SAN FRANCISCO-Ashford Hospitality Trust has sold the JW Marriott San Francisco Union Square Hotel for $96 million to Thayer Lodging Group. The pricing equates to a 3.7% capitalization rate.
Cushman & Wakefield Sonnenblick Goldman served as the exclusive financial advisor to Ashford Hospitality Trust. Built in 1987 and recently renovated at a cost of approximately $22 million, the JW Marriott San Francisco Union Square Hotel is now positioned as one of the premier luxury branded properties in the Bay Area, according to a prepared statement.
“The San Francisco lodging market is rebounding strongly and there is upside to the operating performance,” says Stephen O’Connor, senior director of Cushman & Wakefield Sonnenblick Goldman’s Los Angeles office. “The offering appealed to a wide spectrum of international hotel investors given the recent comprehensive renovation, high-end market positioning, superior location, and extremely high barriers to entry in this gateway market.”
Located at the corner of Post and Mason Streets in the Union Square district of San Francisco, the landmark 21-story atrium hotel was designed by architect John Portman. The AAA four-diamond hotel is branded and managed by Marriott International and is located within walking distance to world famous destinations such as Chinatown, Nob Hill, the Theater District, the Financial District and Embarcadero, and the Moscone Convention Center.
“This was a very competitive sale process and ultimately Thayer presented, and flawlessly executed, the most compelling proposal that met the seller’s objectives,” says Rob Stiles, executive vice president and head of Cushman & Wakefield Sonnenblick Goldman’s west coast operations. “This is a well-timed strategic entry into the market for Thayer and we expect that they will be long term owners of this trophy asset.”
The hotel has 337 large guestrooms, including eight suites, with every guest bathroom featuring separate shower and tub; 14,000 square feet of meeting and event space, including a 4,350-square-foot ballroom and conference center; and two food and beverage facilities. The property is owned under a ground lease, which has a term expiring in 2083.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
