SEATTLE-Fresh off of its $110 million acquisition of the Westin Gaslamp Hotel in San Diego, the Bethesda, MD-based Pebblebrook Hotel Trust has acquired the 189-room Hotel Monaco at the corner of Fourth Avenue and Spring Street for $51.2 million. Pebblebrook bought the full-service, boutique hotel in the central business district of Downtown Seattle from Kimpton Hotels & Restaurants, which will continue to manage the property.

In 2010, the Hotel Monaco operated at 81% occupancy, with an average daily rate of $147, and RevPAR of $119, a decline of approximately 27% from the property’s previous RevPAR peak in RevPAR in 2007. Pebblebrook forecasts that the hotel will generate EBITDA of approximately $2.8 million to $3.1 million over the next 12 months, and NOI after capital reserves of approximately $2.3 million to $2.6 million.

The Maryland-based REIT expects to begin a $3-million room renovation in the fourth quarter of this year, with completion expected by the end of the first quarter of 2012. “The company expects these improvements to allow the hotel to regain its previous competitive positioning by substantially outperforming the market’s recovery in 2012 and beyond,” Pebblebrook said in announcing the acquisition.

Jon Bortz, Pebblebrook’s chairman, president and CEO, noted that the hotel is close to Pike Place Market, one of the nation’s longest-running farmers markets and an attraction of Seattle that draws approximately 10 million visitors annually. In addition, the hotel is within a short walk of historic Pioneer Square, the Washington State Trade & Convention Center and five of Seattle’s largest office buildings.

The Hotel Monaco was originally constructed in 1969 as the Pacific Northwest Bell office building. Kimpton converted the property to a hotel in 1997.