Pebblebrook Hotel Trust (NYSE: PEB) today announced that on February 22, 2023, it closed on the sale of the 151-room The Heathman Hotel in Portland, OR for $45.0 million to a third party.
For the trailing twelve months ended December 31, 2022, the hotel's net operating income was $1.0 million, and its Hotel EBITDA was $1.2 million. Based on the hotel's operating performance for 2019, the $45.0 million sales price reflects a 10.7x EBITDA multiple and an 8.4% net operating income capitalization rate. The net operating income for both periods mentioned above is after an assumed annual capital reserve of 4.0% of total hotel revenues.
Proceeds from the sale of The Heathman Hotel will be used for general corporate purposes, which may include reducing the Company's outstanding debt and repurchasing common and preferred equity shares.
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 50 hotels and resorts, totaling approximately 12,600 guest rooms across 15 urban and resort markets.
| Pebblebrook Hotel Trust | ||
| The Heathman Hotel | ||
| Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income | ||
| December 2022 Trailing Twelve Months | ||
| (Unaudited, in millions) | ||
| Twelve Months Ended December 31, | ||
| 2022 | ||
| Hotel net income | ($0.9 | ) |
| Adjustment: | ||
| Depreciation and amortization | 2.1 |
|
| Hotel EBITDA | $1.2 |
|
| Adjustment: | ||
| Capital reserve | (0.2 | ) |
| Hotel Net Operating Income | $1.0 |
|