Hotel Transaction Los Angeles

Pebblebrook Hotel Trust Completes Sale of Hotel Amarano Burbank

Hotel Amarano Burbank - Pool
Pebblebrook Hotel Trust Completes Sale of Hotel Amarano Burbank

Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) yesterday announced that it closed on the sale of the 132-room Hotel Amarano Burbank in Los Angeles, California for $72.9 million.

The sale price of $72.9 million reflects a 15.8x EBITDA multiple and a 5.7% 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. Based on the trailing 12-month period ended March 2019, the contracted sales price reflects a 16.9x EBITDA multiple and a 5.3% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues). Both the EBITDA multiples and net operating income capitalization rates are adjusted for the estimated annualized impact of real estate taxes for California’s Proposition 13.

Proceeds from the sale of the Hotel Amarano Burbank 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 4.6 times at the end of the third quarter 2019.

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 59 hotels, totaling approximately 14,300 guest rooms across 16 urban and resort markets with a focus on the west coast gateway cities.

Pebblebrook Hotel Trust
Hotel Amarano Burbank
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income
Trailing Twelve Months
(Unaudited, in millions)
         
        Twelve months ended

December 31,

       

2018

         
Hotel net income    

$2.7

         
Adjustment:      
  Depreciation and amortization    

1.9

         
Hotel EBITDA    

$4.6

         
Adjustment:      
  Capital reserve    

(0.5)

         
Hotel Net Operating Income    

$4.1

 

 

Pebblebrook Hotel Trust
Hotel Amarano Burbank
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income
Trailing Twelve Months
(Unaudited, in millions)
         
        Twelve months ended

March 31,

       

2019

         
Hotel net income    

$2.4

         
Adjustment:      
  Depreciation and amortization    

1.9

         
Hotel EBITDA    

$4.3

         
Adjustment:      
  Capital reserve    

(0.4)

         
Hotel Net Operating Income    

$3.9

 

 

Pebblebrook Hotel Trust
Historical Operating Data
($ in millions, except ADR and RevPAR)
(Unaudited)
                         
                         
Historical Operating Data:                  
        First Quarter   Second Quarter   Third Quarter   Fourth Quarter   Full Year
       

2018

 

2018

 

2018

 

2018

 

2018

                         
Occupancy    

76%

 

87%

 

89%

 

77%

 

82%

ADR    

$237

 

$262

 

$260

 

$246

 

$252

RevPAR    

$180

 

$228

 

$230

 

$191

 

$207

                         
Hotel Revenues    

$343.2

 

$429.2

 

$428.0

 

$374.6

 

$1,575.1

Hotel EBITDA    

$96.0

 

$159.1

 

$155.9

 

$109.8

 

$520.9

Hotel EBITDA Margin  

28.0%

 

37.1%

 

36.4%

 

29.3%

 

33.1%

                         
        First Quarter                
       

2019

               
                         
Occupancy    

75%

               
ADR    

$250

               
RevPAR    

$188

               
                         
Hotel Revenues    

$358.7

               
Hotel EBITDA    

$98.8

               
Hotel EBITDA Margin  

27.6%

               



Logos, product and company names mentioned are the property of their respective owners.