Pebblebrook Hotel Trust closed on the sale of its 117-room Kimpton Hotel Vintage Portland in Oregon for $32.9 million to an undisclosed third party.
The Bethesda, Maryland-based hotel real estate investment trust has been an active buyer and seller this year with intentions to be a net seller for the remainder of 2022.
The company acquired the hotel in 2012 as part of a two-property deal along with the Hotel Vintage Park Seattle for a combined $63 million.
According to a news release, the company said the Kimpton Hotel Vintage Portland's net operating loss was $100,000 for the trailing 12 months ending June 30. Its hotel earnings before interest, taxes, depreciation and amortization was $100,000.
Based on the property’s 2019 performance, the sales price reflects an 11.7 times EBITDA multiple and a 7.1% net operating income capitalization rate. Its net operating loss for both time periods is after an assumed annual capital reserve of 4% of total hotel revenue.
The company will use proceeds from the sale for general corporate purposes. That may include reducing its outstanding debt borrowings associated with its recent hotel acquisitions.
As part of its portfolio strategy, Pebblebrook most recently sold the 236-room Hotel Spero in San Francisco in late August for $71 million, neighbor to 208-room The Marker San Francisco that it sold at the end of June for $77 million. It also sold the 306-room Sofitel Philadelphia at Rittenhouse Square for $80 million in August.
Pebblebrook acquired the 257-room Gurney’s Newport Resort & Marina in Newport, Rhode Island, for $174 million in late June and the 119-room Inn on Fifth in Naples, Florida, for $156 million in May.