OTO Development and MCR have acquired Hilton properties, while Pebblebrook Hotel Trust has completed the sale of a San Francisco hotel.
OTO Development acquires DoubleTree by Hilton Cocoa Beach
South Carolina-based OTO Development, which is part of The Johnson Group, acquired the DoubleTree by Hilton in Cocoa Beach, FL, from Pandey Hotel Group of New Zealand. The transaction was brokered by Paul Weimer, Christian Charre, Jennifer Jin and Andrew Pastorino, all of CBRE Hotels.
This is the sixth oceanfront property OTO has purchased since Q4 2018.
Originally built in 1987, DoubleTree Cocoa Beach closed following Hurricane Irma in fall 2017; it reopened in June of this year after undergoing an extensive renovation. Upon swap of keys, OTO will launch a $3-million repositioning of the 150-room property, with plans to convert four small meeting areas into seven additional guestrooms; construct a new resort-style pool complete with lazy river; build out the beach bar; and refresh 8,000 sq. ft. of meeting/event space.
Current F&B space will transition to Coconut Charlie’s Beach Bar & Grill, an original coastal concept initially launched at OTO’s Hilton Garden Inn in St. Pete Beach, FL.
MCR purchases the Hilton Garden Inn Missoula
MCR has acquired the 146-room Hilton Garden Inn Missoula in Missoula, MT, in the heart of the northern Rockies.
The property features The Garden Grille & Bar, Blue Canyon Kitchen & Tavern, Silver Creek Casino, free WiFi, a 24-hour convenience store, a fitness center, an indoor pool and 22,000 sq. ft. of event space across 15 flexible meeting rooms.
The hotel is near Missoula International Airport, as well as The Montana Snowbowl and the campus of the University of Montana.
Pebblebrook completes sale of Villa Florence San Francisco on Union Square
Pebblebrook Hotel Trust has closed on the sale of the 189-room Villa Florence San Francisco on Union Square for $87.5 million to a third party.
Based on the hotel’s operating performance for 2019, the $87.5 million reflects a 12.4x EBITDA multiple and a 7.2% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues). The EBITDA multiple and net operating income capitalization rate are adjusted for the annualized impact of current retail rental income and a one-time retail lease termination fee.
Proceeds from the sale of Villa Florence San Francisco on Union Square will be used for general corporate purposes and acquiring hotel properties in accordance with the company’s investment strategy.