Recent transactions include Pebblebrook Hotel Trust selling San Francisco’s Hotel Spero; Noble House Hotels & Resorts acquiring 50% of The Marquesa Hotel in Key West, FL; and Concord Summit Capital arranging total construction financing for the Kindred Resort in Colorado.
Hotel Spero in San Francisco sold for $71M
Pebblebrook Hotel Trust has closed on the sale of the 236-room Hotel Spero in San Francisco for $71 million to a third party.
For the trailing 12 months ended June 30, the hotel’s net operating loss was $1.6 million, and its hotel EBITDA was a loss of $1.4 million. Based on the hotel’s operating performance for 2019, the $71 million sales price reflects a 9.1x EBITDA multiple and a 9.8% net operating income capitalization rate. The net operating income (loss) for both periods mentioned above is after an assumed annual capital reserve of 4.0% of total hotel revenues.
Proceeds from the sale will be used for general corporate purposes and reducing the company’s outstanding debt borrowings associated with recent hotel acquisitions, in accordance with its investment strategy.
Noble House acquires 50% of The Marquesa Hotel
Noble House Hotels & Resorts has acquired 50% ownership in The Marquesa Hotel and the Café Marquesa in Key West, FL. The current owners and operators of 35 years, Carol Wightman, Erik deBoer and Derek deBoer, will continue to own the remaining interest in the hotel. Noble House Hotels & Resorts will operate and manage the property going forward.
Listed on the National Register of Historic Places, The Marquesa Hotel is located near Duval St. and one mile from the Atlantic Ocean and consists of a complex of restored Victorian homes which span over two blocks of historic Old Town. The hotel features 44 rooms, three swimming pools, tropical interior gardens and the 80-seat Café Marquesa.
“We have long admired The Marquesa Hotel and Café Marquesa for their flawless reputation and impeccable guest experience,” said Jake Donoghue, CEO, Noble House Hotels & Resorts. “We are so proud to enter a partnership with owners Carol, Erik and Derek. The addition of The Marquesa Hotel to the Noble House Hotels & Resorts portfolio reinforces our commitment to growth with on-brand, award-winning properties. We are excited to welcome the employees of The Marquesa to the Noble House family. Equally as excited are the team members of Marquesa’s new sister properties located in the Keys, Ocean Key Resort & Spa and Little Palm Island Resort & Spa. Adding our third Florida Keys property to the collection exhibits our passion and commitment to this beloved destination.”
Concord Summit closes $232.5M of construction financing for Kindred Resort
Concord Summit Capital LLC has arranged $232.5 million of total construction financing for the Kindred Resort, a mixed-use development in Keystone, CO, directly adjacent to the Keystone Ski Mountain River Run Gondola. The company sourced a $140-million senior construction loan, $55.47 million in CPACE financing and a commitment for $30 million of preferred equity investment for the project. Rounding out the capital stack is a $7-million co-general partner investment from Pure Development.
The project will include the hotel, a new ski school, several new dining options, a private ski club and 95 residential condo units. The 107-key luxury hotel will be managed by Rock Resorts, a subsidiary of Vail Resorts.
The development team is a joint venture between three Summit County locals in Scott Russell, Shervin Rashidi and Ryan Geller, and the institutional development expertise of Denver-based Pure Development. Pre-construction work is underway with an estimated completion in 2025.
Concord Summit Capital’s Managing Director Peter Goergen sourced the financing on behalf of the borrowers.
“The Kindred development team has been terrific to work with,” he said. “This project required years of work on behalf of the county, Vail Resorts, capital partners, the development team and countless other stakeholders.”
“We couldn’t be more satisfied with the perseverance and leadership of Peter and CSC, and fully appreciate the team that helped complete the construction financing,” said Russell, managing partner, Kindred. “The complexity of this type of development requires a sophisticated partner that has relationships, knowledge and support to complete the capital stack. We look forward to working with CSC again on our next project.”
PCL Construction is the project’s general contractor and OZ Architecture led the design efforts.