BETHESDA, Md.—Pebblebrook Hotel Trust announced that it has acquired the Embassy Suites San Diego Bay – Downtown for $112.5 million. The 337-suite, urban, upper upscale, full service hotel is located in downtown San Diego, Calif. The property will be managed by HEI Hotels and Resorts.
“We’re very excited about the acquisition of the Embassy Suites San Diego Bay – Downtown and the opportunity to further expand our presence in the highly desirable downtown San Diego market,” said Jon Bortz, chairman and chief executive officer of Pebblebrook Hotel Trust. “The strong leisure, group and convention demand for San Diego, particularly in this location along the waterfront, makes the Embassy Suites San Diego Bay – Downtown an excellent investment for our company.”
Built in 1988, the hotel was fully renovated in 2006 and completed a $3.5 million guest suites renovation in May 2012. The hotel features a 12-story atrium and panoramic views of San Diego Bay and the city. Standard suite amenities include two separate rooms, 37- or 42-inch flat screen high-definition televisions, microwave, mini refrigerator, coffee maker, dining table and chairs, sofa bed and high-speed wireless internet access. The hotel features approximately 5,000 square feet of meeting space, including the 2,032 square foot Monterrey Ballroom, an indoor heated swimming pool, and whirlpool and 3,411 square feet of leased retail space located on the ground floor. The hotel also offers PFC Bar & Grill, open daily from 11:00am until midnight, serving fresh seafood and offering a wide selection of spirits, wine and beer, including many of San Diego’s famous locally produced microbrews.
In conjunction with the acquisition of the Embassy Suites San Diego Bay – Downtown, the company has selected HEI as manager for the hotel.
“HEI has a strong presence in the San Diego market and has a great understanding of, and excellent experience with operating all-suite upper upscale properties,” continued Mr. Bortz. “We’re delighted to be developing a strategic relationship with HEI and look forward to working with them at the Embassy Suites San Diego Bay – Downtown. With the addition of HEI, we now have 10 third party managers operating our hotels throughout our portfolio. This improves our already diverse group of hotel management companies, while also enhancing our opportunities to expand our best practices and asset management initiatives.”
The acquisition of the Embassy Suites San Diego Bay – Downtown brings the total number of properties in the Company’s portfolio to 26, comprising $2.1 billion of invested capital.