Pebblebrook Hotel Trust has acquired the W Los Angeles – Westwood hotel in Los Angeles, California, US for $125m.
The 258-room hotel will be managed by Starwood Hotels and Resorts. Starwood also manages two of the company’s other hotels, the Westin Gaslamp Quarter hotel in San Diego, California and W Boston in Boston, Massachusetts.
Jon Bortz, Pebblebrook Hotel Trust chairman, president and chief executive officer, said the hotel is located adjacent to UCLA and Westwood Village, a popular Los Angeles’ shopping, dining and entertainment destination.
"Steady demand growth along with a historically highly constrained supply environment, provide excellent operating fundamentals for the market and the hotel," Bortz added.
The hotel features outdoor areas, as well as WET, a heated pool and cabana filled relaxation area, The Backyard poolside bar and restaurant, 3,300ft² of indoor meeting space, Bliss Spa, SWEAT fitness centre and a 132-space parking garage.
The hotel also offers two food and beverage venues including NineThirty, a full-service restaurant, and Whiskey Blue, a music-oriented bar.
W Los Angeles – Westwood, which operated at 84% occupancy in 2011, is currently forecasted to generate earnings before interest, taxes, depreciation and amortisation (EBITDA) of $8.3m to $8.8m during the next one year.
US-based Pebblebrook Hotel Trust and Starwood plan to renovate the NineThirty restaurant, the ground floor lobby, lobby bar and public space, as well as upgrade and refurbish the meeting space, pool area and The Backyard.
It is expected that the company would incur about $0.5m of costs related to the acquisition of the W Los Angeles – Westwood hotel that will be expensed as incurred.
The acquisition takes the total number of properties in the Pebblebrook’s portfolio to 24, and represents the company’s third investment in the Los Angeles market.
Image: In 2011, the 258-room W Los Angeles – Westwood operated at 84% occupancy.