Pebblebrook Hotel Trust executed a contract to sell the 422-room InterContinental Buckhead Atlanta and the 237-room Sofitel Washington DC Lafayette Square for $331 million to a third party. The company expects to close the sale, which is still subject to normal closing conditions, in the first quarter of 2020.
Based on InterContinental Buckhead Atlanta’s estimated 2019 operating performance, the contracted sales price reflects a 13.0 multiple on earnings before interest, tax, depreciation and amortization and a 6.8 percent net operating income capitalization rate. Pebblebrook adjusted both the EBITDA multiple and net operating income capitalization rate for the estimated impact of one-time extraordinary events.
Based on Sofitel Washington DC Lafayette Square’s estimated 2019 operating performance, the contracted sales price reflects a 15.2 EBITDA multiple and a 5.7 percent net operating income capitalization rate.
Pebblebrook Hotel Trust owns 56 hotels, totaling approximately 14,000 guestrooms across 16 markets.