SAN FRANCISCO — Pebblebrook Hotel Trust has acquired the 160-room Prescott Hotel in San Francisco for $49 million. The hotel is located on Post Street, just one block from Union Square. It also enjoys close proximity to the Moscone Convention Center, the Powell & Market cable car turntable and the Westfield San Francisco Centre.
The Prescott Hotel contains two buildings. The 96-room, seven-story building is located at 545 Post Street. Pebblebrook will own a fee-simple interest in this property. The company will own a leasehold interest in the second building, which contains 64 rooms on floors three through seven. That building is located at 555 Post Street. There is 75 years remaining on that lease, which expires in 2089.
The former building was originally built in 1913 as the Cecil Hotel, while the latter building was constructed in 1922 for the Union League Club. Both buildings were renovated, repositioned and reopened as the Prescott Hotel in 1989.
Pebblebrook also plans to renovate and reposition the property sometime between 2015 and 2016. The hotel’s design will be overseen by Dawson Design Associates. Kimpton will continue to manage the property. This is Pebblebrook’s sixth investment in San Francisco.
The Prescott Hotel operated at 88 percent occupancy last year. It posted an average daily rate of $206, and a RevPAR of $181.