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Revere Hotel Boston Common
Pebblebrook Hotel Trust (NYSE:PEB) last week announced that it has acquired the Revere Hotel Boston Common, an attached 826-space parking garage and an adjacent land parcel for $260.4 million.
“We’re thrilled to announce our acquisition of the Revere Hotel and the expansion of our presence in the highly desirable Boston market,” said Jon Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust. “Situated at the convergence of Boston’s Back Bay, Financial District and Theatre District, one block from the Company’s W Boston Hotel, the Revere Hotel is proximate to the city’s most notable attractions, including the Hynes Convention Center, Boston Common, Copley Square, TD Garden, Faneuil Hall, Fenway Park and Newbury Street. The hotel is ideally located near high-quality demand generators including Class A office space, some of Boston’s finest dining, upscale destination retail, theatre venues, and medical and educational institutions.”
The Revere Hotel is a 356-room, upper-upscale, full-service hotel that was built in 1972 and converted to its independent status following an extensive $29.0 million ($81,000 per key) renovation in 2012 that impacted all areas of the hotel. The property includes a large amount of unique meeting and event space, totaling over 28,000 square feet, including Space 57, a versatile, blank canvas meeting room, Theatre 1, a popular venue for movie screenings, business conferences and intimate concerts, and The Gallery, an avant-garde meeting floor, all of which is in addition to 16,000 square feet at the Rooftop at Revere and Emerald Lounge. The Rooftop at Revere is a seasonal rooftop bar situated seven stories above street level over the parking garage, while Emerald Lounge serves both hotel guests and locals as the property’s second floor cocktail bar and private event space. Rustic Kitchen Bistro and Bar (leased) offers Italian-Mediterranean cuisine and is located on the ground floor. The attached 282,000 square foot parking garage is six stories and offers 826 spaces with accessibility from Stuart Street and Charles Street. The property features a state-of-the-art fitness center, a heated indoor swimming pool, valet parking and a business center.
In addition to the acquisition of the hotel and parking garage, the Company also purchased an adjacent 3,181 square foot vacant land parcel located at 212 Stuart Street. This land parcel offers a potential development opportunity that the Company will evaluate to determine optimal development utilization in the future.
For the trailing twelve months ended November 2014, the Revere Hotel operated at 87 percent occupancy, with an average daily rate (“ADR”) of $231 and room revenue per available room (“RevPAR”) of $202. In 2015, the Company currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $18.0 to $18.5 million and net operating income after capital reserves (“NOI”) of $16.2 to $16.7 million.
The Company expects to incur approximately $0.5 million of costs related to the acquisition of the hotel.
The acquisition of the Revere Hotel brings the total number of properties in the Company’s portfolio to 35 and marks the Company’s second investment in Boston, Massachusetts.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust (“REIT”) organized to opportunistically acquire and invest primarily in upper upscale, full-service hotels located in urban markets in major gateway cities. The Company owns 35 hotels, including 29 wholly owned hotels with a total of 6,948 guest rooms and a 49% joint venture interest in six hotels with a total of 1,775 guest rooms. The Company owns, or has an ownership interest in, hotels located in 11 states and the District of Columbia, including: San Francisco, California; Los Angeles, California (Hollywood, Santa Monica, West Hollywood and Westwood); New York, New York; Boston, Massachusetts; San Diego, California; Portland, Oregon; Buckhead, Georgia; Seattle, Washington; Washington, DC; Philadelphia, Pennsylvania; Miami, Florida; Columbia River Gorge, Washington; Nashville, Tennessee; Bethesda, Maryland and Minneapolis, Minnesota.