By Meghan Hall
Maryland-based Pebblebrook Hotel Trust has executed a contract to sell the Villa Florence San Francisco on Union Square Hotel. According to a statement from the company, the deal is valued at $87.5 million, or about $462,963 per room, and the buyer is an unaffiliated third party.
The four-star hotel is located at 225 Powell St. In all, the hotel totals 189 guest rooms and features amenities such as event space and conference rooms.
In March of this year, Pebblebrook completed a multi-million renovation of the rooms, all of which feature a contemporary, Italian-inspired design, according to a news release. The renovations also added seven new rooms. Rooms feature Florentine touches and neutral color palettes. A second phase of upgrades intended to tackle the lobby and other public spaces.
“A landmark dating back to 1908, Villa Florence is located along the Powell Street Cable Car Line, and walking distance to Chinatown and Moscone Center,” the hotel’s website states. “Our eye-catching urban retreat blends European flair with the dynamic energy of our major metropolitan city, the perfect destination for leisure, business and group travelers.”
Pebblebrook originally purchased the property as part of a partnership with LaSalle Hotel Properties in 2018 for $67.2 million, or $369,230 per room. This latest sale is expected to close during the third quarter, according to the company, and is subject to normal closing conditions.
The sale of the Villa Florence comes just several months after Pebblebrook completed its disposal of the Sir Francis Drake Hotel, also in San Francisco. Pebblebrook sold the 416-room property for $157.6 million, or about $378,846 per key. Pebblebrook originally acquired the asset for $90 million in 2010.
As of April, Pebblebrook has worked to reopen its hotels in San Francisco, which include the Argonaut Hotel, the Harbor court Hotel and Hotel Zelos. The company’s portfolio focuses on West Coast gateway cities. To date, Pebblebrook owns 52 hotels in 14 urban markets, according to its website.