An award-winning mainstay hotel in a key San Francisco tourist destination will change hands before year’s end after selling for millions.
The 221-room Hotel Zoe Fisherman’s Wharf has been sold, according to Pebblebrook Hotel Trust. A contract for the sale announced Monday lists the sale price at $68.5 million to an unnamed third party.
The hotel, at 425 North Point St., is a block from the Taylor Street cable-car turnaround, boasting short walks to Pier 39 and Ghirardelli Square and earning regular listings in best-hotel rankings from U.S. News and World Report, Conde Nast’s Traveler and TripAdvisor.
Pebblebrook said it estimated the hotel’s net operating income in the 12 months before Sept. 30 at $2.2 million with net losses of $1.2 million.
Pebblebrook said sale proceeds would pay off debts and buy back company shares.
In a September company update on operating trends, Pebblebrook said San Francisco and its other urban markets, including Los Angeles, Washington, D.C., Boston and Chicago, “continue to experience recovering demand,” driving increases in both occupancy and revenue per room.
An August investor presentation added that the recovery was led by its hotels in the city’s Embarcadero/Financial District and Fisherman’s Wharf sub-markets, with slower recovery from its Union Square/Market Street sub-market that still “benefits from its proximity to Moscone Center for convention demand.”
Pebblebrook will keep its 361-room Hotel Zephyr in Fisherman’s Wharf, as well as its 1 Hotel, Argonaut Hotel, Harbor Court Hotel, Hotel Zelos, Hotel Zeppelin and Hotel Zetta properties in San Francisco.