Pebblebrook Hotel Trust Completes Sale of Sir Francis Drake Hotel and Provides an Update on Hotel Reopenings
BETHESDA, Md.--(BUSINESS WIRE)--Apr 5, 2021--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that it closed on the sale of the 416-room Kimpton Sir Francis Drake Hotel in San Francisco, CA to a third party on April 1, 2021, generating $157.6 million of net proceeds after customary closing costs.
Based on the hotel’s operating performance for 2019, the $157.6 million of net proceeds reflects an 11.8x EBITDA multiple and a 7.2% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues). The Company purchased Sir Francis Drake Hotel for $90.0 million in 2010 as its second hotel. The property was a very successful investment for the Company, delivering a significant gain on sale and an 11-year compounded internal rate of return of over 12% a year.
Proceeds from the sale of Sir Francis Drake Hotel will be utilized for general business purposes, which may include reducing the Company’s outstanding debt.
Reopening of Additional Hotels
The Company has recently reopened operations at the following five urban hotels:
- Argonaut Hotel San Francisco;
- Harbor Court Hotel San Francisco;
- Hotel Monaco Washington DC;
- Hotel Zelos San Francisco; and
- Revere Hotel Boston Common.
With these recent hotel reopenings, the Company has now reopened 44 of the 52 hotels and resorts in its portfolio. These 44 properties accounted for 86% of the Company’s 2019 Hotel EBITDA. The Company’s remaining suspended hotels are expected to reopen in the coming weeks and months as demand recovers.
About Pebblebrook Hotel Trust
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 52 hotels, totaling approximately 12,800 guest rooms across 14 urban and resort markets with a focus on the west coast gateway cities. For more information, visit www.pebblebrookhotels.com and follow us at @PebblebrookPEB.
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Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS MARYLAND CALIFORNIA DISTRICT OF COLUMBIA
INDUSTRY KEYWORD: REIT LODGING COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY TRAVEL
SOURCE: Pebblebrook Hotel Trust
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PUB: 04/05/2021 07:00 AM/DISC: 04/05/2021 07:01 AM