Pebblebrook Pays $260.4 Million for Revere Hotel, Adjacent Parking and Vacant Lot
- Dec 23, 2014
By Veronica Grecu, Associate Editor
Shortly after entering the Nashville market by paying $52.3 million for the Union Station Hotel, Pebblebrook Hotel Trust made a Boston acquisition in The Hub.
The Bethesda, Md.-based real estate investment trust is now the new owner of the Revere Hotel Boston Common, one of the city’s most sophisticated hotels. Known as the Revere, the 356-room luxury hotel is located at 200 Stuart Street in the historic Theater District, within walking distance of the city’s financial and retail core. Pebblebrook—which also owns the W Boston Hotel—acquired the boutique hotel, an attached, six-story parking garage totaling 282,000 square feet and a 3,181-square-foot vacant parcel nearby at 212 Stuart Street from Northwood Investors for $260.4 million.
With the Revere Hotel acquisition, Pebblebrook now owns 35 hotels totaling more than 8,720 guest rooms. The REIT invests primarily in upper upscale, full-service hotels located in urban markets in major gateway cities such as San Francisco, Los Angeles, New York City, Seattle, Miami, San Diego and Washington, D.C.
“We’re thrilled to announce our acquisition of the Revere Hotel and the expansion of our presence in the highly desirable Boston market,” said Jon Bortz, chairman and chief executive officer of Pebblebrook Hotel Trust. “The hotel is ideally located near high-quality demand generators including Class A office space, some of Boston’s finest dining, upscale destination retail, theatre venues, and medical and educational institutions,” he added.
Built in 1972, the 24-story building previously operated as a Radisson hotel. According to the Boston Herald, in 2010 New York-based Northwood Investors purchased the hotel in a $143.5 million transaction. Two years later Northwood completed a $29 million renovation under plans by Cambridge Seven Associates, Inc. (C7A) in collaboration with interior design firm BBG-BBGM from New York.
For the last 12 months the Revere operated at 87 percent occupancy, with an average daily rate of $231 and room revenue per available room of $202. The new owners estimate that, in 2015, the hotel will generate $18 million to $18.5 million in earnings before interest, taxes, depreciation and amortization, and $16.2 million to $16.7 million in net operating income after capital reserves.
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Images courtesy of the Revere Hotel