Pebblebrook Hotel Trust Completes Sale of InterContinental Buckhead Atlanta and Sofitel Washington DC Lafayette Square
Main Photo: The InterContinental Buckhead Atalanta
Date: May 2020
Location: Buckhead, Atlanta, Georgia and Lafayette Square, Washington DC, USA
Name: The InterContinental Buckhead Atlanta and the Sofitel Washington DC Lafayette Square
No. of Keys: 422 and 237
Seller: Pebblebrook Hotel Trust has announced that it closed on the sale of the two hotels for $331.0 million to a third party on March 6, 2020.
For InterContinental Buckhead Atlanta, the contracted sale price reflects, based on 2019 figures, a 13 x EBITDA multiple and a 6.8% net operating income capitalisation rate. Both the EBITDA multiple and net operating income capitalisation rate based on operating performance for 2019 are adjusted for the estimated impact of one-time extraordinary events.
For Sofitel Washington DC Lafayette Square, the contracted sale price reflects a 15.2 x EBITDA multiple and a 5.7% net operating income capitalisation rate.
For both properties combined, based on the hotels’ operating performance for 2019, the contracted sales price reflects a 13.7 x EBITDA multiple and a 6.4% net operating income capitalisation rate. All the above net operating income capitalisation rates are after an assumed annual capital reserve of 4.0% of total hotel revenues.
Proceeds from the sale of InterContinental Buckhead Atlanta and Sofitel Washington DC Lafayette Square will be utilised for general business purposes which may include reducing the Company’s outstanding debt.
Pebblebrook acquired the Atalanta hotel for US$105m in 2010 from IHG.
Buyer: Undisclosed
Price: US$331m
Price per Key: US$502,276
THPT Comment: Some healthy multiples here….deal negotiated pre Covid-19 but closed in March.
First Seen: Hotel Executive
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