|By Paul Schweizer, The Philadelphia
InquirerMcClatchy-Tribune Regional News
Dec. 03, 2010--The Philadelphia Sofitel Hotel, an upscale 306-room hotel near Rittenhouse Square, has been sold for $87 million to a real estate investment trust.
The buyer, Pebblebrook Hotel Trust, Bethesda, Md., which announced the deal today, said the price includes the assumption of a $56.1 million loan.
The seller was South 17th Street Ownerco, a private equity firm.
The hotel, at 120 S. 17th St., occupies a building that once housed the Philadelphia Stock Exchange. In 2009, Pebblebrook said, the hotel had a 77 percent occupancy rate and an average daily room rate of $169.
Pebblebrook said the hotel is expected to generate operating earnings of $3.8 million to $4.4 million over the next 12 months.
The hotel has been managed by Sofitel (Accor SA), which will continue as manager. -- Paul Schweizer
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