Pebblebrook Hotel Trust Completes Sale of Hotel Palomar Washington, DC for $141.5 Million
Pebblebrook Hotel Trust (NYSE: PEB) (the "Company") today announced that it has closed on the sale of the 335-room, Hotel Palomar Washington, DC for $141.5 million. The sale closed on February 22, 2019.
The sale price of $141.5 million reflects a 14.9x 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. When combined with the recently announced sale of The Liaison Capitol Hill, the aggregate sales proceeds of $252.5 million for these two sales reflect a 15.7x EBITDA multiple and a 5.5% net operating income capitalization rate based on the operating performance of the hotels in 2018.
Proceeds from the sale of Hotel Palomar Washington, DC 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 first quarter 2019.