Pebblebrook Hotel Trust Executes Contract to Sell Topaz Hotel for $33 Million
Pebblebrook Hotel Trust (NYSE: PEB) (the "Company") announced that it executed a contract to sell the 99-room Topaz Hotel in Washington, D.C. for $33.0 million to a third party.
The contracted sale price reflects a 19.5x EBITDA multiple and a 4.4% net operating income capitalization rate based on the hotel's operating performance for 2018. Based on the trailing 12-month period ended June 2019, the contracted sales price reflects an 18.2x EBITDA multiple and a 4.8% net operating income capitalization rate. The net operating income capitalization rates are after an assumed annual capital reserve of 4.0% of total hotel revenues.
The sale of Topaz Hotel is subject to normal closing conditions, and the Company offers no assurances that this sale will be completed on these terms, or at all. The Company is targeting to complete the sale in the fourth quarter of 2019 and continues to be encouraged with pricing levels and overall buyer interest in the investment markets.