Pebblebrook Hotel Trust has completed the sale of the Hotel Palomar Washington, District of Columbia (DC) in a deal valued at $141.5m.
The sale price reflects a 14.9x EBITDA multiple and a 5.9% net operating income capitalisation rate based on the operating performance of Hotel Palomar for last year.
Hotel Palomar has amenities including 11,000ft² meeting space, 24-hour in-room dining provided by Urbana, a fitness centre, and a business centre, among others
Recently, Pebblebrook completed the sale of the 343-room Liaison Capitol Hill for $111m.
Pebblebrook said that the aggregate sales proceeds of $252.5m for these two sales reflect a 15.7x EBITDA multiple and a 5.5% net operating income capitalisation rate based on the operating performance of the hotels last year.
Pebblebrook will use the proceeds from the sale of the 335-room Hotel Palomar Washington, DC for general business purposes which may include reducing the company’s outstanding debt.
As a result of the sale, the company estimates its total net debt to trailing 12-month corporate EBITDA will be about 4.7 times at the end of the first quarter of this year.
Pebblebrook Hotel Trust owns 61 hotels, totalling about 14,600 guest rooms, located in 10 states and the DC, in Del Mar, California; Los Angeles, California; San Diego, California; San Francisco, California; Santa Cruz, California; Washington, DC.
The company also owns hotels in 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.