Pebblebrook Poised to Buy Inn on 5th in Naples for $156M
These buyers are all “inn,” but the Naples, Fla., hotel deal has yet to be finalized.
Pebblebrook Hotel Trust is in negotiations to acquire the Inn on 5th, at 699 5th Avenue South, according to the buyer.
The asset, which has been owned by hospitality executive Phil McCabe since the early 1990s, is a 119-room hotel with 21,000 square feet of storefront space on the busy corridor of 5th Avenue.
Bethesda, Md.-based Pebblebrook, which also owns Noble House Hotels & Resorts, expects the sale to close near the end of the second quarter by providing the seller with $78 million in cash. The hotel trust also plans to give the seller about $78 million of perpetual preferred operating partnership units.
“This unique leisure-focused property is centrally located at the main intersection of Old Naples and is surrounded by over 30 restaurants, cafes, art galleries and boutiques,” Jon Bortz, CEO of Pebblebrook Hotel Trust, said in a statement.
While the location is not waterfront, the Fifth Avenue beach is accessible via a hotel shuttle service and Pebblebrook is eyeing a number of operational and physical improvements that can be made in order to increase profits. This includes a possible development on a half-acre parcel adjacent to the main building that comes with the acquisition, according to Pebblebrook.
The 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.
Mark Hallum can be reached at email@example.com.