Pebblebrook Hotel Trust, a real estate investment trust based in Bethesda, Md., has acquired San Francisco's Hotel Milano for $30 million.
The 108-room hotel, located in the South of Market/Convention Center section of downtown San Francisco, was built in 1913. Pebblebrook plans to invest between $8 million and $10 million over the next 12 months in a complete renovation and repositioning of the hotel, including all guestrooms, public areas and the restaurant. The company plans to rename the property upon completion of the renovation. Los Angeles-based Viceroy Hotel Group will manage the property.
The acquisition of the Milano brings the total number of properties in the company's portfolio to 21, comprising $1.7 billion of invested capital since Pebblebrook completed its initial public offering in December 2009.
‘We are extremely excited to acquire the Hotel Milano in the highly desirable and resurgent San Francisco market,’ says Jon Bortz, chairman and CEO of Pebblebrook. ‘San Francisco was one of the strongest hotel markets in the country during 2011, and we expect the robust economic and lodging recovery to continue in San Francisco in 2012 and beyond.’