San Francisco, CA – January 11, 2017 – Hodges Ward Elliott (“HWE”), the world’s leading independent hotel brokerage and investment-banking firm, with offices in New York, Atlanta, Los Angeles and London, is announcing they represented Thayer Lodging Group, MetLife and Cascade Investment LLC in their recently closed sale of the iconic Ritz-Carlton San Francisco hotel.
The landmark nine-story, 336 guest-room property, located in the heart of the famous Nob Hill neighborhood and situated along the famed California Street cable car line, was acquired by Carey Watermark Investors 2, a non-traded real estate investment trust focused on investing in lodging and lodging-related properties.
President Mark Elliott and Managing Director Pete Dannemiller of Hodges Ward Elliott represented the seller in the transaction.
Originally built in 1909, the neo-classical architecture property received landmark status in 1984 and has served under the Ritz-Carlton brand name since 1991. The joint venture acquired the property in 2013 and implemented over $20 million of capital improvements to the property under their ownership, including the renovation of all guest rooms and updates to the lobby, restaurant, meeting and event space and spa. Two new retail outlets and a fitness center were also added during the renovation. Since the completion of the numerous capital improvements, the hotel received several industry awards and remains the only AAA Five-Diamond Hotel in the San Francisco market.
“The Ritz-Carlton San Francisco stands out as not only the most luxurious hotel in the entire city, but also as an iconic property that has been in the market for over a century,” notes Mr. Elliott. “This hotel has served thousands of guests in comfort and style for years and we expect it to enjoy continued success under its new ownership. It was a great honor for Hodges Ward Elliott to have been given the opportunity to market this prestigious property and successfully execute its sale.”
The hotel will continue to be managed by The Ritz-Carlton Company, L.L.C. (The Ritz Carlton), an affiliate of Marriott International. Overall, the property includes:
- 336 guest rooms
- 23,000 square feet of newly-renovated meeting space including a 9,400-square-foot ballroom and a 2,200-square-foot interior courtyard and function space
- Two food & beverage outlets (restaurant and lobby lounge)
- L’Occitane Spa, wine tasting lounge and jewelry boutiques
- Fitness and business centers
The San Francisco market remains strong and the expected limited opportunity for new hotel development in the coming years will boost the long-term value of the Ritz-Carlton San Francisco. In addition to its unmatched amenities, the property also has an excellent centralized location near numerous shopping and dining options, as well as easy access to major city destinations including the Financial District, Union Square, Fisherman’s Wharf and the Moscone Center.