Publicly traded real estate investment trust Pebblebrook Hotel Trust has purchased the four-star Margaritaville Hollywood Beach Resort hotel in Florida, US for $270m.
Pebblebrook acquired the oceanfront property from an affiliate of private equity firm KSL Capital Partners.
The transaction was funded with around $108.5m of cash on hand and the company assumed the $161.5m of existing non-recourse, secured debt.
Located on 6.2 oceanfront acres between Miami Beach and Fort Lauderdale, the resort boasts 369 guestrooms including 43 well-appointed suites.
It also offers more than 30,000ft2 of both indoor and outdoor event space overlooking the Atlantic Ocean.
Dining venues include Jimmy Buffet’s Margaritaville, Landshark Bar & Grill, JWB Prime Steak and Seafood, 5 o’Clock Somewhere Bar & Grill, and Floridays Airstream Cafe.
Margaritaville Hollywood Beach Resort also features 11,000ft2 St. Somewhere Spa, fitness and salon, multiple outdoor swimming pools, 22 full-service cabanas and other entertainment venues.
Pebblebrook Hotel Trust chairman and chief executive officer Jon Bortz said: “We’re thrilled to acquire this irreplaceable, lifestyle beachfront resort in the growing South Florida market, which is known as Margaritaville’s flagship property on the east coast.
“This premier lifestyle resort attracts both leisure and corporate group customers who seek a unique laid-back experience with a wide array of restaurant, bar, and entertainment venues.
“In addition, Margaritaville’s strategic oceanfront location on the Hollywood Broadwalk makes it a natural destination for residents and tourists in the South Florida market.”
Hotel management firm Davidson Hospitality, which now operates six of Pebblebrook’s properties, will continue to manage the property even after the closing of the deal.
The hotel is expected to generate between $475 and $480 of total revenue per available room (TRevPAR) in fiscal 2021.
With this acquisition, Pebblebrook’s portfolio includes a total of 52 properties as well as ten drive-to, independent lifestyle resorts.
In July this year, the company purchased a four-star Jekyll Island Club Resort hotel in Georgia, US for $94m.