Pebblebrook Hotel Trust | February 03, 2021
BETHESDA, Md. — February 3, 2021 — Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that it had executed a contract to sell the 416-room Sir Francis Drake in San Francisco, CA to a third party, which the Company expects will generate $157.6 million of proceeds after customary closing costs.
Based on the hotel’s net operating income for the year ended December 31, 2019, such proceeds after customary closing costs reflect a 7.2% net operating income capitalization rate. The net operating income capitalization rate is after an assumed annual capital reserve of 4.0% of total hotel revenues.
The sale of Sir Francis Drake is subject to normal closing conditions, and the Company offers no assurances that this sale will be completed on these terms, or at all. The Company is targeting to complete the sale within 60 days.
| Pebblebrook Hotel Trust | |||
| Sir Francis Drake | |||
| Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income | |||
| Trailing Twelve Months | |||
| (Unaudited, in millions) | |||
|
Twelve months ended |
|||
|
2019 |
|||
| Hotel net income |
$9.5 |
|
|
| Adjustment: | |||
| Depreciation and amortization |
3.9 |
|
|
| Hotel EBITDA |
$13.4 |
|
|
| Adjustment: | |||
| Capital reserve |
(2.0 |
) |
|
| Hotel Net Operating Income |
$11.4 |
|
|
