BETHESDA, MD--Pebblebrook Hotel Trust (the “Company”) today announced that it has closed on the separate sales of Viceroy Miami in Miami, Florida for $64.5 million, The Redbury Hotel in Los Angeles, California for $40.9 million and an excess land parcel adjacent to Revere Hotel Boston Common in Boston, Massachusetts for $6.0 million.
In May 2011, the Company acquired the 148-room, luxury, full-service Viceroy Miami for $36.5 million. The sale price of $64.5 million reflects a 17.7x EBITDA multiple and a 4.2% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues) based on the trailing twelve-month operating performance for the period ended April 30, 2016.
In August 2013, the Company acquired the 57-room, all-suite, luxury, full-service The Redbury Hotel for $34.0 million. The sale price of $40.9 million reflects a 15.5x EBITDA multiple and a 5.2% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues) based on the trailing twelve-month operating performance for the period ended April 30, 2016.
“We are extremely pleased with the separate sales of Viceroy Miami, The Redbury Hotel and the undeveloped adjacent land parcel at Revere Hotel Boston Common,” noted Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “All of these properties have been excellent investments for the Company, and the sale prices clearly demonstrate the disparity between private market values for our hotels and the value of our company as determined by the public market. With the first dispositions in our strategic plan, which is geared to deliver this value differential to our shareholders, we remain encouraged by the interest shown by a wide variety of both domestic and international hotel investors in the major urban markets, particularly for high-quality, unencumbered hotels.”
Proceeds from the separate sales of Viceroy Miami, The Redbury Hotel and the land parcel at Revere Hotel Boston Common will be utilized for general business purposes which may include reducing the Company’s outstanding debt, special cash dividends resulting from taxable gains on the dispositions and repurchasing the Company’s common shares. The sales of both Viceroy Miami and The Redbury Hotel closed on June 1, 2016 and the sale of the land at Revere Hotel Boston Common previously closed on May 5, 2016.