Liaison Capitol Hill Sold for $111M; More U.S. Transactions

NATIONAL REPORT—Two hotel sales are complete in the Washington, DC area, plus a transaction in Texas. Here’s a closer look at the recent deals:

Pebblebrook Completes Sale of Liaison Capitol Hill

Pebblebrook Hotel Trust has closed on the sale of the 343-room, Liaison Capitol Hill in Washington, DC for $111 million. The sale price reflects a 16.9x EBITDA multiple and a 4.9% net operating income capitalization rate (after an assumed annual capital reserve of 4% of total hotel revenues) based on the trailing 12-month operating performance for the period ended Dec. 31, 2018. Proceeds from the sale of the Liaison Capitol Hill will be utilized for general business purposes, which may include reducing the Pebblebrook’s outstanding debt. As a result of this completed sale, Pebblebrook estimates its total net debt to trailing 12-month corporate EBITDA will be approximately 4.8 times at the end of the first quarter 2019.

HREC Investment Advisors Arranges Sale of Hampton Inn Potomac Mills Woodbridge

HREC Investment Advisors has arranged the sale of the 87-room Hampton Inn Potomac Mills Woodbridge in Woodbridge, VA. The hotel was acquired by Richmond, VA-based JP Hospitality. HREC Investment Advisors represented the seller during the transaction. The sale was negotiated by Kevin Hanley, SVP in the Washington, DC office; Ketan Patel, managing director in the Washington DC office; and Dana Weinberg, an affiliate broker in Virginia.

HVS Brokerage & Advisory Sell Holiday Inn Express & Suites Victoria

HVS Brokerage & Advisory represented Aum Lodging Ltd. based in Sugar Land, TX, in the sale of the 76-room Holiday Inn Express & Suites Victoria in Victoria, TX to Branson Grand Hotel LLC in Branson, MO. The HVS team assisted Aum Lodging Ltd. in completing an accretive sale process on the Holiday Inn Express & Suites Victoria. The Victoria MSA has been resilient, despite the recent turmoil in oil prices. This specific MSA is experiencing a $5-billion economic expansion due to growth in the petrochemical industry.