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SAN FRANCISCO-Pebblebrook Hotel Trust of Bethesda, MD hasacquired the 416-room Sir Francis Drake Hotel in Union Square froma partnership led by the San Francisco-based Chartres Lodging GroupLLC for $90 million, funding the buy with IPO proceeds. Pebblebrooksays that it anticipates investing approximately $7 million overthe next 12 to 24 months on guest room and meeting spacerefurbishments and is "evaluating the implementation of severalvalue-creation opportunities at the property." The REIT says thatthe hotel will continue to be managed by Kimpton Hotels &Restaurants, which has managed it since 2002.

Pebblebrook chairman, president and CEO Jon Bortz calls theproperty "one of San Francisco’s most recognizable hotels,” sayingthat San Francisco is one of Pebblebrook's top markets. RobertKline, president and co-founder of the Chartres Lodging Group, saidthat the seller "considered numerous offers, but chose to transactthe property with Pebblebrook because they recognized theproperty’s significant potential given its strong location.”