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Pebblebrook Buys a W

BOSTON-Pebblebrook Hotel Trust is purchasing the W Boston for $89.5 million in another of a series of big hotel grabs for the REIT.

By Ryan Clark | Updated on June 10, 2011

BOSTON-Pebblebrook Hotel Trust has been keeping busy. Today it announced its purchase of the W Boston hotel for $89.5 million. The 235-room luxury, full-service hotel, built in 2009, was divested by Sawyer Realty Holdings.  Starwood Hotels and Resorts will continue to manage the hotel.

The W Boston boasts 5,000 square feet of indoor space, Bliss Spa, SWEAT gym and 24-hour room service, to name a few of the amenities. Located in the Theater District, the hotel has operated at roughly 75% occupancy on average and Pebblebrook is anticipating EBITA of $5.1 million to $5.6 million and NOI of $4 million to $4.5 million, after capital reserves. In a release, Jon Bortz, chairman and CEO of Pebblebrook says, “The hotel is ideally located at the convergence of Boston’s Back Bay, Financial District and Theatre District and is in close proximity to a number of high-quality demand generators that include class A office space, some of  Boston’s finest dining, upscale destination retail, theatres, medical and educational institutions and numerous cultural venues. As the hotel works towards stabilized operations after a strong inaugural 2010, we believe increased RevPAR penetration will occur as the property continues to push occupancy and rate as it benefits from improving fundamentals in the Boston market.

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