Starwood Hotels & Resorts Worldwide, Inc. today announced that it has sold The Westin Gaslamp Quarter to a wholly-owned subsidiary of Pebblebrook Hotel Trust, for $110M, with a commitment of approximately $23 million in property enhancements to be completed prior to the end of 2012 for a total investment in the property of $133M. The sales price represents a multiple of approximately 14 times anticipated 2011 Hotel EBITDA exclusive of the capital commitment. Starwood will continue to operate the hotel under its upper-upscale Westin flag and will maintain a 20-year management agreement with two ten- year extension options, exercisable by Starwood. The Westin Gaslamp Quarter will continue to serve guests throughout the transition and provide the signature services and amenities the Westin brand is renowned for at the heart of San Diego’s vibrant Gaslamp Quarter historic district.
As part of the transaction, Pebblebrook Hotel Trust has committed to invest approximately $23 million in property enhancements to The Westin Gaslamp Quarter to continue the hotel’s comprehensive renovation, which began in November 2010 and is scheduled to be completed in 2012. All guestrooms have recently completed floor-to-ceiling renovations, which will be followed by major upgrades to the hotel’s meeting facilities. The last phase of the renovation will be the complete redesign and re-launch of the hotel’s public areas, restaurant and lobby bar creating a significantly enhanced arrival experience for guests.
“Starwood’s decision to sell The Westin Gaslamp Quarter is reflective of our asset-light strategy,” said Simon Turner, President of Global Development, Starwood Hotels & Resorts Worldwide, Inc. “We continue to pursue opportunities to sell our owned real estate at the right time to the right owners in the best interest of shareholders. Pebblebrook shares our vision for the property and we look forward to close collaboration with this high-quality, experienced hotel owner.”
The Westin Gaslamp Quarter is ideally situated in a prime location at the heart of San Diego’s lively historic quarter, just steps from a variety of shops, restaurant, theaters, art galleries and night clubs. Nearby attractions include the San Diego Zoo, the Maritime Museum of San Diego, and Coronado Island. Just three miles from San Diego International Airport, the hotel is also convenient to the San Diego Convention Center and numerous corporate offices including Lockheed Martin, Bank of America and Capital One.
The hotel offers 450 guest rooms, including eight suites, and more than 27,000 square feet of indoor meeting space including a 9,000 square foot ballroom and outdoor function space. Additional facilities include an outdoor pool, two restaurants and a café, and an on-site indoor parking facility.