A Los Angeles real estate investor has paid $77 million for a century-old, 208-room boutique hotel near Union Square in San Francisco.
Stockdale Capital Partners bought The Marker Hotel at 501 Geary St., the San Francisco Business Times reported. The seller was Pebblebrook Hotel Trust, a real estate investment trust based in Maryland, the largest investor of San Francisco hotels.
The $77-million deal comes out to $370,192 per key.
It marks the third San Francisco hotel sale by Pebblebrook in the last 14 months.
In September, the publicly traded REIT sold the 189-room, century-old Villa Florence in Union Square for $87.5 million, or $462,963 per key.
In April 2021, Pebblebrook sold the 416-room, century-old Kimpton Sir Francis Drake Hotel for $157.6 million, after paying $90 million for it in 2010. The latest sale price came to around $377,000 per key, in line with the recent deal for the Villa Florence. The Kimpton St. Francis Drake has since been renamed the Beacon Grand.
The Bethesda-based real estate investor, which owns more hotels in San Francisco than any other firm, is riding one of the hottest years ever for hotel assets in the Bay Area and California, according to the Business Times.
Last year saw many deals with better pricing than before the pandemic. This year, San Francisco hotel occupancy reached a pandemic high of 67.2 percent in April, with an average daily room rate of $226.59.
Stockdale Capital Partners, which did not respond to requests for comment, announced two acquisitions so far this year: the 770,000-square-foot Shops at Northfield shopping center in Denver; and the Los Angeles Athletic Club, a 12-story hotel and recreation hub in Downtown Los Angeles.
In San Francisco, it owns the SOMA Grand Garage located in Mid-Market.center,
Pebblebrook sold the Beaux-Arts Marker Hotel, built in 1910 as the Bellevue, after it jettisoned plans for a $25-million renovation because of pandemic closures. A $27-million redevelopment of the Hotel Vitale at 8 Mission St. into the One Hotel San Francisco went ahead as planned. A $12-million makeover of the Villa Florence wasn’t finished when it was sold to AWH, which anticipates completion this year.
Both The Marker Hotel and another Pebblebrook hotel, the 236-room Hotel Spero at 405 Taylor St. were listed last year before being taken off the market in November, an unidentified source told the Business Times.
Pebblebrook Hotel Trust claims to be the largest owner of urban hotels and resorts in the U.S., with 54 hotels and resorts containing 13,400 rooms.
[San Francisco Business Times] – Dana Bartholomew
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