Original Article at: http://www.bizjournals.com/sanfrancisco/blog/real-estate/2015/02/radisson-fishermans-wharf-hotel-zephyr-sf-zetta.html

The Radisson Fisherman's Wharf will soon transform into a different hotel entirely.

Following the $132 million purchase of the Radisson Hotel Fisherman's Wharf by Pebblebrook Hotel Trust in 2013, hotel operator Davidson Hotels & Resorts is launching a renovation of the Radisson, which will become Hotel Zephyr.

In the heart of Fisherman's Wharf, the 361-room hotel and conference center occupies an entire block of the busy tourist area and includes 44,000 square feet of street-facing retail space. In addition, it has 1,728 square feet of meeting room and 235 parking spaces.

When the renovation is complete in the spring, the Radisson will become an upscale boutique property. The renovation is using materials such as recycled corrugated metal and cargo containers to upcycled nautical materials and shipping crates. The design is led by Dawson Design Associates, the same group that oversaw the Hotel Zetta in San Francisco's SoMa neighborhood, which Bethesda, Md.-based Pebblebrook acquired for $29.8 million.

Originally built in 1964, the Radisson expanded in 1999 with an additional 105 rooms and 30,000 square feet of retail. In 2012, the hotel underwent a $4.5 million renovation of its guest rooms, lobby and fitness center.

The hotel will remain open during the renovation, and the hotel website says reservations are currently being accepted through Radisson for the new Hotel Zephyr for after May 2015.

The transformation from Radisson to the more boutique Hotel Zephyr reflects the increasing popularity of boutique hotels — which are characterized by unique designs and great bars and restaurants — among hotel developers and operators.

In recent years, many large hotel companies have started their own lifestyle brands to compete in the boutique hotel market, which has been growing in popularity among young travelers. Hilton Worldwide Holdings Inc. and Best Western International Inc. both announced plans for their own such brands earlier this year. United Kingdom-based Intercontinental Hotels Group recently acquired San Francisco boutique hotel operator Kimpton Hotels & Restaurants, which has been a leader in the boutique hotel sector.