LOS ANGELES—Pebblebrook Hotel Trust has acquired the Hotel Palomar Los Angeles, Westwood for $78.7 million. The 264-unit hotel is a Kimpton Hotel and Restaurant-managed property, and will remain a Kimpton-managed property through the change in ownership. This is the company's fifth California hotel purchase and its 10^th Kimpton Hotel purchase.

According to Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust, the company purchased the property because it of its ideal location on the corner of Wilshire Blvd. and Selby Ave. and the “healthy economic environment in West Los Angeles, which has benefitted from increased international inbound travel, provides excellent long-term operating fundamentals for the hotel.”

Pebblebrook Hotel Trust purchased the hotel with a leasehold interest in the property through a ground floor lease, which will expire in 2107, assuming that all the lease extension options are exercised. Over the last 12 months, the hotel had an average of 87% occupancy. The hotel charged an average room rate of $207 and has a RevPAR of $180 per available room. Next year, the company expects to generate $5.2 to $5.7 million in gross earnings and a net operating income of $4.2 to $4.7 million after capital reserves.

The hotel's 264 guestrooms average 380 square feet. Onsite amenities at the property include a 40-foot swimming pool with food and beverage service, a fitness center with floor-to-ceiling windows, a restaurant called BLVD 16 and a parking garage. For business guests, the hotel also offers a 24-hour business center and eight meeting rooms. Pebblebrook estimates that it will spend approximately $500,000 on costs related to the acquisition. The company did not respond to a request for comment.