An affiliate of AWH Partners and the Roxborough Group paid $87.5 million for the century-old Villa Florence hotel near Union Square.
The venture intends to renovate and upgrade the 189-room boutique hotel at 225 Powell St., along with the ground-floor restaurant and lobby area, the companies announced. Several outlets first reported the story.
The property includes more than 10,000 square feet of retail space. The hotel opened in 1915.
Pebblebrook Hotel Trust disclosed in July that it had agreed to sell the Villa Florence, the company’s second big hotel sale in San Francisco this year, according to Globe St. It sold the Kimpton Sir Francis Drake Hotel in April for about $158 million, the report noted.
AWH co-founder Jon Rosenfeld said the firm “felt now, during a period of transition, was an ideal time to get into the market.”
Spire Hospitality has taken over management and renovations are expected to take over a year, and be completed by the end of 2022.
In the nearby Transbay District, a mixed-use tower at 550 Howard Street recently secured Rosewood Hotel and Resorts for a 180-room hotel in the tower. Construction is expected to take four years.