SAN FRANCISCO, CA – Pebblebrook Hotel Trust has sold the 416-room, Kimpton Sir Francis Drake Hotel in San Francisco, CA for net proceeds of $157.6 million after customary closing costs.
The hotel sold to a third party on April 1, 2021.
Pebblebrook Hotel Trust originally acquired the Sir Francis Drake Hotel in 2010 for $90 million, as the company's second hotel. The property delivered significant gain on sale and an 11-year compounded internal rate of return of over 12% a year.
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Pebblebrook Hotel Trust will utilize the proceeds of the sale for general business purposes.
The net proceeds of the sale represent an 11.8x EBITDA multiple and a 7.2% net operating income capitalization rate, after an assumed annual capital reserve of 4% of total hotel revenues, based on the hotel's 2019 operating performance.
Separately, the company recently reopened operated at five of its urban hotels, including Argonaut Hotel San Francisco, Harbor Court Hotel San Francisco, Hotel Monaco Washington DC, Hotel Zelos San Francisco and Revere Hotel Boston Common.
Pebblebrook Hotel Trust has now reopened 44 of the 52 hotels and resorts in its portfolio; accounting for 86% of its 2019 hotel EBITDA. The company's remaining suspended hotels are expected to reopen within the coming months as demand recovers.
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Ingrid Tunberg
Ingrid Tunberg sits on the editorial team as a coordinator and reporter for Real Estate Forum and GlobeSt.com. She is responsible for writing stories, assisting with industry awards and marketing nomination events. Previously, Ingrid worked as a copywriter across various industries throughout New York City and Chicago.
