BETHESDA, Md.– Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) announced that on May 24, 2023, it closed on the sale of the 125-room Hotel Vintage Seattle in Seattle, WA for $33.7 million to a third party.
For the trailing twelve months ended March 31, 2023, the hotel’s net operating income was $0.8 million, and its Hotel EBITDA was $1.1 million, with the $33.7 million sales price reflecting a 31.0x EBITDA multiple and a 2.3% net operating income capitalization rate. Based on the hotel’s operating performance for 2019, the $33.7 million sales price reflects an 11.2x EBITDA multiple and a 7.3% 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 Hotel Vintage Seattle will be used for general corporate purposes, which may include reducing the Company’s outstanding debt and repurchasing common and preferred shares.
