Pebblebrook Hotel Trust
), a real estate investment trust, declared that it has purchased
Hotel Modera for $47.5 million. This urban, boutique, upper
upscale, full service hotel comprising 174 rooms is situated at
downtown Portland, OR. Moreover, OLS Hotels and Resorts would act
as the manager of the property.
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As per the transaction, Hotel Modera's secured, non-course loan
worth $23.7 million would now be repaid by Pebblebrook Hotel
Trust. The loan carries a fixed rate of interest at 5.257%,
having a maturity date of Jul 2016. Further, the remaining
balance of the purchase price would be paid in cash terms by
Pebblebrook Hotel Trust.
Hotel Modera is advantageously located between 5th and 6th Avenue
on Clay Street with easy access to fine restaurants, art
galleries, museums and nightlife venues. Moreover, the hotel is
surrounded by major area corporate tenants US Bank, Wells Fargo,
NRC, Deloitte, Nike, Intel, Providence Health Systems, Portland
State University, among other top-tier institutions.
Hotel Modera was originally constructed in 1962. However, in
2008, it underwent extensive renovation and repositioning worth
$13.0 million. The hotel possess luxury and comfort along with an
elegant atmosphere that exhibits various pieces of local art,
stylish Carrera marble, black walnut floors and contemporary
Moreover, Modera Hotel's guest rooms are furnished with iPod
docking stations, 32-inch LCD flat screen TVs, pillow-top
mattresses and plush microfiber robes. The hotel also offers 3
meeting rooms spanning 2,000 square feet of space along with 2
private dining rooms spanning over 600 square feet of space.
Modera Hotel also has a contemporary Italian restaurant - Nel
Centro - that offers traditional Italian cuisine for breakfast,
lunch and dinner. Additionally, the hotel provides a business
center and sundry shop along with 72 valet parking spaces.
In 2012, Hotel Modera had 79% occupancy rate. The hotel had an
average daily rate (ADR) amounting to $135 and revenue per
available room of $106. Moreover, the hotel's earnings before
interest, taxes, depreciation and amortization (EBITDA) came in
at $3.8 million and net operating income after capital reserves
(NOI) came in at $3.5 million.
Pebblebrook Hotel Trust anticipates EBITDA in the range of $3.8 -
$4.3 million and NOI in the range of $3.4 to $3.9 million in
Further, Pebblebrook Hotel Trust anticipates incurring costs of
about $0.4 million in connection with the acquisition of the
hotel and an additional expense of $0.4 million associated with
the transition of a new management team.
The acquisition of Hotel Modera is Pebblebrook Hotel Trust's
third investment in the Portland area following the acquisition
of Hotel Vintage Plaza comprising 117 rooms in downtown Portland,
Ore. and Skamania Lodge comprising 254 rooms in Stevenson, Wash.
Moreover, the acquisition of Hotel Modera would increase the
total number of properties owned by Pebblebrook Hotel Trust to 28
including $2.2 billion of invested capital.
Pebblebrook Hotel Trust currently carries a Zacks Rank #3 (Hold).
Some better performing stocks worth considering include
Douglas Emmett Inc.
EastGroup Properties Inc.
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