Pebblebrook Hotel Trust Sells DC Hotel
The REIT completed the sale of the 99-room Topaz Hotel for $33 million.
WASHINGTON DC – Pebblebrook Hotel Trust has closed the sale of the Topaz Hotel in Washington DC for $33.1 million.
Located at 1733 N Street NW, the 99-room hotel was sold to a third party.
Including the recent sale, Pebblebrook Hotel Trust has now completed asset sales totaling $1.33 billion, aligning with its strategic disposition plan. The REIT has completed a total of $482.1 million of asset sales, year to date; working toward its goal of $600 million, which reflects a 16x EBITDA multiple and a 5.45% net operating income capitalization rate.
The $33.1 million sale price reflects a 19.5x EBITDA multiple and a 4.4% net operating income capitalization rate, based on the hotel’s operating performance for 2018. The contracted sales price reflects a 17.9x EBITDA multiple and a 4.9% net operating income capitalization rate, based on the trailing 12-month period ending in September 2019.
Pebblebrook Hotel Trust plans to utilize earnings from the sale for general business purposes, possibly including reducing the firm’s outstanding debt.
The publicly-traded REIT, Pebblebrook Hotel Trust serves as the largest owner of urban and resort lifestyle hotels within the US. The firm currently owns 56 hotels, totaling 14,000 guest rooms throughout 16 markets.