Pebblebrook completes sale of Hotel Vintage Seattle

Pebblebrook Hotel Trust has closed on the sale of the 125-room Hotel Vintage Seattle for $33.7 million to a third party.

For the trailing 12 months ended March 31, the hotel’s net operating income was $800 thousand, and its hotel EBITDA was $1.1 million, with the $33.7 million sale price reflecting a 31.0x EBITDA multiple and a 2.3% net operating income capitalization rate. Based on the hotel’s operating performance for 2019, the sale price reflects an 11.2x EBITDA multiple and a 7.3% 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 hotel will be used for general corporate purposes, which may include reducing the company’s outstanding debt and repurchasing common and preferred shares.