San Francisco’s historic Villa Florence hotel sells for $87.5m

San Francisco's historic Villa Florence hotel sells for $87.5m

AWH Partners and The Roxborough Group have acquired the Villa Florence Hotel and retail in San Francisco for $87.5 million.

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.

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 renovations to the property are slated for completion by the end of 2022.

The hotel also includes over 10,000 square feet of valuable retail along Powell and O’Farrell Streets.  Spire Hospitality has taken over management of the property. 

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“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.”  

“The opportunity to acquire an exceptionally well-located and historically high-performing hotel, in an 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 destinations 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.  We felt now, during a period of transition, was an ideal time to get into the market” said Jon Rosenfeld, co-founder and managing partner of AWH. “The asset has performed well historically and we expect it to do the same in the future.”