AWH Partners LLC JV With The Roxborough Group Acquire San Francisco’s Historic Villa Florence
Main Photo: Villa Florence, San Francisco
Date: September 2021
Name: Villa Florence San Francisco
Location: San Francisco, USA
Number of Keys: 189
Seller: TBA
Buyer: AWH Partners LLC and The Roxborough Group
AWH Partners LLC and The Roxborough Group have acquired the Villa Florence Hotel and retail in San Francisco for $87.5 million. The partnership plans a full repositioning of the property, including a renovation of all 189 guestrooms as well as the lobby and ground-floor restaurant. The hotel also includes more than 10,000 square feet of valuable retail along Powell and O’Farrell Streets.
Spire Hospitality has taken over management of the property. Spire is a third-party operator of 6,000 room keys and 300,000 square feet of meeting space across 17 states. The Spire portfolio, with a focus on large, full-service hotels, includes unique independent properties and premier branded assets across Hilton Hotels & Resorts (HLT), Marriott International (MAR) and InterContinental Hotels Group (IHG)
“We had to move quickly in order to buy this hotel outside of a traditional marketing process,” said Chad Cooley, co-founder and managing partner of AWH Partners. “We are extremely pleased to have the opportunity to partner again with The Roxborough Group, a San Francisco based real estate private equity firm. Together, AWH Partners and The Roxborough Group brought industry-leading expertise to the sourcing, structuring, and execution of this hospitality and high street retail investment.”
First opened in 1915, the 189-key property is less than one block from Union Square, the heart of San Francisco’s shopping and tourism district, and is one of the best located hotels in the city of San Francisco. Each guestroom has a 55-inch LCD television with premium movie channels, a mini refrigerator, ample workspace, a personal electronic safe, and plush pillows and linens. The property has three meeting rooms, totaling 1,400 square feet of meeting space, a business center, a fitness center, valet parking, and a lobby bar. The renovations to the property are slated for completion by the end of 2022.
“The opportunity to acquire an exceptionally well-located and historically high-performing hotel, in a irreplaceable location and reposition it as San Francisco recovers from the pandemic is very exciting,” said Marc Perrin, managing partner of The Roxborough Group. “This investment is a great opportunity to expand our partnership with AWH, with the potential for significant upside in repositioning both the hotel and what has historically been very successful street-front retail.”
Situated along the Powell Street Cable Car Line, Villa Florence is within walking distance of major tourism destination including Union Square, Chinatown, and the San Francisco Museum of Modern Art (SFMOMA) and is also proximate to a range of restaurants, bars, lounges, breweries and distilleries. The hotel’s location, blocks from the Financial District and Moscone Convention Center, is also convenient for business travelers.
“San Francisco, a city with extremely high barriers to entry and very low supply growth, has historically proven an exceptional market in which to invest,” said Jon Rosenfeld, co-founder and managing partner of AWH. “We felt now, during a period of transition, was an ideal time to get into the market. The asset has performed well historically, and we expect it to do the same in the future.”
Price: $87.5 million
Price per key: $462,962
THPT Comment: Great to see this historic venue being given fresh investment and repositioning as San Francisco recovers from the pandemic.
First Seen: Hotel Online
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