BETHESDA, MARYLAND Pebblebrook Hotel Trust plans to spend an additional US$600 million this year on hotel acquisitions, on top of the 11 properties it has bought since December 2009.
The REIT—which this year has acquired W Boston Hotel, The Westin Gaslamp Quarter in San Diego and Hotel Monaco Seattle—says the transactions market is flush with golden opportunities too good to pass up.
“I’ve gone through five real estate cycles, and I have never seen a time where so many high-quality hotels are available to be purchased,” President and CEO Jon Bortz tells Bloomberg. “The number of those needing to sell has increased pretty much on a monthly basis. So, more assets are on the market today, and we expect that to continue over the course of the year.”
Pebblebrook netted US$226.3 million from the sale of 10.9 million shares earlier this month, and it will use the capital to fund the next round of acquisitions.
The REIT is primarily focused on upper-upscale hotels, concentrated in major U.S. coastal markets. It is targeting acquisition opportunities priced at 20% to 50% of replacement cost.