Union Square’s Villa Florence Hotel, an 189-key boutique hotel located in a historic building, was purchased for $87.5 million by real estate firms The Roxborough Group and an affiliate of AWH Partners, the companies announced on Monday. The deal also includes 10,000 square feet of retail at along Powell Street and O’Farrell streets, as well. Spire Hospitality, a hotel operating company whose portfolios include Hilton and Marriott properties.
“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,” Marc Perrin, managing partner of The Roxborough Group, said in a statement. “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.”
Located less than a block from Union Square, the hotel offers 1,400 square feet of meeting space, a business center, a fitness center, valet parking and a lobby bar. The firms plan to conduct renovation on its guest rooms and lobby as well as reopen its restaurant. Villa’s former restaurant tenant, Kuleto’s, closed in 2016.
Renovations are slated for completion in 2022.