Pebblebrook Hotel Trust, a publicly traded real estate investment trust (REIT) based in Bethesda, MD, announced this week that it had acquired the Embassy Suites San Diego Bay – Downtown for $112.5 million. As a part of this transaction, the Pebblebrook is assuming a $66.8 million secured, non-recourse loan that matures in June 2016, with the balance of the purchase price being funded with available cash. Moving forward, the property will be managed by HEI Hotels and Resorts.
"We're very excited about the acquisition of the Embassy Suites San Diego Bay – Downtown and the opportunity to further expand our presence in the highly desirable downtown San Diego market," said Jon Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust. "The hotel is extremely well located at the corner of Harbor Drive and Pacific Highway, just steps away from Seaport Village and the waterfront. This ideal location is only four blocks from the San Diego Convention Center, and six blocks from Westfield Horton Plaza Shopping Mall, as well as a variety of restaurant and entertainment options in the vibrant Gaslamp Quarter. The strong leisure, group and convention demand for San Diego, particularly in this location along the waterfront, makes the Embassy Suites San Diego Bay – Downtown an excellent investment for our company."
"We are excited to create this new partnership with Pebblebrook Hotel Trust," said HEI's Chief Executive Officer, Anthony Rutledge. "The Embassy Suites San Diego Bay – Downtown exhibits strong growth potential and we are eager to bring our proven industry experience to the hotel."
Built in 1988, the hotel was fully renovated in 2006 and completed a $3.5 million guest suites renovation in May 2012, and operated at 83% occupancy in 2012. The 337-suite, urban, upper upscale, full service hotel is located in downtown San Diego, California.
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