The St. Regis San Francisco on market for $140 million24 May, 2013 By: David Eisen
The St. Regis San Francisco can be your's now for $140 million. That's what Starwood Hotels & Resorts is asking for the luxury SoMa district hotel at 125 3rd St., according to the San Francisco Business Times.
The hotel has 260 rooms, including 46 suites, and 15,000 square feet of meeting space. The price that Starwood is asking for is in the range of more than $530,000 per key.
The Business Times reports that the sale at that asking price would be the biggest in the Bay Area in quite a while, easily besting the San Francisco Mandarin Oriental, which sold for $390,000 a room in 2011, and the Fairmont, which sold for $325,000 a room last year.
San Francisco remains a destination for both leisure and business travel. For the week of May 12-18, STR reported that San Francisco/San Mateo had double-digit revenue per available room increases (+14 percent to $172.64).
Since 2010, transaction value has hit approximately $2.8 billion in the Bay Area, the Business Times said. The majority of transactions in San Francisco have been led by real estate investment trusts, followed by pension fund advisors and offshore capital, which accounted for about 20 percent of buyers, according Eastdil Secured managing director Louis Stervinou.
"The fundamentals have improved, and we’re seeing better income levels in hotels," Stervinou said at a panel hosted by the Urban Land Institute and as reported by the Business Times. "With all the liquidity in the market, we’re seeing more interest from opportunity funds that want to put their money in key markets."
Other Bay Area transactions include The Clift, which was purchased by an affiliate of Hospitality Properties Trust for $120 million earlier this year; the Hotel Rex, acquired for $29 million, the Hotel Palomar for $58 million and Blackstone Group’s purchase of the Parc 55 Wyndham for $235 million.
Other properties still on the market include the Ritz-Carlton (which is in contract, according to industry sources), Holiday Inn at Fisherman’s Wharf, Harbor Court and Triton Hotel.
Starwood has been looking to offload its owned assets and concentrate on its management fee business. In April it sold its W New Orleans-French Quarter for $25.5 million and before that the W Chicago Lakeshore and the W Los Angeles/Westwood for a approximately combined $260 million. It also sold the Manhattan at Times Square Hotel to affiliates of the Rockpoint Group for $275 million.
"As we generate cash either from ongoing operations or from the sale of additional real estate, that represents cash that can be returned to our shareholders," said Starwood's CEO, Frits van Paasschen.Topic : San Francisco, St. Regis
External Source : San Francisco Business Times
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