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Pebblebrook Divests Dupont Circle Hotel for $142M
Bethesda, MD-based Pebblebrook Hotel Trust closed on the sale of the 335-room Hotel Palomar Washington, D.C. for $141.5 million. The sale price reflects a 14.9x EBITDA multiple and a 5.9% net operating income capitalization rate, after an assumed annual capital reserve of 4% of total hotel revenues, based on the hotel’s operating performance for 2018.
The Dupont Circle property is located at 2121 P Street NW, and was acquired by an undisclosed entity. Pebblebrook is reportedly still working to sell three other Kimpton-managed D.C. hotels, including the 82-room Hotel Madera, the 99-room Topaz Hotel and the 137-room Rouge Hotel.
Proceeds from the sale of Hotel Palomar Washington, D.C. will be utilized for general business purposes, which may include reducing the company’s outstanding debt. As a result of this completed sale, Pebblebrook estimates its total net debt to trailing 12-month corporate EBITDA will be approximately 4.7 times at the end of the first quarter 2019.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Sale/Acquisition