News for the Hospitality Executive |
Pebblebrook Hotel Trust Acquires 254-room Skamania Lodge
in Stevenson, Washington for $55.8 million
Destination
Hotels & Resorts Will Continue as Management Company
November 4, 2010 - Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that it has acquired Skamania Lodge from Lowe Enterprises Investors acting on behalf of a pension fund client for $55.8 million. The 254-room, upper-upscale, full-service lodge is located outside of Portland, Oregon on the Columbia River Gorge in Stevenson, Washington. The conference resort features the Waterleaf Spa and Fitness Center, the Skamania Lodge Golf Course and approximately 22,000 square feet of meeting space. The property will continue to be managed by Destination Hotels & Resorts. The transaction was funded entirely with available cash. “We are thrilled to acquire this unique lodge and conference resort,” said Jon Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “Skamania boasts high-quality facilities and a spectacular location that offers a wide array of recreational activities. Its close proximity to Portland makes Skamania a popular destination for both the leisure transient and the corporate group markets. This property has historically performed very well and our ability to acquire it at such a deep discount to replacement cost is an exciting opportunity for us.” Skamania Lodge is located just 45 miles east of the metropolitan area of Portland, Oregon in Stevenson, Washington in Skamania County. Skamania County includes exceptional natural attractions such as Mount St. Helens, Multnomah Falls, Mount Hood, Beacon Rock and the Columbia River Gorge. In addition, the area is a popular destination for numerous outdoor activities including windsurfing, kayaking, golfing, boating, hunting, skiing and fishing. The property benefits from an extensive transportation network allowing for easy access to the property and strict zoning and ordinance laws that prohibit new development in the area. Skamania Lodge is located within the highly protected national scenic area of the Columbia River Gorge, which presents significant barriers to entry for any future resort or conference center development. Built in 1993 and expanded in 2002, Skamania Lodge is a four-story building built in the tradition and spirit of the rustic Northwest, utilizing Grand Lodge-style architecture. The property has been well maintained, with approximately $4.5 million invested in capital improvements since 2007. Skamania Lodge encompasses over 175 acres along the banks of the Columbia River. The meeting and event space includes approximately 22,000 square feet of International Association of Conference Centers (“IACC”) certified indoor meeting space spread over 23 rooms, including two ballrooms, approximately 4,000 square feet of pre-function space and approximately 44,000 square feet of outdoor event space. Additionally, Skamania Lodge features an 18-hole, par 70 golf course, the full-service Waterleaf Spa and Fitness Center, a business center, heated indoor swimming pool, indoor/outdoor whirlpool spas, two tennis courts, a basketball court and miles of hiking and biking trails. Skamania’s 254 rooms, 11 of which are suites, offer one-of-a-kind views of the Cascade Mountains and the Columbia River Gorge. The hotel features original artwork, a grand 85-foot fireplace in the lobby and an approximately 7,000-square foot ballroom. The property offers three distinct dining outlets, the Cascade Room, an award-winning three-meal-a-day restaurant that features Pacific Northwest fare, the lighter and more casual River Rock Restaurant and seasonal dining near the golf course at The Greenside Grill. In 2009, Skamania Lodge operated at approximately 48% occupancy, with an average daily rate of approximately $149. During the next 12 months, the Company currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization (“EBITDA”) of approximately $4.6 to $4.9 million and net operating income after capital reserves of approximately $3.9 to $4.2 million. The hotel will continue to be managed by Destination Hotels & Resorts, which has managed the property since 2005. Destination Hotels & Resorts is a wholly owned subsidiary of Lowe Enterprises and a national operator that specializes in managing and marketing high-quality independent properties. “Destination has a great understanding of, and excellent experience with, operating unique, independent resorts and conference centers,” continued Mr. Bortz. “Their knowledge of the market and their vision for the future of the property gives us great confidence in retaining them as the operator. We believe their approach to the property will maximize its long-term value while yielding positive results in the near future.” The Company expects to incur approximately $0.4 million of costs related to the acquisition of this hotel that will be expensed as incurred. The Skamania Lodge marks the sixth acquisition for the Company since completing its initial public offering in December 2009. The Company has previously announced executed agreements to purchase two additional hotels:
Closings for these properties are expected to occur within 60 days from the filing date of the corresponding Current Report on Form 8-K. However, because these acquisitions are subject to customary closing requirements, conditions and due diligence, the Company can give no assurance that the transactions will be consummated during that time period, or at all.
