Pebblebrook Hotel Trust has closed on the sale of the 157-room Hotel Colonnade Coral Gables, Autograph Collection in Coral Gables, FL, for $63 million to a third party.
For the trailing 12 months ended Dec. 31, 2022, the hotel’s net operating income was $4.1 million, and its hotel EBITDA was $4.8 million. Based on the hotel’s operating performance for 2019, the $63 million sales price reflects a 15.4x EBITDA multiple and a 5.5% net operating income capitalization rate. The net operating income for both periods mentioned above is after an assumed annual capital reserve of 4% of total hotel revenues.
Proceeds from the sale of the property will be used for general corporate purposes, which may include reducing the company’s outstanding debt and repurchasing common and preferred equity shares.