Gurney's Newport just sold for $174 million. Here's what the new owners have planned.

NEWPORT — Gurney's Newport Resort & Marina on Goat Island has sold. 

In a press release Friday, Pebblebrook Hotel Trust, which has more than 50 properties in its portfolio, announced it purchased the 257-room hotel for $174 million. 

“We are very excited to acquire this extremely unique premier resort within the vibrant, high barrier to entry Newport market,” Jon E. Bortz, chairman, president and CEO of Pebblebrook, said in the release. “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."

According to the release, 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, and a 22-slip full-service marina with direct access to Gurney’s Newport.

'It’s different for every case':Why the cause of the Wayfinder fire remains unknown

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 said it is evaluating numerous operating and physical enhancements to the guest experience to drive increased cash flow. Potential improvements, the release says, include fully renovating the guestrooms and guest bathrooms, upgrading the lobby, arrival experience, 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.

More:Waites Wharf hotel plan fails to meet certain criteria from Planning Board. Here's why.

"Pebblebrook believes the overall opportunity is to reposition the property to a higher level, given its unique location and amenities," the release says.

In addition, Pebblebrook has the right to purchase the marina (accommodating boats up to 240 feet) in 2027. 

Based on the estimated May 2022 trailing-12-month performance, the hotel generated total revenue per available room (“TRevPAR”) of $401, hotel earnings before interest, taxes, depreciation, and amortization (“hotel EBITDA”) of $13.6 million, and hotel net operating income (“hotel NOI”), after a 4% capital reserve, of $12.1 million.

More:High gas prices won't deter Newport tourists. But will it affect how much they spend?

The 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 said it funded the acquisition with cash on hand and proceeds from its senior unsecured revolving credit facility, the press release stat

Gurney's bought the property, previously known as Hyatt Regency Newport, in 2016.