Pebblebrook Hotel Trust acquires Gurney’s Newport for $174M

GURNEY'S NEWPORT RESORT & MARINA on Goat Island in Newport was recently acquired by Pebblebrook Hotel Trust for $174 million. The company is planning a number of renovations and upgrades and retains the right to purchase the 22-slip marina in 2027. / COURTESY GURNEY’S NEWPORT RESORT & MARINA

NEWPORT – Pebblebrook Hotel Trust has purchased Gurney’s Newport Resort & Marina for $174 million, the company announced June 24.

The 10-acre resort on Goat Island features 80,000 feet of indoor and outdoor event space, with 257 guestrooms, including 18 large suites and a 22-slip marina that can accommodate boats up to 240 feet long. Other attractions include a 3,000-square-foot spa with nine treatment rooms, a coffee shop, a 3,200-square-foot waterside pavilion, outdoor fireplaces, a lobby bar, an outdoor saltwater pool with poolside cabanas, a fitness center, an indoor pool and a seasonal ice-skating rink.

The acquisition of Gurney’s Newport is the 55th property in the Pebblebrook Hotel Trust portfolio. The real estate investment trust based in Bethesda, Md., owns multiple urban and resort lifestyle hotels and resorts in the United States.

The company is planning a number of improvements and upgrades to the resort, according to a news release, including fully renovating the guestrooms and guest bathrooms; upgrading the lobby, arrival experience and landscaping; refurbishing the restaurants and bars; adding a market; relocating/upgrading the spa; reimagining the Grand Ballroom, south lawn and outdoor pavilion spaces; and adding new guest activities and amenities.

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“Gurney’s Newport is the only resort-style property in Newport, and it is one of the very few true waterside resorts on the Northeastern Seaboard, drawing strong demand from New York, Boston and Providence,” Jon E. Bortz, chairman, CEO and president of Pebblebrook, said in a statement. “This unique New England retreat features an expansive footprint overlooking Newport Harbor and Narragansett Bay, where guests can enjoy upscale dining, spa treatments, sailing tours, outdoor event spaces, a private marina, cabana experiences and numerous other resort-style amenities.”

In addition, the company has the right to purchase the marina in 2027, according to the release. The resort will also become part of Curator Hotel & Resort Collection, which is expected to “generate a wide array of expense reductions combined with enhanced technology and operating initiatives.”

Based on the estimated May 2022 trailing-12-month performance, the hotel generated total revenue per available room of $401, as well as hotel earnings before interest, taxes, depreciation and amortization of $13.6 million, and hotel net operating income, after a 4% capital reserve, of $12.1 million.

Tim Norton is a PBN staff writer. You may contact him at Norton@PBN.com.

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