Pebblebrook Divests Hotel Vintage Seattle for Slightly More Than It Paid
Pebblebrook Hotel Trust closed on the sale of the 125-key Hotel Vintage Seattle in Seattle for $33.7 million to an unidentified third party. Last fall, the Bethesda, MD-based lodging REIT sold the Hotel Vintage Portland at a comparable price. The Seattle property’s sale price was only slightly more than Pebblebrook paid for it in 2012.
For the trailing 12 months ended March 31, 2023, the hotel’s NOI was $0.8 million, and its hotel EBITDA was $1.1 million, with the sale price reflecting a 31.0x EBITDA multiple and a 2.3% NOI capitalization rate, according to Pebblebrook. Based on the hotel’s operating performance for 2019, the sale price reflects an 11.2x EBITDA multiple and a 7.3% NOI cap rate.
The REIT said Thursday that proceeds from the sale of Hotel Vintage Seattle will be used for general corporate purposes, which may include reducing outstanding debt and repurchasing common and preferred shares.