Pebblebrook Hotel Trust has closed on the sale of the 189-room Hotel Monaco Seattle for $63.3 million to a third party.
For the trailing 12 months ended March 31, the hotel’s net operating income was $1.6 million, and its hotel EBITDA was $2.1 million, with the $63.3 million sales price reflecting a 30.7x EBITDA multiple and a 2.5% net operating income capitalization rate. Based on the hotel’s operating performance for 2019, the sale price reflects an 11.4x EBITDA multiple and a 7.6% net operating income capitalization rate. The net operating income for both periods is after an assumed annual capital reserve of 4.0% of total hotel revenues.
Proceeds from the sale of the hotel will be used for general corporate purposes, which may include reducing the company’s outstanding debt and repurchasing common and preferred shares.