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  • 21 Oct 2014

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Nines Hotel sold

Indebted downtown icon will stay with Sage


The Nines Hotel in downtown Portland has been sold. Pebblebrook Hotel Trust announced Thursday that it has acquired The Nines Hotel for $127.0 million. The 331-room luxury hotel is located across from Pioneer Square in downtown. The property will continue to be operated by Sage Hospitality and Sage Restaurant Group. Pebblebrook also owns Hotel Modera downtown.

“We’re thrilled with our acquisition of The Nines Hotel and the opportunity to further expand our presence in the high- growth Portland market,” said Jon Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust in a statement. “This hotel represents our third hotel investment in Portland’s central business district, and the property’s desirable location across from Pioneer Square ideally places it near many of downtown Portland’s most notable demand generators. The hotel’s excellent downtown location and strong operating fundamentals, including its position as the market’s rate leader, make this acquisition an outstanding addition to our high-quality portfolio.”

The Nines Hotel is one of Portland’s most visited sites.

Pebblebrook acquired a fee simple condominium interest in The Nines Hotel. The historic building, originally constructed in 1909 as the Meier & Frank Building, underwent a comprehensive $140 million adaptive reuse renovation and reopened as The Nines Hotel in October 2008. The hotel occupies floors six through fifteen

In 2013, The Nines Hotel operated at 88 percent occupancy, with an average daily rate (“ADR”) of $193 and room revenue per available room (“RevPAR”) of $170.

In conjunction with the acquisition, the Company is assuming three secured, non-recourse loans totaling $50.7 million, which are subject to a weighted average interest rate of 7.4%. Each of the loans matures on March 5, 2015.

The Company expects to invest $6.0 to $8.0 million of capital to refresh the guestrooms and public areas, which it anticipates commencing in the fourth quarter of 2015.