Pebblebrook completes sale of Hotel Vintage Portland

Pebblebrook Hotel Trust has closed on the sale of the 117-room Hotel Vintage Portland in Portland, OR, for $32.9 million to a third party.

For the trailing 12 months ended June 30, the hotel’s net operating loss was $100,000, and its hotel EBITDA was $100,000. Based on the hotel’s operating performance for 2019, the $32.9 million sales price reflects an 11.7x EBITDA multiple and a 7.1% net operating income capitalization rate. The net operating income (loss) for both periods mentioned above is after an assumed annual capital reserve of 4.0% of total hotel revenues.

Proceeds from the sale will be used for general corporate purposes, which may include reducing the company’s outstanding debt borrowings associated with recent hotel acquisitions, in accordance with its investment strategy.