DC's K street
WASHINGTON, DC—Pebblebrook Hotel Trust has sold the 343-room, Liaison Capitol Hill in the District for $111.0 million.
The sale price reflects a 16.9x EBITDA multiple and a 4.9% net operating income capitalization rate (after an assumed annual capital reserve of 4% of total hotel revenues) based on the trailing twelve-month operating performance for the period ended December 31, 2018.
Proceeds from the sale will be used for general business purposes including reducing the REIT's outstanding debt. As a result of this completed sale, Pebblebrook estimates its total net debt to trailing 12-month corporate EBITDA will be approximately 4.8 times at the end of the first quarter 2019.
Following the close of its $5.2 billion acquisition of LaSalle Hotel Properties, Pebblebrook began a disposition strategy in which it expects to sell between $750 million to $1.25 billion of hotels in the next six to 12 months.
Properties that it has sold recently include Park Central San Francisco, Park Central New York/WestHouse New York, Gild Hall New York and Embassy Suites Philadelphia Center City.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
