SYgle>Industry Information>Pebblebrook Hotel Sells Parking Garage at Revere Hotel Boston Common for $95.0 Million

Pebblebrook Hotel Sells Parking Garage at Revere Hotel Boston Common for $95.0 Million

Column: industry Tag: Pebblebrook Hotel,Pebblebrook Hotel Trust,Parking Garage,Revere Hotel Boston Common Published: 2017-06-27 16:50 Source: Author:

Pebblebrook Hotel Sells Parking Garage at Revere Hotel Boston Common for $95.0 million

　　Pebblebrook Hotel Trust (NYSE: PEB) today announced that it has closed on the sale of the 826-space parking garage, which included 10,500 square feet of vacant ground floor space, at Revere Hotel Boston Common for $95.0 million.

　　The sale price of $95.0 million reflects a 23.5x EBITDA multiple and a 4.0% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of revenues) based on the trailing twelve-month operating performance for the period ended May 31, 2017.

　　“We are extremely pleased with the sale of the parking garage at Revere Hotel Boston Common,” noted Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “This sale generates significant value for our shareholders at a very favorable price and overall capitalization rate. To date, we have sold 5 hotels and 2 non-hotel assets under our strategic disposition plan that we initiated early last year, which has generated $676.8 million in gross proceeds. These property sales continue to allow us to take advantage of the value differential between the higher private market prices and values and the lower public market valuation of our company.”

　　Proceeds from the sale of the parking garage at Revere Hotel Boston Common will be utilized for general business purposes, which may include further reducing the Company’s outstanding debt or repurchasing the Company’s common shares. The sale of the parking garage at Revere Hotel Boston Common closed on June 23, 2017.

　　Due to the sale, the garage will not be reported in the Company’s Same-Property statistics for the second, third or fourth quarters; however, the results during the Company’s ownership period during the second quarter will continue to be included in Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted Funds From Operations (“FFO”), Adjusted FFO per diluted share and Net Income. As a result of the sale, the Company expects that the Company’s financials will be impacted by the following amounts:

　　Second Quarter Impact

　　Net Income increased by approximately $12.8 million as a result of the estimated gain on sale of hotel properties of approximately $13.0 million

　　Same-Property EBITDA reduced by approximately $1.1 million

　　Adjusted EBITDA reduced by approximately $0.2 million

　　Adjusted FFO reduced by approximately $0.2 million

　　Adjusted FFO per diluted share reduced by approximately $0.00 per share

　　Second, Third and Fourth Quarters Combined Impact

　　Net Income increased by approximately $11.7 million as a result of the estimated gain on sale of hotel properties of approximately $13.0 million

　　Same-Property EBITDA reduced by approximately $3.6 million

　　Adjusted EBITDA reduced by approximately $2.7 million

　　Adjusted FFO reduced by approximately $1.3 million

　　Adjusted FFO per diluted share reduced by approximately $0.02 per share

　　The Company is not re-projecting or reaffirming its outlook for the second quarter or the full year issued on April 27, 2017 in any way other than to take into account the sale of the parking garage at Revere Hotel Boston Common.

　　If any of the foregoing estimates and assumptions prove to be inaccurate, actual results, including the outlook, may vary, and could vary significantly, from the amounts detailed above.

　　Pebblebrook Hotel Trust is a publicly traded real estate investment trust (“REIT”) organized to opportunistically acquire and invest primarily in upper upscale, full-service hotels located in urban markets in major gateway cities. The Company owns 28 hotels, with a total of 6,970 guest rooms. The Company owns hotels located in 9 states and the District of Columbia, including: Los Angeles, California (Beverly Hills, Santa Monica and West Hollywood); San Diego, California; San Francisco, California; Washington, DC; Coral Gables, Florida; Naples, Florida; Buckhead, Georgia; Boston, Massachusetts; Minneapolis, Minnesota; Portland, Oregon; Philadelphia, Pennsylvania; Nashville, Tennessee; Columbia River Gorge, Washington; and Seattle, Washington.

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