Taking a branded property and converting it to an independent is no easy process, and it comes with several risks. It can, however, be financially rewarding for owners when done right.
With seven hotels in San Francisco, Pebblebrook is very familiar with the market, Martz said. When the company had the opportunity to turn two branded properties in the Fisherman’s Wharf neighborhood independent, Martz and his team jumped at the chance. Pebblebrook converted a Best Western property to the Hotel Zoe Fisherman’s Wharf and a Radisson hotel into Hotel Zephyr.
“We knew where the rates could go,” Martz said, adding Pebblebrook was confident each of these hotels could be repositioned to more of a lifestyle brand due to the type of travelers and hotel guests who frequent San Francisco.
Markets are always key to this process, said Matt Marquis, president and CEO of Pacifica Hotels. There are a lot of good brands in good markets that Pacifica would consider underperforming, he said. Right now, the company’s strategy is to build relationships with owners of those properties.
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