BETHESDA, Md – Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) announced that it closed on the sale of the 99-room Topaz Hotel in Washington, D.C. for $33.1 million to a third party on November 22, 2019.
The sale price of $33.1 million reflects a 19.5x EBITDA multiple and a 4.4% net operating income capitalization rate based on the hotel’s operating performance for 2018. Based on the trailing 12-month period ended September 30, 2019, the contracted sales price reflects a 17.9x EBITDA multiple and a 4.9% net operating income capitalization rate.
Following the sale of Topaz Hotel, the Company has completed a total of $1.33 billion of asset sales as part of its strategic disposition plan, and year to date, the Company has completed a total of $482.1 million of asset sales towards its goal of $600.0 million, which reflects a 16.0x EBITDA multiple and a 5.45% net operating income capitalization rate based on the hotels’ performance for 2018. The net operating income capitalization rates above are after an assumed annual capital reserve of 4.0% of total hotel revenues.
Proceeds from the sale of Topaz Hotel will be utilized for general business purposes which may include reducing the Company’s outstanding debt.