SAN FRANCISCO — A partnership between Woodridge Capital Partners and funds managed by Oaktree Capital Management has acquired the historic Mark Hopkins Hotel at One Nob Hill in San Francisco for $120 million. Woodridge and Oaktree are purchasing the 383-room hotel from InterContinental Hotels Group (NYSE: IHG), which will continue to manage the hotel. The buyers plan to invest $20 million to renovate the guest rooms and common areas of the property.
The Mark Hopkins Hotel opened on Dec. 4, 1926, on the site of railroad magnate Mark Hopkins’ 40-room mansion. Hopkins was one of the founders of the Central Pacific Railroad, which built the railway that linked the West Coast with the East Coast. The hotel has hosted U.S. presidents, world leaders, movie stars and business tycoons.
“We are thrilled to add the Mark Hopkins San Francisco Hotel to our holdings further reinforcing our relationship with the great city of San Francisco,” says Michael Rosenfeld, CEO of Woodridge Capital Partners. “We are committed to enhancing the value of this prized asset.”
Oaktree and Woodridge also own the historic Fairmont San Francisco across from the Mark Hopkins that they purchased in May 2012. With close to 1,000 rooms, the Mark Hopkins and Fairmont sit atop the crest of Nob Hill near the city’s Financial District. Nob Hill is the only spot in San Francisco where the city’s cable car lines meet.
“Through a strong partnership with hotel employees and numerous city constituencies, we're excited about the future of the San Francisco luxury hospitality market, and owning both iconic assets on top of Nob Hill, the Mark Hopkins and the Fairmont across the street,” says John Brady, global head of real estate for Oaktree Capital Management.
Designed by San Francisco firm Weeks and Day, the 19-story hotel features a French chateau-style exterior with terra cotta Spanish ornamentation. A central tower with two wings houses the Top of the Mark lounge on the 19th floor, which features 360-degree views. The hotel was well-known during World War II as the last stop for Pacific-bound soldiers and their first stop on returning home.
The Mark Hopkins features 19,000 square feet of meeting rooms, including the Room of the Dons that features nine seven-foot murals of early California history. Also, the Peacock Court ballroom is one of the city’s most popular venues. The hotel was designated a historic landmark in 1987.
Woodridge Capital Partners LLC is a Los Angeles-based real estate development and investment company, and through its affiliates, are owners and developers of hotel, resort, residential and commercial properties throughout the United States.
Oaktree Capital Management LPis a global investment manager that specializes in alternative investments, with $83.6 billion in assets under management as of Dec. 31, 2013. Headquartered in Los Angeles, the firm has more than 800 employees and offices in 16 cities worldwide.
InterContinental Hotels Group’s stock price closed Tuesday at $33.39 per share, up from $30.07 per share this time last year.
— John Nelson