Pebblebrook REIT Preparing for More Action in Hot Hotel Market
Washington Post reports: Recent actions by the newly-formed Pebblebrook Hotel Trust, a public REIT headquartered in Bethesda, MD, comport with data aggregated by Real Capital Analytics (RCA) that illustrate rapidly improving hotel property sales in the US. As cited by the Washington Post, RCA recently stated in its US Capital Trends publication that US hotel acquisitions have exceeded $12.0 billion year-to-date through November, which is more than quadruple the volume over the same period in 2009.
Pebblebrook, in hot pursuit of hotel assets before competition erases today’s bargain pricing, has been “one of the most active lodging REITs in the country,” purchasing eight significant hotels over 2010. While the company has plenty of cash on hand – more than $200 million according to the Post – Pebblebrook is padding its hotel purchasing power by recently revealing it would consider the sale of common shares and debt securities in the near future. Registration with the Securities and Exchange Commission would allow the company to issue up to $500 million in securities at a time. That amount of equity could buy the REIT a lot of hotels.
The hotel sector’s recovery has been fostered over 2010 by improving property fundamentals and room revenue. The allure of yield in the hotel sector has provided incentives for buyers to pursue investment opportunities there, particularly in the most-visible markets such as New York, Los Angeles, and San Francisco.
View the full article on Washington Post: Pebblebrook REIT Preparing for More Action in Hot Hotel Market
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Posted by: Nina Turner