Pebblebrook Hotel Trust Buys Hotel Palomar Los Angeles – Westwood for $78.7M
LOS ANGELES — Pebblebrook Hotel Trust (NYSE: PEB) has acquired the 264-room Hotel Palomar Los Angeles – Westwood for $78.7 million. The full-service boutique hotel is located at 10740 Wilshire Blvd. in the Los Angeles submarket of Westwood. The seller was undisclosed.
The hotel is situated near the University of California, Los Angeles (UCLA), the Wilshire Corridor, and Westwood Village’s many shopping, dining and entertainment options.
“The hotel is ideally located at the corner of Wilshire Boulevard and Selby Avenue, with proximity to all of the major motion picture studios, prominent dining, retail and museums and the Wilshire Corridor, which contains some of the highest-quality residential and office space in Los Angeles,” says Jon Bortz, Pebblebrook’s chairman, president and CEO.
“The healthy economic environment in the West Los Angeles market, which has benefitted from increased international inbound travel, provides excellent long-term operating fundamentals for the hotel.”
Hotel amenities include a 40-foot outdoor pool and deck with poolside food and beverage service, a fitness center, a five-story, 435-space parking garage with valet parking, a 24-hour business center and in-room spa services.
It also contains eight meeting rooms with more than 5,000 square feet of flexible meeting space. The property’s signature dining concept is BLVD 16, which features home-style American cooking and locally sourced ingredients.
Hotel Palomar operated at 87 percent occupancy, with an average daily rate of $207 and revenue per available room (RevPAR) of $180 for the 12-month period that ended this past September.
Pebblebrook forecasts the hotel will generate earnings between $5.2 million and $5.7 million in 2015, and a net operating income after capital reserves of $4.2 million to $4.7 million, before interest, taxes, depreciation and amortization.
The property will continue to be managed by Kimpton Hotels & Restaurants. This is the tenth Pebblebrook property to be managed by Kimpton. The acquisition brings Pebblebrook’s total property portfolio to 33. It is the firm’s fifth property in Los Angeles.
Pebblebrook Hotel Trust is a publicly traded REIT that acquires and invests in upper upscale, full-service hotels located in urban markets in major gateway cities. Pebblebrook’s stock price closed at $41.84 per share on Thursday, Nov. 21, up from $28.75 per share at this time last year.
— Nellie Day