Pebblebrook Hotel Trust (NYSE: PEB) yesterday announced that it has closed on the sale of the 252-room, upper upscale Dumont NYC in New York, New York for $118.0 million.
The sale price of $118.0 million reflects a 25.2x EBITDA multiple and a 3.3% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues) based on the trailing twelve-month operating performance for the period ended May 31, 2017.
“We are very excited to announce the sale of the Dumont NYC,” noted Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “With the completion of this sale, we have now completely exited the New York market. To date, our strategic disposition plan has generated a total of $581.8 million in gross proceeds, and we’re pleased with the success we’ve achieved as we continue to take advantage of the disparity between private market values and public market values.”
Proceeds from the sale of the Dumont NYC will be utilized for general business purposes, which may include reducing the Company’s outstanding debt or repurchasing the Company’s common shares. Following the sale of the Dumont NYC, the Company’s estimated net debt to trailing 12-month corporate EBITDA will decline to approximately 4.0 times.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust (“REIT”) organized to opportunistically acquire and invest primarily in upper upscale, full-service hotels located in urban markets in major gateway cities. The Company owns 28 hotels, with a total of 6,970 guest rooms. The Company owns hotels located in 9 states and the District of Columbia, including: Los Angeles, California (Beverly Hills, Santa Monica and West Hollywood); San Diego, California; San Francisco, California; Washington, DC; Coral Gables, Florida; Naples, Florida; Buckhead, Georgia; Boston, Massachusetts; Minneapolis, Minnesota; Portland, Oregon; Philadelphia, Pennsylvania; Nashville, Tennessee; Columbia River Gorge, Washington; and Seattle, Washington.
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