BETHESDA, Md.–Pebblebrook Hotel Trust (NYSE:PEB) (the “Company”) today announced that it has acquired LaPlaya Beach Resort, a 189-room, waterfront, luxury resort and LaPlaya Beach Club, a private members club located at the resort, (together, “LaPlaya”) for a combined purchase price of $185.5 million.
“We’re thrilled with the opportunity to expand our portfolio into the thriving market of Naples, Florida with the acquisition of LaPlaya,” said Jon Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust. “The resort is uniquely located on the beach and within one of the most affluent coastal resort communities in the country, offering a full array of best-in-class amenities, dining and shopping venues and dozens of world-renowned golf courses.”
LaPlaya Beach Resort is a 189-room, luxury, full-service resort that sits on 6 acres of beachfront property surrounded by stunning views of the Gulf of Mexico and Vanderbilt Bay. The resort was originally built in 1968 and underwent a comprehensive, $54.0 million renovation and redesign in 2002, adding an additional tower, the private beach club and a large parking structure. The hotel’s meeting facilities feature both indoor and outdoor event space, for a combined total of 11,620 square feet. The resort offers several food and beverage options including the widely-acclaimed Baleen, which provides sunset views and a “toes in the sand” experience and whose menu is modern, seafood-focused and locally inspired. The Tiki Bar offers a wide selection of beverages, craft cocktails and snacks, available via butler service to the beach. Furthermore, the resort’s 4,500 square foot spa, SpaTerre, provides a full menu of upscale spa and wellness treatments. The resort also includes three outdoor swimming pools, a 2,200 square foot fitness center, a 7-story parking garage with 310 spaces, a children’s aquatic and beach camp, watersport rentals and in-room dining. The acquisition also includes the leasehold interest in a 23-slip marina on the Vanderbilt Bay side of the property.
In addition to the acquisition of the resort, the Company also purchased the LaPlaya Beach Club (the “Club”), which has grown to become one of the most notable private clubs in Florida. The Club provides the Company with a strong revenue stream through initiation fees and annual membership dues, while also generating significant ancillary spend at the resort by its members. The Club boasts over 800 current active members and provides a club members’ private dining room, private pool cabanas, and an exclusive agreement with the LaPlaya Golf Course to provide Club members and hotel guests with golf access and privileges. The LaPlaya Golf Course is not included in the transaction.
For the year ended December 2014, LaPlaya operated at 77 percent occupancy, with an average daily rate (“ADR”) of $337 and room revenue per available room (“RevPAR”) of $261. During the next 12 months, the Company currently forecasts that the property will generate earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $14.3 to $15.3 million and net operating income after capital reserves (“NOI”) of $12.5 to $13.5 million.
LaPlaya will continue to be managed by Noble House Hotels & Resorts under a new operating agreement.
“Noble House has a great understanding of, and excellent experience with operating unique, world-class, casual luxury, boutique resorts,” continued Mr. Bortz. “We’re pleased to be building a strategic relationship with the team who we’ve worked with previously, and we look forward to collaborating with them to unlock the many opportunities that exist at LaPlaya. With the addition of Noble House Hotels & Resorts, we now have 15 third party managers operating our hotels throughout our portfolio.”
“We are excited to be partnering with Pebblebrook Hotel Trust,” said Noble House Hotels & Resorts’ Founder and Chairman, Patrick Colee. “We believe that LaPlaya offers tremendous growth potential, and we are eager to create additional value at this exceptional property.”
The Company expects to incur approximately $1.3 million of costs related to the acquisition of the hotel.
The acquisition of LaPlaya Beach Resort brings the total number of properties in the Company’s portfolio to 36 and marks the Company’s first investment in Naples, Florida.
