Pebblebrook Resort Trust has obtained the 369-place oceanfront Margaritaville Hollywood Beach Vacation resort in Hollywood, FL, for $270 million from an affiliate of KSL Money Associates LLC. The life-style resort will go on to be managed by Davidson Hospitality Team.
Margaritaville Hollywood Seashore Resort, the brand’s flagship property, is situated on 6.2 oceanfront acres, alongside 450 linear ft of immediate seaside frontage, and is the focal position of the Hollywood Seaside Boardwalk. The resort was designed in 2015 and options 369 guestrooms, like 43 suites and more than 30,000 sq. ft. of indoor and outdoor event room for leisure and corporate teams overlooking the Atlantic Ocean. The vacation resort also characteristics eight relaxed and upscale eating venues. Additional facilities involve the 11,000-sq.-ft. St. Someplace Spa, Health and fitness and Salon, various out of doors swimming swimming pools, 22 comprehensive-provider cabanas, the Flowrider Surf Simulator, the Parakeets Kid’s Club and several outside leisure venues.
“We’re thrilled to obtain this irreplaceable, life style beachfront vacation resort in the rising South Florida marketplace, which is recognized as Margaritaville’s flagship assets on the East Coast,” mentioned Jon Bortz, chairman/CEO, Pebblebrook Lodge Believe in. “This leading life style resort draws in both equally leisure and company team prospects who search for a unique laid-back again encounter with a extensive array of restaurant, bar and leisure venues. In addition, Margaritaville’s strategic oceanfront locale on the Hollywood Boardwalk would make it a pure vacation spot for inhabitants and tourists in the South Florida current market.”
Next the acquisition, Davidson now operates six of Pebblebrook’s houses.
“We are energized to spouse with Davidson on another one of a kind vacation resort,” ongoing Bortz. “Davidson has extensive practical experience working high-top quality vacation spot resorts, which include our legendary Paradise Position Vacation resort in San Diego, which we are focusing on to change to Margaritaville’s West Coastline flagship resort. Davidson also operates our Solamar San Diego, which is slated to turn into a Margaritaville downtown urban resort. The Davidson team has a deep comprehending of the Margaritaville model and client, making them a purely natural companion for Margaritaville Hollywood Beach Resort, which we think has incredible upside.”
Pebblebrook is assessing many functioning and physical enhancements for more upside chances and enhanced dollars stream. This involves introducing guestrooms expanding the restaurant and bar offerings reimagining the merchandising and quality of the retail space and building more earnings-producing venues from underutilized indoor and outside areas and places. The resort will also develop into component of Curator Hotel & Vacation resort Selection, which is anticipated to final result in a wide array of price reductions and increased engineering and functioning initiatives for the resort.
For full-yr 2021, adhering to a sluggish start to the year due to the pandemic, Margaritaville Hollywood Beach Vacation resort is forecasted to produce involving $475 and $480 of whole RevPAR. The resort is predicted to deliver resort EBITDA of $16.8 million to $17.2 million and lodge internet working earnings, right after a 4% cash reserve, of $14.3 million to $14.5 million.
The acquisition provides the full amount of attributes in the company’s portfolio to 52, which includes 10 travel-to, independent life style resorts.
The company funded the acquisition with somewhere around $108.5 million of income on hand, and assumed the $161.5 million of existing non-recourse, secured personal debt. The credit card debt matures in May possibly 2022 and supplies for up to two 1-yr extensions to May possibly 2024. The interest price on the debt is floating at a existing all-in fee of around 2.5%. The organization might pre-pay the personal debt at any time with out penalty.
Following the acquisition, Pebblebrook will have liquidity of approximately $800 million, like an believed $160 million of consolidated cash, funds equivalents and limited cash in addition to $644.2 million of undrawn availability on its senior unsecured revolving credit history facility.