Pebblebrook Hotel Trust has completed the divestment of the 343-room, Liaison Capitol Hill in Washington, D.C. for $111m.
The sale price reflects a 16.9x EBITDA multiple and a 4.9% net operating income capitalisation rate as per the trailing twelve-month operating performance for the period ended 31 December 2018.
The firm plans to use the proceeds from the divestment for general business purposes which may include reducing its outstanding debt.
Following this divestment, the company estimates its total net debt to trailing 12-month corporate EBITDA to be approximately 4.8 times at the end of the first quarter 2019.
In May 2018, Pebblebrook Hotel Trust closed on the sale of the 140-room, Grand Hotel Minneapolis in Minneapolis, Minnesota for $30m.
The sale price included the 140-room hotel and the 57,000ft2 fitness center, which was fully leased to a third-party tenant until June 2019.
Proceeds from the sale of the Grand Hotel Minneapolis were utilised for general business purposes which included for reducing the company’s outstanding debt.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust. It acquires and invests primarily in upper upscale, full-service hotels located in urban markets in major cities.
It owns 62 hotels, totaling approximately 14,900 guest rooms, located in 10 states and the District of Columbia, in the following markets: Del Mar, California; Los Angeles, California (Beverly Hills, Santa Monica and West Hollywood); San Diego, California; San Francisco, California; Santa Cruz, California; Washington, DC; etc.