Pebblebrook Hotel Trust Closes $331M Sale of Two Hotels
The sale consisted of a 422-room hotel in Atlanta, GA and a 237-room in Washington DC.
WASHINGTON DC – Pebblebrook Hotel Trust has completed the sale of a 422-room hotel in Atlanta, GA and a 237-room in Washington DC to a third party, for a combined total of $331 million.
The transaction, which closed on March 6, comprises the InterContinental Buckhead Atlanta and the Sofitel Washington DC Lafayette Square.
The contracted sale price for the InterContinental Buckhead Atlanta reflected a 13.7x EBITDA multiple and a 6.4% net-operating income capitalization rate, based on the hotel’s 2018 operating performance. The contracted sales price reflected a 13.0x EBITDA multiple and a 6.8% net-operating income capitalization rate, based on the hotel’s 2019 operation performance.
The contracted sale price for and the Sofitel Washington DC Lafayette Square reflected a 15.1x EBITDA multiple and a 5.7% net-operating income capitalization rate, based on the hotel’s 2018 operating performance. The contracted sales price reflected a 15.2x EBITDA multiple and a 5.7% net-operating income capitalization rate, based on the hotel’s 2019 operation performance.
The contracted sales price for the combined properties reflected a 14.2x EBITDA multiple and a 6.1% net-operating income capitalization rate, based on the hotels’ 2018 operating performance. The contracted sales price based the hotels’ 2019 operating performance reflects a 13.7x EBITDA multiple and a 6.4% net-operating income capitalization rate.
All net-operating income capitalization rates are represented after an assumed 4% annual capital reserve of total hotel revenues.
As the largest owner of urban and resort lifestyle hotels in the US, the publicly-traded REIT, Pebblebrook Hotel Trust owns 54 hotels, representing 13,400 guest rooms across 15 urban and resort markets, primarily within west coast gateway cities.