Pebblebrook Hotel Trust to sell Hotel Zoe Fisherman’s Wharf

Pebblebrook Hotel Trust executed a contract to sell the 221-room Hotel Zoe Fisherman’s Wharf in San Francisco, for $68.5 million to a third party. Other terms were not disclosed. The property sale is subject to normal closing conditions. The company offers no assurances that the sale will be completed on these terms or at all. The sale is targeted to be completed later in the fourth quarter of 2023.

For the trailing 12 months ended Sept. 30, the hotel’s net loss is estimated at ($1.2) million, its net operating income is estimated at $2.2 million, and its earnings before interest, taxes, depreciation and amortization (EBITDA) is estimated at $2.7 million. The $68.5 million sales price reflects a 25.0x EBITDA multiple and a 3.2 percent net operating income capitalization rate (assuming a capital reserve of 4.0 percent of total hotel revenues).

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 the company’s common and preferred shares.