Pebblebrook's Memorable Buy
Pebblebrook closed on a big buy before Memorial Day weekend got started. The growing S.F. brand bought its sixth S.F. hotel, the 160-room Prescott Hotel in Union Square for $49M. It will continue to be managed by Kimpton. Pebblebrook CEO Jon Bortz (pictured) said the hotel's submarket has historically outperformed all others within S.F. due to its mix of leisure, corporate, group and convention demand. There's already been a surge of sales within the city's 200-plus hotels this year. The S.F. hotel market is one of the best in the country and should stay that way at least for the near future, Pebblebrook VP of finance Matt Partridge tells us.
Matt says the hotel was widely marketed and the process was competitive. The two-building property is comprised of 545 Post (originally built in 1913 as the Cecil Hotel) and 555 Post (originally built in 1922 for the Union League Club). Concept and design work will start soon for a renovation sometime between 2015 and 2016 to revamp all guest rooms, bathrooms and public areas. The design will be overseen by Dawson Design Associates, which also helped redo the company’s Hotel Zetta and is repositioning the Radisson Hotel Fisherman’s Wharf, bought in December.