Pebblebrook Hotel Trust recently closed on the sale of the 343-room, Liaison Capitol Hill in Washington, D.C. The sales price was $111 million.
The sale price reflects a 16.9x EBITDA multiple and a 4.9% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues) based on the trailing 12-month operating performance for the period ended December 31, 2018.
According to a prepared release, proceeds from the sale of the Liaison Capitol Hill will be utilized for general business purposes. According to the releasee, that use might include reducing the company’s outstanding debt.
As a result of this completed sale, Pebblebrook estimates its total net debt to trailing 12-month corporate EBITDA will be approximately 4.8 times at the end of the first quarter 2019.
Pebblebrook Hotel Trust currently owns 62 hotels, totaling approximately 14,900 guest rooms, located in 10 states and the District of Columbia, in the following markets: Del Mar, California; Los Angeles, California (Beverly Hills, Santa Monica and West Hollywood); San Diego, California; San Francisco, California; Santa Cruz, California; Washington, DC; Coral Gables, Florida; Key West, Florida; Naples, Florida; Buckhead, Georgia; Chicago, Illinois; Boston, Massachusetts; New York, New York; Portland, Oregon; Philadelphia, Pennsylvania; Nashville, Tennessee; Columbia River Gorge, Washington; and Seattle, Washington.