Bethesda, Md.-based real estate investment trust Pebblebrook Hotel Trust has closed on the sale of the 189-room Hotel Monaco Seattle for $63.3 million to an as-yet unnamed third party.
Proceeds from the sale will be used for general corporate purposes, which may include reducing the company’s outstanding debt and repurchasing common and preferred shares.
For the trailing 12 months ended March 31, the hotel’s net operating income was $1.6 million, and its earnings before interest, taxes, depreciation and amortization was $2.1 million, with the $63.3 million sales price reflecting a 30.7x EBITDA multiple and a 2.5 percent net operating income capitalization rate. Based on the hotel’s operating performance for 2019, the $63.3 million sales price reflects an 11.4x EBITDA multiple and a 7.6 percent net operating income capitalization rate. The net operating income for both periods mentioned above is after an assumed annual capital reserve of 4 percent of total hotel revenues.
Earlier this year, Pebblebrook Hotel Trust closed on the sale of the 157-room Hotel Colonnade Coral Gables (Fla.), Autograph Collection for $63 million.