BETHESDA, MD-Pebblebrook Hotel has acquired the Doubletree Bethesda Hotel and Executive Meeting Center for $67.1 million. The purchase of the 269-room, full-service hotel was funded entirely with proceeds from the Pebblebrook’s IPO.
Built in 1971, the 15-story hotel underwent a $19.3-million renovation in 2006 and 2007. The company believes it has not fully stabilized from the 2007 renovations and anticipates investing an additional $2.5
million in improvements over the next 12 to 25 months. It also estimates the garage will need an additional $2.5 million in repairs. Pebblebrook is on an acquisition spree targeting the DC area, San Francisco, Minneapolis/St. Paul and Atlanta.
The trade is significant for the area as it represents another hotel sale--after a drought of such deals for a year or more. The Watergate Hotel recently traded for $45 million. Earlier this year, LaSalle Hotel
Properties acquired Sofitel Lafayette Square for $95 million. In an with GlobeSt.com at the beginning of the month, Marc Magazine, principal of the newly-established Humboldt Hospitality Advisors said there would be several hotel assets coming onto the market--with three well-located, limited-service hotels coming online within the next 30 days.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
