The company funded this acquisition with cash on hand and proceeds from its senior unsecured revolving credit facility.
The 257-room resort includes a 3,000ft² spa with nine treatment rooms, around 80,000ft² of indoor and outdoor event space, 3,200ft² waterside pavilion and two waterside eateries – Pineapple Club and Showfish Newport.
Other amenities include a coffee shop, a lobby bar, an indoor and outdoor pool with cabanas, a fitness centre and a seasonal ice-skating rink.
Pebblebrook CEO, chairman and president Jon Bortz said: “Gurney’s Newport is the only resort-style property in Newport, and it is one of the very few true waterside resorts on the Northeastern Seaboard, drawing strong demand from New York, Boston and Providence.”
Following the transaction, Pebblebrook is considering adding several operating and physical improvements to reposition the resort, enhance guest experience and boost cashflow.
Other potential enhancements include renovation of guestrooms, bathrooms, restaurants, bars, lobby, arrival experience and landscaping.
Additionally, the plan includes relocating the spa, adding a market, upgrading the Grand Ballroom, South Lawn and outdoor pavilion spaces.
Pebblebrook also has the right to buy the resort’s 22-slip full-service marina in 2027.
Gurney’s Newport will become part of Curator Hotel & Resort Collection.
As per May 2022 trailing-12-month performance, total revenue per available room generated by the resort was $401, earnings before interest, taxes, depreciation, and amortisation were $13.6m and net operating income was $12.1m, after a 4% capital reserve.
With latest acquisition, Pebblebrook’s portfolio now includes 55 properties, of which 13 are lifestyle resorts.
In April this year, Pebblebrook said it agreed to buy independent luxury resort property, Inn on Fifth, in Naples, Florida, US.