BETHESDA, Md.–Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that on August 2, 2022, it closed on the sale of the 306-room Sofitel Philadelphia at Rittenhouse Square in Philadelphia, PA for $80.0 million to a third party.
For the trailing twelve months ended June 30, 2022, the hotel’s net operating income was $3.1 million, and its Hotel EBITDA was $3.8 million. Based on the hotel’s operating performance for 2019, the $80.0 million sales price reflects a 10.0x EBITDA multiple and an 8.6% net operating income capitalization rate. The net operating income for both periods mentioned above is after an assumed annual capital reserve of 4.0% of total hotel revenues.
Proceeds from the sale of Sofitel Philadelphia at Rittenhouse Square will be used for general corporate purposes and reducing the Company’s outstanding debt borrowings associated with recent hotel acquisitions, in accordance with the Company’s investment strategy.
