Pebblebrook Hotel Trust has closed on the sale of the 221-room Hotel Zoe Fisherman’s Wharf in San Francisco for $68.5 million to a third party.
For the trailing 12 months ended Sept. 30, the hotel’s net loss was $1.2 million, its net operating income was $2.2 million and its earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $2.7 million. The $68.5 million sales price reflects a 25.0x EBITDA multiple and a 3.2% net operating income capitalization rate (assuming a capital reserve of 4.0% of total hotel revenues).
Year-to-date, the company has completed $300.8 million of property dispositions comprised of six property sales. The $300.8 million aggregate sales proceeds reflect a combined 21.8x EBITDA multiple and a 3.8% net operating income capitalization rate (assuming a capital reserve of 4.0% of total hotel revenues) based on the trailing 12-month performance prior to the completion of each respective sale, or the trailing 12-month performance ended Sept. 30 in the case of Hotel Zoe.
Proceeds from the sale of Hotel Zoe Fisherman’s Wharf will be used for general corporate purposes, including reducing the company’s outstanding debt and repurchasing its common and preferred shares.