About Pebblebrook Hotel Trust |
Pebblebrook Hotel Trust is a publicly traded real estate investment
trust (“REIT”) organized to opportunistically acquire and invest
primarily in upper-upscale, full-service hotels located in large urban
and resort markets with an emphasis on the major coastal cities. The
company owns six hotels, with a total of 1,684 guest rooms.
About Lowe Enterprises Investors | Los
Angeles-based Lowe Enterprises Investors provides real estate
investment management services on behalf of a select list of
institutional and high net worth clients and partners through both
individually managed and commingled fund relationships. The firm has
been responsible for $6 billion in real estate assets, including
commercial, hospitality and debt investments, since inception in the
late 1980s. Lowe Enterprises Investors has been a leading value-added
investor through multiple cycles, employing equity and structured debt
in its investment strategies.
About Destination Hotels & Resorts |
Destination Hotels & Resorts began in 1972 with the development and
management of condominium resorts. Since then, the company has grown to
become consistently ranked as one of the top ten hospitality management
companies in the country (ranked by Hotel Business Magazine), with more
than 7,100 employees, over 7,000 hotel rooms and condominium units and
more than $2.2 billion in assets under management. Destination Hotels
& Resorts is a wholly owned subsidiary of Los Angeles-based Lowe
Enterprises, a privately held, national real estate organization active
in commercial and hospitality property investment, management and
development.
This press release contains certain
“forward-looking” statements relating to, among other things, potential
property acquisitions and projected earnings, expenses and demand.
Forward-looking statements are generally identifiable by use of
forward-looking terminology such as “may,” “will,” “should,”
“potential,” “intend,” “expect,” “seek,” “anticipate,” “estimate,”
“approximately,” “believe,” “could,” “project,” “predict,” “forecast,”
“continue,” “plan” or other similar words or expressions.
Forward-looking statements are based on certain assumptions and can
include future expectations, future plans and strategies, financial and
operating projections or other forward-looking information. Examples of
forward-looking statements include the following: projections of
hotel-level EBITDA and net operating income after capital reserves, the
Company’s expenses, share count or other financial items; descriptions
of the Company’s plans or objectives for future operations,
acquisitions or services; projected completions of acquisitions;
forecasts of the Company’s future economic performance and potential
increases in average daily rate, occupancy and room demand; and
descriptions of assumptions underlying or relating to any of the
foregoing expectations regarding the timing of their occurrence. These
forward-looking statements are subject to various risks and
uncertainties, many of which are beyond the Company’s control, which
could cause actual results to differ materially from such statements.
These risks and uncertainties include, but are not limited to, the
state of the U.S. economy, supply and demand in the hotel industry and
other factors as are described in greater detail in the Company’s
filings with the Securities and Exchange Commission (“SEC”), including,
without limitation, the Company’s Prospectus filed pursuant to Rule
424(b)(1) on July 23, 2010. Unless legally required, the Company
disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise. For
further information about the Company’s business and financial results,
please refer to the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Risk Factors” sections of the
Company’s SEC filings, including, but not limited to, its Annual Report
on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be
obtained at the Investor Relations section of the Company’s website at
www.pebblebrookhotels.com and www.sec.gov. All information in this
release is as of November 3, 2010. The Company undertakes no duty to
update the statements in this release to conform the statements to
actual results or changes in the Company’s expectations. The Company
assumes no responsibility for the contents or accuracy of the
information on any of the non-Company websites mentioned herein, which
are included solely for ease of reference.
|
Contact:
Pebblebrook Hotel Trust |