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Pebblebrook Hotel Trust (NYSE: PEB) (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. The 124-room, AAA four-diamond, full-service, boutique Hotel Vintage Park Seattle is located at the core of downtown Seattle’s retail and financial center and the 117-room, AAA four-diamond, full-service, boutique Hotel Vintage Plaza Portland is located in the heart of downtown Portland, Oregon. Both properties will continue to be managed by Kimpton Hotels & Restaurants (“Kimpton”).
Hotel Vintage Park in Seattle, WA (Photo: Business Wire)
“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. “These distinctive hotels are supported by superb downtown locations, consistently high occupancy levels and strong positive cash flows. The Hotel Vintage Park Seattle is located in the heart of the city’s major shopping, office, entertainment and dining locations, including Pike Place Market, Pioneer Square and the Washington Convention and Trade Center. The Hotel Vintage Plaza Portland is located within two blocks of Portland’s Pioneer Courthouse Square and a short walk from Pioneer Place Mall, Nordstrom, Nike Town, the Pearl district and the Portland Center for the Performing Arts. 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 is located at the corner of 5
th Avenue and Spring Street, one block from the Company’s Hotel Monaco Seattle, in the epicenter of downtown Seattle’s retail and financial center. Downtown Seattle offers premier office, dining, convention, entertainment and shopping, all of which provide a diverse collection of corporate, convention and leisure demand. The Hotel Vintage Park Seattle is less than two blocks from The 5
th Avenue Theatre and within six blocks of Pioneer Square and Pike Place Market. Pike Place Market is one of the nation’s longest running farmers’ markets, an attraction that draws over 10 million visitors annually and is generally known as “The Soul of Seattle.” Seattle also contains over 33 million square feet of office space, with five of the city’s largest and highest quality- office buildings within five blocks of the hotel. The 726,000-square foot Washington State Trade & Convention Center, one of Seattle’s main lodging demand drivers, hosts between 40 and 50 city-wide events annually and is ideally located within five blocks of the Hotel Vintage Park.
Built in 1922, the Hotel Vintage Park Seattle was converted by Kimpton to a hotel in 1992 and features 124 unique guest rooms, with each room dedicated to an acclaimed Washington State winemaker. The property was named among the “Best 500 Hotels in the World” by
Travel + Leisure magazine in 2011. 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. The hotel also features the award-winning Tulio Ristorante, a longstanding downtown Seattle favorite, serving authentic Italian cuisine for breakfast, lunch (brunch on weekends) and dinner daily.
In 2011, the Hotel Vintage Park Seattle operated at 88% occupancy, with an average daily rate (“ADR”) of $146 and room revenue per available room (“RevPAR”) of $129, a decline of 16% 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.