Pebblebrook Hotel Trust (NYSE: PEB) announced that on May 24, 2023, it closed on the sale of the 125-room Hotel Vintage Seattle in Seattle, WA for $33.7 million to a third party.
For the trailing twelve months ended March 31, 2023, the hotel’s net operating income was $0.8 million, and its Hotel EBITDA was $1.1 million, with the $33.7 million sales price reflecting a 31.0x EBITDA multiple and a 2.3% net operating income capitalization rate. Based on the hotel’s operating performance for 2019, the $33.7 million sales price reflects an 11.2x EBITDA multiple and a 7.3% 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 Vintage 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 (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 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.
| Pebblebrook Hotel Trust | |||||
| Hotel Vintage 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 | $1.6 |
| |||
| Adjustment: | |||||
| Depreciation and amortization | 1.4 |
| |||
| Hotel EBITDA | $3.0 |
| |||
| Adjustment: | |||||
| Capital reserve | (0.5 | ) | |||
| Hotel Net Operating Income | $2.5 |
| |||
| Pebblebrook Hotel Trust | ||||||||||
| Historical Operating Data | ||||||||||
| ($ 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 | 74% | 86% | 86% | 77% | 81% | |||||
| ADR | $251 | $274 | $272 | $250 | $262 | |||||
| RevPAR | $186 | $236 | $234 | $192 | $212 | |||||
| Hotel Revenues | $301.4 | $383.2 | $381.0 | $325.9 | $1,391.5 | |||||
| Hotel EBITDA | $77.2 | $136.1 | $130.6 | $87.7 | $431.6 | |||||
| Hotel EBITDA Margin | 25.6% | 35.5% | 34.3% | 26.9% | 31.0% | |||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||
| 2022 | 2022 | 2022 | 2022 | 2022 | ||||||
| Occupancy | 48% | 69% | 73% | 60% | 63% | |||||
| ADR | $300 | $323 | $325 | $295 | $312 | |||||
| RevPAR | $144 | $222 | $237 | $178 | $196 | |||||
| Hotel Revenues | $232.1 | $366.9 | $388.6 | $308.7 | $1,296.3 | |||||
| Hotel EBITDA | $46.6 | $126.0 | $123.5 | $63.8 | $360.0 | |||||
| Hotel EBITDA Margin | 20.1% | 34.4% | 31.8% | 20.7% | 27.8% | |||||
| First Quarter | ||||||||||
| 2023 | ||||||||||
| Occupancy | 58% | |||||||||
| ADR | $301 | |||||||||
| RevPAR | $176 | |||||||||
| Hotel Revenues | $294.6 | |||||||||
| Hotel EBITDA | $60.9 | |||||||||
| Hotel EBITDA Margin | 20.7% | |||||||||
| These historical hotel operating results include information for all of the hotels the Company owned as of May 24, 2023, (excluding LaPlaya Beach Club & Resort), following the sale of Hotel Vintage 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. | ||||||||||
| Pebblebrook Hotel Trust | |||||
| Hotel Vintage 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 | ($0.0 | ) | |||
| Adjustment: | |||||
| Depreciation and amortization | 1.1 |
| |||
| Hotel EBITDA | $1.1 |
| |||
| Adjustment: | |||||
| Capital reserve | (0.3 | ) | |||
| Hotel Net Operating Income | $0.8 |
| |||
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. | |||||