Originally constructed in 1928, the 23-story hotel includes 18,000 square feet of meeting space, a 24-hour fitness center, a 24-hour business center, off-site valet parking, Bar Drake in the hotel’s historic lobby and a Starbucks store. Pebblebrook says that the hotel has been well maintained, with approximately $23 million in capital investment since 2005, including the addition of the lobby bar, full modernization of the hotel’s HVAC system, full renovation of guestroom bathrooms and other guestroom upgrades.

During 2009, the hotel achieved occupancy of approximately 76%, with an average daily rate of approximately $139. During the next 12 months, the company forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization (“EBITDA”) of approximately $3.8 million to $4.3 million and net operating income after capital reserves of approximately $2.5 million to $3 million, both of which are well below the levels at which the hotel operated during 2007 and 2008.

Pebblebrook says that both it and Kimpton believe the hotel "has tremendous upside and will be working closely to realize its potential." The Downtown San Francisco hotel market has already begun to recover, exhibiting strong growth in 2010 as business travelers have gotten back on the road, according to Pebblebrook. The REIT cites Smith Travel Research data showing that room demand in the San Francisco–Market Street tract has increased 8.6% on a year-to-date basis through April as compared to the same period last year. Occupancy in the market on a trailing 12 months basis has climbed to 74.6%.