Pebblebrook Hotel Trust, based in Bethesda, Md., has acquired its fourth San Francisco-based lodging destination with the $58 million purchase of the Hotel Palomar San Francisco.
The 196-room, AAA four-diamond boutique hotel is located in downtown San Francisco. The property will continue to be managed by Kimpton Hotels & Restaurants.
The transaction includes the assumption of a $27.2 million secured loan, with the balance of the purchase price funded by the company with available cash. Pebblebrook Trust will own a leasehold interest in the property through a long-term hotel lease with Jamestown Properties. There are currently 85 years remaining on the long-term lease, which expires in 2097.
‘We're extremely excited about the acquisition of the Hotel Palomar and the opportunity to further expand our presence in the highly desirable San Francisco market,’ says Jon Bortz, chairman, president and CEO of Pebblebrook Hotel Trust. ‘The strong leisure and business demand in this market, coupled with the extremely high barriers to entry, makes the Hotel Palomar San Francisco a very exciting addition to our portfolio.’