• Tue. Dec 6th, 2022

Pebblebrook (PEB) acquires Margaritaville Hollywood Beach Resort


Pebblebrook Hotel Trust PEB acquired the 369-room Margaritaville Hollywood Beach Resort in Hollywood, Florida for $ 270 million from a subsidiary of KSL Capital Partners, LLC. Built in 2015, the buyout of this seaside lifestyle resort strengthens the company’s presence in the growing South Florida market.

– Zack

The Margaritaville Hollywood Beach Resort has 369 guest rooms, including 43 well-appointed suites and over 30,000 square feet of indoor and outdoor event space. Located between Miami Beach and Fort Lauderdale, this premier resort will likely benefit from its proximity to both cities.

It is also a convenient distance from Fort Lauderdale-Hollywood International Airport and Miami International Airport, and offers easy access to a variety of leisure, retail and entertainment activities for groups. of leisure and business overlooking the Atlantic Ocean.

With the Hollywood Bandshell, the focal point of the Hollywood Broadwalk located within the resort, the property attracts large numbers of tourists. It has eight very casual and upscale restaurants, such as Jimmy Buffet’s Margaritaville, Landshark Bar & Grill, JWB Prime Steak and Seafood, 5 o’Clock Somewhere Bar & Grill, and Floridays Airstream Cafe.

Additionally, other resort amenities include the 11,000-square-foot St. Somewhere Spa, Gym and Lounge, multiple outdoor pools, 22 full-service cabanas, Flowrider Surf Simulator, Parakeets Kids Club and several points of sale.

Markedly, with the relaxation of regulations, acceleration in vaccine distribution and favorable holiday travel trends, the accommodation industry is expected to continue to recover. In the midst of that, with a superior location and upscale features, this lifestyle beach resort in South Florida’s growing market is expected to attract both leisure clients and corporate groups.

The acquisition appears beneficial as the resort is expected to generate $ 475 to $ 480 in total revenue per available room, hotel earnings before interest, taxes, depreciation and amortization of $ 16.8 to 17.2 million, and profit from $ 16.8 to 17.2 million. ‘net operating from $ 14.3 million to $ 14.5 million after a decline of 4%. capital reserve.

Funded with $ 108.5 million in cash, the acquisition brings the total number of Pebblebrook properties in the portfolio to 52, which includes 10 independent beach resorts.

With this buyout, Pebblebrook will have close to $ 800 million in liquidity, including approximately $ 160 million of consolidated cash, cash equivalents and restricted cash, in addition to $ 644.2 million of non-availability. used on its senior unsecured revolving credit facility.

Pebblebrook Hotel shares have appreciated 24% year-to-date, outperforming the industry rally by 18.1%. The company currently has a Zacks rank of 3 (Hold).

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Choice of keys

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Zacks’ consensus estimate for CubeSmartCUBE 2021’s FFO per share edged up over the past month. The company currently has a Zacks rank of 2.

Zacks’ consensus estimate for Additional storage space inc.EXR’s current-year FFO per share has moved northward slightly over the past 30 days. The company currently carries a Zacks rank of 2.

To note: Everything about earnings presented in this valuation represents funds from operations (FFOs) – a measure widely used to assess the performance of REITs.

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