Pebblebrook Hotel Trust has closed on the sale of the 252-room, upper upscale Dumont NYC in New York. The sales price was $118 million.
The sale price reflects a 25.2x EBITDA multiple and a 3.3% 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 May 31, 2017.
“We are very excited to announce the sale of the Dumont NYC,” notes Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust, in a prepared statement. “With the completion of this sale, we have now completely exited the New York market.”
To date, Bortz continues, “our strategic disposition plan has generated a total of $581.8 million in gross proceeds, and we’re pleased with the success we’ve achieved as we continue to take advantage of the disparity between private market values and public market values.”
Proceeds from the sale of the Dumont NYC will be utilized for general business purposes, which may include reducing the Company’s outstanding debt or repurchasing the Company’s common shares. Following the sale of the Dumont NYC, the Company’s estimated net debt to trailing 12-month corporate EBITDA will decline to approximately 4.0 times.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust organized to opportunistically acquire and invest primarily in upper upscale, full-service hotels located in urban markets in major gateway cities. The company owns 28 hotels, with a total of 6,970 guest rooms.