READER COMMENTS
“We’re thrilled to acquire the Hotel Vintage Park Seattle and the Hotel Vintage Plaza Portland in two major West Coast gateway cities,” said Jon Bortz, Chairman and chief executive officer of Pebblebrook Hotel Trust, in an announcement. “These distinctive hotels are supported by superb downtown locations, consistently high occupancy levels and strong positive cash flows. Increasing demand, coupled with minimal lodging supply growth and high barriers-to-entry, provide for excellent operating fundamentals at both hotels moving forward.”
The 124-room Hotel Vintage Park Seattle was converted by Kimpton to a hotel in 1992 and features 124 guestrooms, with each room dedicated to an acclaimed Washington State winemaker. Amenities at the 11-story hotel include custom cherry wood furnishings, 1,000 square feet of meeting space, in-room spa services, a fitness center, a business center, and a 66-space, on-site parking structure.
In 2011, the Hotel Vintage Park Seattle operated at 88 percent occupancy, with an average daily rate (“ADR”) of $146 and room revenue per available room (“RevPAR”) of $129, a decline of 16 percent from the property’s prior RevPAR peak in 2007. During the next 12 months, the Company currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $2.3 to $2.8 million and net operating income after capital reserves (“NOI”) of $1.9 to $2.4 million.
The 117-room Hotel Vintage Plaza Portland was fully renovated in 2008 and features 117 guestrooms, with each room dedicated to a local winery or vineyard. The hotel features conservatory-style windows in the Starlight guestrooms and 150-square foot outdoor balconies, some including hot tubs. The property offers 4,800 square feet of meeting space in eight meeting rooms. The hotel also offers a business center, a fitness center, in-room spa services and valet parking.
In 2011, the Hotel Vintage Plaza Portland operated at 87% occupancy, with an ADR of $145 and RevPAR of $126. During the next 12 months, the Company forecasts that the hotel will generate EBITDA of $2.1 to $2.6 million and NOI of $1.6 to $2.1 million.
Both hotels will continue to be managed by Kimpton, which has managed the Hotel Vintage Park Seattle since 1991 and the Hotel Vintage Plaza Portland since 1989.
The Company expects to incur approximately $0.4 million of costs related to the acquisition of the hotels that will be expensed as incurred.
The acquisition of the Hotel Vintage Park Seattle and Hotel Vintage Plaza Portland brings the total number of properties in the Company’s portfolio to 23, comprising $1.8 billion of invested capital since the Pebblebrook completed its initial public offering in December 2009.