Pebblebrook Hotel Trust Secures $33M Sale for DC Hotel
The company is targeting to complete the sale in Q4 2019.
WASHINGTON DC – Pebblebrook Hotel Trust has executed a contract to sell the Topaz Hotel in Washington DC for $33 million.
The sale of the 99-room hotel to a third party, is subject to standard closing conditions, as Pebblebrook Hotel Trust offers no assurances that the sale will be completed on these terms. The company aims to complete the sale in the fourth quarter of 2019.
The contracted $33 million sale price reflects a 19.5x EBITDA multiple and a 4.4% net-operating income capitalization rate, based on the Topaz Hotel’s 2018 operating performance. The contracted sales price reflects an 18.2x EBITDA multiple and a 4.8% net-operating income capitalization rate, based on the 12-month period ending in June 2019. The net-operating income capitalization rates are after an assumed annual capital reserve of 4.0% of total hotel revenues.
Pebblebrook Hotel Trust, a publicly traded REIT, is the nation’s largest owner of urban and resort lifestyle hotels. The company owns 57 hotels, totaling 14,100 guest rooms across 16 markets, with a focus on west coast gateway cities.