Pebblebrook Hotel Trust closes on $63M Florida hotel sale

Bethesda, Md.-based real estate investment trust Pebblebrook Hotel Trust has closed on the sale of the 157-room Hotel Colonnade Coral Gables (Fla.), Autograph Collection for $63 million to an as-yet unnamed third party.

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 equity shares.

For the trailing 12 months ending Dec. 31, the hotel’s net operating income was $4.1 million, and its earnings before interest, taxes, depreciation and amortization was $4.8 million. Based on the hotel’s operating performance for 2019, the $63 million sales price reflects a 15.4x EBITDA multiple and an 5.5 percent net operating income capitalization rate. (The net operating income for both periods is after an assumed annual capital reserve of 4 percent of total hotel revenues.)

Pebblebrook has unloaded several properties in the past year, including the Hotel Spero and the Marker—both in San Francisco—last summer. The company owns 49 hotels and resorts with approximately 12,500 guestrooms across 14 urban and resort markets.