STEVENSON, WASHINGTON Pebblebrook Hotel Trust has acquired the 254-key Skamania Lodge from Lowe Enterprises Investors for US$55.8 million, funded entirely with available cash.
The upper-upscale conference resort is located 45 miles east of Portland, Oregon, on the Columbia River Gorge. The property will continue to be managed by Destination Hotels & Resorts.
“We are thrilled to acquire this unique lodge and conference resort,” says Jon Bortz, chairman, president and CEO of Pebblebrook Hotel Trust. “Skamania boasts high-quality facilities and a spectacular location that offers a wide array of recreational activities. Its close proximity to Portland makes Skamania a popular destination for both the leisure transient and the corporate group markets. This property has historically performed very well and our ability to acquire it at such a deep discount to replacement cost is an exciting opportunity for us.”
Skamania marks the sixth acquisition for Pebblebrook since completing its initial public offering in December 2009. It has previously announced executed agreements to purchase two additional hotels: US$80 million for a hotel in the Philadelphia and US$102.8 million for a hotel in Los Angeles; neither property has been identified publicly.
Skamania Lodge operated last year at 48% occupancy with an ADR of US$149. During the next 12 months, the hotel is expected to generate EBITDA of approximately US$4.6 million to US$4.9 million and net operating income after capital reserves of approximately US$3.9 to US$4.2 million.
Built in 1993 and expanded in 2002, Skamania is a four-story building built in the tradition and spirit of the rustic Northwest, utilizing Grand Lodge-style architecture. The property has been well maintained, with approximately US$4.5 million invested in capital improvements since 2007. Skamania Lodge encompasses more than 175 acres along the banks of the Columbia River.
Skamania County includes exceptional natural attractions such as Mount St. Helens, Multnomah Falls, Mount Hood, Beacon Rock and the Columbia River Gorge. In addition, the area is a popular destination for numerous outdoor activities including windsurfing, kayaking, golfing, boating, hunting, skiing and fishing. The property benefits from an extensive transportation network allowing for easy access to the property and strict zoning and ordinance laws that prohibit new development in the area.