Sawyer Enterprises has reached an agreement with Pebblebrook Hotel Trust of Bethesda, Maryland for the sale of its W Hotel to Pebblebrook for $89.5 million.
Under the agreement, an affiliate of Starwood Hotels and Resorts Worldwide, Inc. will continue to operate the 235 room luxury hotel and its affiliated W Residences.
"We were not looking to sell, but Pebblebrook presented us with a compelling offer," said Carol Sawyer Parks, the chief executive officer of Sawyer Enterprises. "The price is clear evidence of the strong attributes of the "W" brand, and by extension has a positive impact on the value of the "W" Residences. Both the hotel and the residences will continue to be managed under the "W" flag. As for the hotel, it will be business as usual, with the hotel's guests receiving the luxury amenities and services they have come to expect."
Pebblebrook is a, publicly traded hospitality real estate investment trust that has made a number of acquisitions of late, such as the Sir Francis Drake Hotel in San Francisco and the Hotel Monaco in Washington, D.C.
"With the steady sales of the residences and the funds provided by the sale of the hotel, our timetable to pay off our indebtedness will be accelerated," Parks said. "We have 43 sales closed or under agreement, and sales activity continues to be strong. In addition, our bankruptcy reorganization plan will be filed later this week and we anticipate approval in June."