Pebblebrook Hotel Trust (PEB) has acquired the 200-room Jekyll Island Club Resort. The $94 million acquisition is the 52nd property addition to Pebblebrook’s portfolio.
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Jekyll Island Club Resort, which will be managed by Noble House, is expected to operate at 68% occupancy for the full-year 2021.
The Chairman, President and CEO of Pebblebrook, Jon E. Bortz, said, “This regional drive-to retreat is the island’s premier destination, strategically located in the center of the Jekyll Island National Landmark Historic District. There are many opportunities at the resort to increase the property’s financial performance through operational enhancements and physical improvements, including elevating the entire guest experience, expanding the restaurant and bar offerings, reimagining the merchandising and quality of the retail space, and creating many more revenue-generating venues.” (See Pebblebrook stock chart on TipRanks)
He added, “Our redevelopment expertise combined with our asset management initiatives should generate tremendous value creation at this storied resort.”
Last month, Evercore ISI analyst Richard Hightower upgraded Pebblebrook’s rating to a Hold from Sell with a price target of $25. The price target implies 8.4% upside potential.
Hightower notes that low-interest rates in financing markets have driven REITs upwards. This is expected to boost demand for Pebblebrook and drive its EBITDA growth.
Consensus among analysts is a Hold based on 1 Buy and 6 Holds. The average Pebblebrook price target of $25.5 implies 10.6% upside potential to current levels.
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