(EDITOR’S NOTE: According to public documents, the buyer of the property is Aliso Viejo, Calif.-based Pacifica Hotels. This purchase marks the company’s first expansion into the Seattle market. So far, the company has primarily invested in hotel properties from downtown Los Angeles to the Central Coast, according to its website. In 2022, the company acquired a hotel property in Portland from Pebblebrook for $32.9 million.)
BETHESDA, Md. — Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) announced that on May 24, 2023, it closed on the sale of the 125-room Hotel Vintage Seattle in Seattle, WA for $33.7 million ($269,600 per room) to a third party.
For the trailing twelve months ended March 31, 2023, the hotel’s net operating income was $0.8 million, and its Hotel EBITDA was $1.1 million, with the $33.7 million sales price reflecting a 31.0x EBITDA multiple and a 2.3 percent net operating income capitalization rate. Based on the hotel’s operating performance for 2019, the $33.7 million sales price reflects an 11.2x EBITDA multiple and a 7.3 percent net operating income capitalization rate. The net operating income for both periods mentioned above is after an assumed annual capital reserve of 4.0 percent of total hotel revenues.
Proceeds from the sale of Hotel Vintage Seattle will be used for general corporate purposes, which may include reducing the Company’s outstanding debt and repurchasing common and preferred shares.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.