Pebblebrook Hotel Trust has acquired the Revere Hotel Boston Common, an attached 826-space parking garage and an adjacent land parcel for $260.4 million. The 356-room upper-upscale hotel, built in 1972, is located in Boston's Theater District.
The Revere Hotel was converted to an independent following a $29-million ($81,000 per key) renovation in 2012 that touched all areas of the hotel. The property includes a large amount of unique meeting and event space, totaling over 28,000 square feet. The Rooftop at Revere is a seasonal rooftop bar seven stories above street level.
The land parcel acquired offers a potential development opportunity that the REIT said it will evaluate to determine optimal development utilization in the future.
For the trailing 12months ended November 2014, the Revere Hotel operated at 87 percent occupancy, with an average daily rate (“ADR”) of $231 and room revenue per available room (“RevPAR”) of $202. In 2015, the Company currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $18.0 to $18.5 million and net operating income after capital reserves (“NOI”) of $16.2 to $16.7 million.
The company expects to incur approximately $0.5 million of costs related to the acquisition of the hotel.
The acquisition of the Revere Hotel brings the total number of properties in the Ccompany’s portfolio to 35 and marks the Company’s second investment in Boston.