Pebblebrook set to buy 5th inn in Naples for $156 million – Trade Observer

These buyers are all “inns,” but the Naples, Florida hotel deal has yet to be finalized.

Pebblebrook Hotel Trust is in negotiations to acquire Inn on the 5thto 699 5th Avenue Southaccording to the buyer.

The asset, which belonged to the hotel manager Phil McCabe since the early 1990s, has been a 119-room hotel with 21,000 square feet of storefront space on the busy 5th Avenue corridor.

Pebblebrook, based in Bethesda, Maryland, which also owns Noble House Hotels and Resorts, expects the sale to close late in the second quarter by providing the seller with $78 million in cash. The hotel trust also plans to give the seller approximately $78 million worth of perpetual preferred operating partnership units.

“This unique leisure-oriented property is centrally located on the main intersection of Old Naples and is surrounded by over 30 restaurants, cafes, art galleries and shops,” Jon BortzCEO of Pebblebrook Hotel Trust, said in a statement.

Although the location is not waterfront, the Fifth Avenue beach is accessible via a hotel shuttle service, and Pebblebrook is considering a number of operational and physical improvements that can be made in order to increase profits. That includes possible development on a half-acre parcel adjacent to the main building that accompanies the acquisition, according to Pebblebrook.

Acquisition of the Old Naples Hotel would bring Pebblebrook’s portfolio to 54 properties, including six in South Florida and 12 other lifestyle resorts.

A representative for McCabe did not respond to a request for comment.

Marc Hallum can be contacted at [email protected].

About Margaret L. Portillo

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