Pebblebrook Hotel Trust has sold the 335-room, Hotel Palomar Washington, DC for $141.5 million.
The sale price of $141.5 million reflects a 14.9x EBITDA multiple and a 5.9% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues) based on the hotel’s operating performance for 2018.
Proceeds from the sale of Hotel Palomar Washington, DC will be utilized for general business purposes which may include reducing the Company’s outstanding debt.
As a result of this completed sale, the Company estimates its total net debt to trailing 12-month corporate EBITDA will be approximately 4.7 times at the end of the first quarter 2019.
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