Gurney’s Newport Resort has sold, according to a press release from Pebblebrook Hotel Trust.
Bethesda, Maryland-based Pebblebrook Hotel Trust on Friday announced that on June 23, 2022, it acquired the 257-room hotel and resort in Newport for $174.0 million.
“We are very excited to acquire this extremely unique premier resort within the vibrant, high barrier to entry Newport market,” said Jon E. Bortz, Chairman, President, and Chief Executive Officer of Pebblebrook Hotel Trust (“Pebblebrook”) in the press release.
According to its website, Pebblebrook Hotel Trust “is a publicly-traded real estate investment trust (“REIT”) organized in December 2009 to opportunistically acquire and invest in upper upscale, full service hotel and resort properties located in or near urban markets in major United States gateway cities”.
“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,” Bortz continued in the relase.” 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. With group and individual travelers increasingly seeking a unique resort experience with open-air amenities, Gurney’s Newport is well-positioned to continue to grow in the highly attractive Newport market.”
About Gurney’s, the company says in the press release, “Gurney’s Newport is an irreplaceable ten-acre waterside resort located on highly visible Goat Island in world-famous Newport, Rhode Island. The independent resort boasts 360-degree unobstructed water views of Narragansett Bay as well as Newport Harbor, and the iconic Newport Bridge, creating the quintessential coastal New England experience. Gurney’s Newport features 257 guestrooms, including 18 spacious suites, and 80,000 square feet of flexible indoor and outdoor event space, surrounded by expansive lawns, sweeping water views, a marina, and a historic lighthouse. The resort contains a wide variety of waterside eateries, including Showfish Newport and The Pineapple Club, which feature ingredient-driven menus with healthy bites, locally sourced dishes, and seasonal classics. The resort also contains a 22-slip full-service marina with direct access to Gurney’s Newport. Additional resort amenities include a 3,000-square foot spa with nine treatment rooms, outdoor fireplaces throughout, a lobby bar, a grab-and-go coffee shop, a 3,200-square foot waterside pavilion with fantastic views, a resort-style saltwater outdoor pool with poolside cabanas, an indoor pool, a fitness center, and a seasonal ice-skating rink”.
The Company says that it is “evaluating numerous operating and physical enhancements to the guest experience to drive increased cash flow. Pebblebrook believes the overall opportunity is to reposition the property to a higher level, given its unique location and amenities. Potential improvements include 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”.
In addition, the Company says that it has the right to purchase the marina (which includes 22 slips accommodating boats up to 240 feet) in 2027.
The resort will also become part of Curator Hotel & Resort Collection, which the company says is expected to generate a wide array of expense reductions combined with enhanced technology and operating initiatives.
The company says that acquisition of Gurney’s Newport brings the total number of properties in the Company’s portfolio to 55, including 13 unique drive-to, independent lifestyle resorts. Pebblebrook reports that it funded the acquisition with cash on hand and proceeds from its senior unsecured revolving credit facility.
George Filopoulos of Metrovest and BLDG Management, owners of Gurney’s Montauk Resort & Seawater Spa, along with affiliates of Square Mile Capital Management LLC, purchased the Hyatt Regency Newport in 2016. After several months of transformation, it debuted as Gurney’s Newport Resort & Marina in 2017.
Gurney’s, which also operates resorts in Scottsdale and Arizona; Montauk, New York, has not released any information on the purchase.