Publicly traded real estate investment trust Pebblebrook Hotel Trust has successfully completed the sale of Hotel Amarano Burbank in the US.
The hotel is located in Los Angeles, California and consists of 132 guest rooms.
The sale value stands at $72.9m. Other details about the transaction remain undisclosed.
However, the funds from the divestment will be used by Pebblebrook Hotel Trust for general business purposes, including decreasing its outstanding debt.
In a statement, Pebblebrook Hotel Trust said: “As a result of this completed sale, the Company estimates its total net debt to trailing 12-month corporate EBITDA will be approximately 4.6 times at the end of the third quarter 2019.”
“The sale price of $72.9m reflects a 15.8x EBITDA multiple and a 5.7% 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.”
The company, which is said to be the largest owner of urban and resort lifestyle hotels in the US, owns 59 hotels with 14,300 rooms in 16 urban and resort markets.