Pebblebrook Hotel Trust Continues Bay Area Expansion with Hotel Palomar
- Nov 01, 2012
By Alex Girda, Associate Editor
At a time when San Francisco hotels are catching everyone’s fancy and room rates are going strong, it is to be expected that a number of hospitality transactions are being thrown around in the excitement. A case in point would be the recent acquisition of the Hotel Palomar San Francisco by Pebblebrook Hotel Trust. The AAA, four-diamond venue is branded by Kimpton Hotels & Restaurants, and it will continue to be managed by them.
The 196-room boutique hotel is located in the city’s downtown area at the corner of Fourth and Market Streets in close proximity to one of Pebblebrook’s other recent acquisitions—the Hotel Milano. Also nearby is the Moscone Convention Center, one of the city’s largest attractions, as well as the financial district, Union Square and the now famous SoMa office haven.
San Francisco’s Westfield Shopping Centre—home of Bloomingdale’s most representative branch on the West Coast—is also in the immediate vicinity, as well as the second-largest Nordstrom in the country.
Hotel Palomar was built in 1907 and opened under the name of Palomar San Francisco in 1999. The four-diamond, full-service upscale boutique hotel is a 196-key venue offering visitors high-speed WiFi, an honor bar and 37” flat screen TV’s in all of the rooms, while in-room baths feature Etro amenities and Kimpton signature brand bathrobes. 3,000 square feet of space divided into four rooms are designed for meeting purposes. Fitness facilities, hosted evening wine receptions and valet parking are also part of the hotel’s package.
Pebblebrook moved to acquire a hotel that, in 2011, operated at 81 percent occupancy with an average daily rate of $222 and room revenue per available room of $178. Part of the deal for Hotel Palomar is that the company will have to assume a $27.2 million non-recourse secured loan with a fixed annual interest rate of 5.94 percent.
For a more in-depth take on the acquisition of the Hotel Palomar San Fancisco, click here.
For more market data from San Francisco, click here.