Pebblebrook Hotel Trust Acquires RedburyFriday, August 9, 2013
Mondrian Hotel owner Pebblebrook Hotel Trust announced that it has acquired Hollywood’s boutique Redbury Hotel from CIM Group for $34 million.
Pebblebrook, of Bethesda, Md., said the 57-suite luxury hotel, bar and restaurant operation will continue to be managed by Sam Nazarian’s SBE Hotel Group.
"Partnering with Pebblebrook on the Redbury is a venture with tremendous upside and positions the property for continued success for years to come," said Nazarian in a statement. "Our collective knowledge of the Los Angeles market and vast hotel industry expertise will add tremendous value to the property and provide a strong foundation for our partnership to thrive."
CIM, a Hollywood developer, opened the hotel at 1717 Vine St. in Sept. 2010. It originally was destined to become another Palihouse by hotel developer Avi Brosh, but went into foreclosure after Brosh ran into financial problems during the recession. CIM bought it at auction for just $16.8 million in February 2010 and brought in Nazarian to complete the project.
Pebblebrook Chief Executive Jon Bortz said the Redbury complements its other L.A.- area properties, but the purchase is considered unusual given the Redbury’s small size. In addition to the 236-room Mondrian in West Hollywood, the real estate investment trust’s other local hotels include the 258-room W in Westwood and the 310-room Sheraton Delfina in Santa Monica, which is set to be rebranded as the Le Méridien Delfina.
In 2012, the Redbury Hotel operated at 84 percent occupancy, with an average daily rate of $274, Pebblebrook said.