Pebblebrook Hotel Trust Completes Sale of Boston’s Onyx Hotel for $58.3 Million
Pebblebrook Hotel Trust (NYSE: PEB) (the "Company") announced that it closed on the sale of the 112-room Onyx Hotel in Boston, Massachusetts for $58.3 million on May 29, 2019.
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