SAN FRANCISCO-Maryland-based Pebblebrook Hotel Trust has acquired the Radisson Hotel Fisherman's Wharf and Retail for $132.0 million. The 355-room hotel, which includes approximately 44,000 square feet of street retail space, is located in the heart of Fisherman's Wharf in San Francisco, CA. The property will be managed by Davidson Hotels & Resorts.

“We're very pleased with our acquisition of the Radisson Hotel Fisherman's Wharf and Retail, located in one of San Francisco's strongest submarkets,” said Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust. “This hotel benefits from an excellent location in the heart of Fisherman's Wharf, which is reflected in the hotel's consistently high occupancy levels and strong cash flows. The property's diversity of income streams, including the revenue from premier ground level retail space, coupled with a significant repositioning opportunity, makes the Radisson Hotel Fisherman's Wharf and Retail another terrific addition to our expanding portfolio.”

The Radisson Hotel Fisherman's Wharf and Retail occupies an entire block of San Francisco's Fisherman's Wharf, bordered by Jefferson, Mason, Beach and Powell Streets, across the street from Pier 39.

The hotel's immediate area along Jefferson Street is currently undergoing a $4.0 million beautification project, creating a pedestrian-friendly, outdoor plaza experience directly in front of the property, improving the experience for the over 25,000 people who visit the area each day.

Built in 1964 as a 250-room hotel with 14,000 square feet of retail space, the hotel expanded in 1999 with the construction of an additional 105 rooms and 30,000 square feet of retail space. The hotel was updated by a comprehensive $4.5 million renovation in 2012, offering contemporary guest rooms and a refreshed lobby. The hotel also features 1,720 square feet of meeting space and a newly renovated fitness center.

The retail space consists of twenty units, including food, convenience and tourist-focused retail and service providers.

In 2013, the Radisson Hotel Fisherman's Wharf is forecasted to operate at 89%  occupancy, with an average daily rate of $184, room revenue per available room. The property's retail space is currently 95% leased with an average rent per square foot over $100.

Pebblebrook plans to invest $18.0 to $20.0 million between 2014 and 2015 in a complete renovation and repositioning of the hotel, including all guest rooms and public areas, both interior and exterior. The property's design will be overseen by Dawson Design Associates, the same design team that repositioned the Company's Hotel Zetta, also in San Francisco.

The acquisition of the Radisson Hotel Fisherman's Wharf and Retail brings the total number of properties in the company's portfolio to 29, marks the company's fifth investment in San Francisco, and represents the Company's second investment in Fisherman's Wharf.