Hotel Transaction Washington D.C.

Pebblebrook Hotel Trust Completes Sale of Rouge Hotell in Washington, D.C. for $42.0 Million

Rouge Hotel - Lobby
Pebblebrook Hotel Trust Completes Sale of Rouge Hotell in Washington, D.C. for $42.0 Million

Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) announced that it closed on the sale of the 137-room Rouge Hotel in Washington, D.C. for $42.0 million to a third party.

The sale price of $42.0 million reflects a 17.4x EBITDA multiple and a 5.0% net operating income capitalization rate based on the hotel’s operating performance for 2018. Based on the trailing 12-month period ended June 30, 2019, the contracted sales price reflects a 19.3x EBITDA multiple and a 4.5% net operating income capitalization rate. The net operating income capitalization rates are after an assumed annual capital reserve of 4.0% of total hotel revenues.

Proceeds from the sale of Rouge Hotel will be utilized for general business purposes which may include reducing the Company’s outstanding debt. As a result of this completed sale, the Company estimates its total net debt to trailing 12-month corporate EBITDA will be approximately 4.6 times at the end of the third quarter 2019.



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