Guestroom at the Hotel Monaco Seattle
  Guestroom at the Hotel Monaco Seattle

Pebblebrook Hotel Trust;

Pebblebrook Hotel Trust (NYSE: PEB) announced that on May 9, 2023, it closed on the sale of the 189-room Hotel Monaco Seattle in Seattle, WA for $63.3 million to a third party.

For the trailing twelve months ended March 31, 2023, the hotel’s net operating income was $1.6 million, and its Hotel EBITDA was $2.1 million, with the $63.3 million sales price reflecting a 30.7x EBITDA multiple and a 2.5% net operating income capitalization rate. Based on the hotel’s operating performance for 2019, the $63.3 million sales price reflects an 11.4x EBITDA multiple and a 7.6% 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 Hotel Monaco Seattle will be used for general corporate purposes, which may include reducing the Company’s outstanding debt and repurchasing common and preferred shares.

Pebblebrook Hotel Trust

Hotel Monaco Seattle

Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income

December 2019 Trailing Twelve Months

(Unaudited, in millions)

 

 

 

 

 

 

 

Twelve months ended

December 31,

 

 

 

2019

 
Hotel net income

$3.8

 
Adjustment:

Depreciation and amortization

1.8

 
Hotel EBITDA

$5.6

 
Adjustment:

Capital reserve

(0.8)

 
Hotel Net Operating Income

$4.8

 

 
 

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

 

 

 

 

2019

 

2019

 

2019

 

2019

 

2019

 

Occupancy

75%

86%

86%

77%

81%

ADR

$255

$275

$271

$251

$264

RevPAR

$190

$236

$233

$193

$213

 

Hotel Revenues

$321.5

$398.2

$391.2

$339.2

$1,450.0

Hotel EBITDA

$86.1

$141.6

$132.6

$92.0

$452.3

Hotel EBITDA Margin

26.8%

35.6%

33.9%

27.1%

31.2%

 

First Quarter

 

Second Quarter

 

Third Quarter

 

Fourth Quarter

 

Full Year

2022

 

2022

 

2022

 

2022

 

2022

 

Occupancy

49%

69%

73%

59%

62%

ADR

$314

$327

$326

$294

$316

RevPAR

$152

$226

$237

$175

$198

 

Hotel Revenues

$257.1

$388.2

$402.7

$311.2

$1,359.2

Hotel EBITDA

$59.9

$136.0

$128.7

$61.1

$385.7

Hotel EBITDA Margin

23.3%

35.0%

32.0%

19.6%

28.4%

 

First Quarter

2023

 

Occupancy

58%

ADR

$301

RevPAR

$173

 

Hotel Revenues

$298.0

Hotel EBITDA

$58.8

Hotel EBITDA Margin

19.7%

 

 

These historical hotel operating results include information for all of the hotels the Company owned as of May 9, 2023, following the sale of Hotel Monaco Seattle. These historical operating results include periods prior to the Company's ownership of the hotels. The information above does not reflect the Company's corporate general and administrative expense, interest expense, property acquisition costs, depreciation and amortization, taxes and other expenses. Any differences are a result of rounding.

The information above has not been audited and has been presented only for comparison purposes.

 

Pebblebrook Hotel Trust

Hotel Monaco Seattle

Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income

March 2023 Trailing Twelve Months

(Unaudited, in millions)

 

 

 

 

 

 

 

Twelve Months Ended March 31,

 

 

 

2023

 
Hotel net income

$0.4

 
Adjustment:

Depreciation and amortization

1.7

 
Hotel EBITDA

$2.1

 
Adjustment:

Capital reserve

(0.5)

 
Hotel Net Operating Income

$1.6

 

 

 
The Company’s presentation of the hotel’s estimated trailing twelve-month EBITDA and estimated trailing twelve-month net operating income after capital reserves should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the hotel’s financial performance. The table above is a reconciliation of the hotel’s estimated trailing twelve-month EBITDA and net operating income after capital reserves calculations to net income in accordance with GAAP. Any differences are a result of rounding.