BETHESDA, Maryland—Pebblebrook Hotel Trust announced that it closed on the sale of The Heathman Hotel, a 151-room property in Portland, Oregon, for $45.0 million to a third party.
For the trailing twelve months ended December 31, 2022, the hotel’s net operating income was $1.0 million, and its Hotel EBITDA was $1.2 million. Based on the hotel’s operating performance for 2019, the $45.0 million sales price reflects a 10.7x EBITDA multiple and an 8.4 percent net operating income capitalization rate. The net operating income for both periods mentioned above is after an assumed annual capital reserve of 4.0 percent of total hotel revenues.
Proceeds from the sale of The Heathman Hotel will be used for general corporate purposes, which may include reducing the company’s outstanding debt and repurchasing common and preferred equity shares.