Seattle & Northwest + Seattle + Hospitality | May 25, 2023

Pebblebrook Hotel Trust has sold the 125-key Hotel Vintage Seattle in Seattle for slightly more than it paid for the property in 2012

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.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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