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Pebblebrook buys, will reposition Radisson Fisherman’s Wharf

Pebblebrook Hotel Trust on Tuesday announced that it has acquired the 355-room Radisson Hotel Fisherman’s Wharf and Retail in San Francisco for US$132 million. The property will now be managed by Davidson Hotels & Resorts.

A US$18-20 million redesign between 2014 and 2015 overseen by Dawson Design Associates, the same design team that repositioned the company’s Hotel Zetta in San Francisco, will lead to a renaming of the asset.

“This hotel benefits from an excellent location in the heart of Fisherman’s Wharf, which is reflected in the hotel’s consistently high occupancy levels and strong cash flows,” said Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust. “The property’s diversity of income streams, including the revenue from 44,000 square feet of premier ground level retail space, coupled with a significant repositioning opportunity, makes the Radisson Hotel Fisherman’s Wharf and Retail another terrific addition to our expanding portfolio.”

In 2013, the hotel is forecasted to operate at 89% occupancy with US$184 ADR and US$165 RevPAR, EBITDA of US$11.9 million and NOI after capital reserves of US$11 million. The property’s retail space is currently 95% leased with an average rent per square foot over US$100.

In 2014, the company currently forecasts that the hotel will generate EBITDA of US$10.2 to $10.7 million and net operating income after capital reserves of US$9.3 to US$9.8 million.

The acquisition brings the number of properties in the company’s portfolio to 29 and marks its fifth investment in San Francisco.

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