US-based publicly traded real estate investment trust Pebblebrook Hotel Trust has completed the sale of the 125-room Hotel Vintage Seattle in Seattle, Washington, for $33.7m.

This property was sold to a third party, whose name was not disclosed.

The hotel’s net operating income was $0.8m for the fiscal year ending 31 March 2023. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at $1.1m.

The sales consideration marks a 31-times EBITDA multiple and a 2.3% net operating income capitalisation rate.

This price implies an 11.2-times EBITDA multiple and a 7.3% net operating income capitalisation rate depending on the operating performance of the property in 2019.

Pebblebrook Hotel Trust noted that “the net operating income for both periods mentioned above is after an assumed annual capital reserve of 4.0% of total hotel revenues.”

Sale proceeds will be utilised to lower the company’s debt and for repurchasing common and preferred stock.

Hotel Vintage Seattle features 125 guest rooms and several other amenities, including free access to hotel bicycles, an equipped fitness centre and a pet park.

Furthermore, the property has a 660ft² event area with free Wi-Fi access, as well as multimedia and audio-visual support.

Pebblebrook Hotel Trust operates 47 hotels and resorts in 13 urban and resort regions, comprising around 12,200 guest rooms.

Earlier this month, the company struck a $63.3m deal to offload the Kimpton Hotel Monaco, a 189-key property in Seattle, Washington, which was purchased by Canadian hotel company InnVest Hotels.