Pebblebrook Hotel Trust (NYSE: PEB) announced it has acquired the 337-room Embassy Suites San Diego Bay for a reported $112.5 million.
The hotel at the junction of Harbor Drive and Pacific Highway is being purchased with the aid of a $66.8 million secured non-recourse loan with the balance being funded by Pebblebrook.
“We’re very excited about the acquisition of the Embassy Suites San Diego Bay – Downtown and the opportunity to further expand our presence in the highly desirable downtown San Diego market,” said Jon Bortz, Pebblebrook chairman and CEO in a statement. “The hotel is extremely well located at the corner of Harbor Drive and Pacific Highway, just steps away from Seaport Village and the waterfront."
A partnership known as Chief San Diego Hotel LLC of Irvine was listed as the seller of the property on RealQuest.
Embassy Suites San Diego Bay. Photo courtesy of CoStar
Built in 1988, the hotel was fully renovated in 2006 and a $3.5 million guest suites renovation was completed in May 2012.
Each room includes two separate rooms, 37- or 42-inch flat-screen high-definition televisions, microwave, mini refrigerator, coffee maker, dining table and chairs, sofa bed and high-speed wireless Internet access.
The hotel also features approximately 5,000 square feet of meeting space, including the 2,032-square-foot Monterrey Ballroom, an indoor heated swimming pool and whirlpool, and 3,411 square feet of leased retail space located on the ground floor. The hotel offers fresh seafood at PFC Bar & Grill, open daily from 11 a.m. until midnight.
In 2012, the Embassy Suites San Diego Bay operated at 83 percent occupancy, with an average daily rate (ADR) of $198. Pebblebrook has selected HEI Hotels & Resorts as manager for the hotel.
Pebblebrook also owns the 450-room Westin Gaslamp Quarter.
The acquisition of the Embassy Suites San Diego Bay – Downtown brings the total number of properties in the Pebblebrook’s portfolio to 26, comprising $2.1 billion of invested capital.