Pebblebrook Hotel Trust has closed on the sale of the 112-room Onyx Hotel in Boston for $58.3 million. According to a prepared release, the sale price of $58.3 million reflects a 15.3x EBITDA multiple and a 5.9% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues) based on the hotel’s operating performance for 2018.
Proceeds from the sale of the Onyx Hotel will be utilized for general business purposes which may include reducing the Company’s outstanding debt. As a result of this completed sale, the Company estimates its total net debt to trailing 12-month corporate EBITDA will be approximately 4.7 times at the end of the second quarter 2019.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust and the largest owner of urban and resort lifestyle hotels in the US. The company owns 60 hotels, totaling approximately 14,500 guest rooms across 16 urban and resort markets with a focus on the west coast gateway cities.