WASHINGTON, DC-Bethesda, MD-based Pebblebrook Hotel Trust has closed on its pending acquisition of Hotel Monaco in the District. As reported earlier, the acquisition is priced at $74 million.
That comes as little surprise to industry watchers: after a dearth of nearly two years of deals, a recent flurry of acquisitions have established the $400,000 per key price point as a floor for full service hotels. LaSalle Hotel Properties’ $95-million acquisition of Sofitel Lafayette Square kicked off the activity.
Other trades that have since followed include the sale of the Fairview Park Marriott to a partnership organized by Thayer Lodging Group. Pebblebrook Hotel made an earlier acquisition here of the Doubletree Bethesda Hotel and Executive Meeting Center for $67.1 million. The Watergate Hotel traded for $45 million, acquired by Euro Capital Partners.
Hotel Monaco is 183-room luxury hotel that opened in 2002. Kimpton Hotels and Restaurants has been the property manager since it opened, and will continue in that role under the new owner.
“Activity in the metro area is still very strong,” Marc Magazine, who recently opened the doors on McLean, VA-based Humboldt Hospitality Advisors with former CB Richard Ellis colleagues Tom Baker and Dave Durbin, tells GlobeSt.com. “There is more money looking for assets than there are assets available.” He points to last week’s closing of Hampton Inn on 6th Street and Massachusetts Avenue, which sold for $325,000 per key, as another example.
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