At $526k Per Room, Pebblebrook's Latest Trade Indicative of Hotel Market's Momentum
Wall Street Journal reports: Boosting its total portfolio to 20 properties acquired since its 2009-debut, Pebblebrook Hotel Trust announced it has taken a 49% stake in six boutique type hotels in Midtown Manhattan. The firm paid $152 million, and assumed nearly $300 million in debt, for non-operating stakes at five Affina hospitality properties in addition to the Benhamin hotel.
The Wall Street Journal recognized the sale as additional evidence that New York’s hotel market is quickly recovering from the downturn. After occupancy rose sharply over 2009 and 2010 in Manhattan, investors have been keenly looking to acquire Big Apple hotels. The sector’s return has recently slowed as legacy development projects come online, though most of those are located away from Pebblebrook's recent activity in other parts of the city.
The price paid by Pebblebrook would put the value of the six hotels at $910 million, or an impressive $526,000 per room. This, the Journal said, was much higher than the already-high average unit pricing tracked by Real Capital Analytics. The average price per unit for a Manhattan hotel was $462,931 in the first quarter, and fell only slightly thus far in the second quarter, to $447,487.
View the full article on Wall Street Journal: At $526k Per Room, Pebblebrook's Latest Trade Indicative of Hotel Market's Momentum
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Posted by: Nina Turner