Pebblebrook Hotel Trust has closed on the sale of the 189-room Villa Florence San Francisco on Union Square in San Francisco for $87.5 million to a third party.
Based on the hotel’s operating performance for 2019, the $87.5 million reflects a 12.4x EBITDA multiple and a 7.2 percent net operating income capitalization rate (after an assumed annual capital reserve of 4 percent of total hotel revenues). The EBITDA multiple and net operating income capitalization rate are adjusted for the annualized impact of current retail rental income and a one-time retail lease termination fee.
Proceeds from the sale of Villa Florence San Francisco on Union Square will be used for general corporate purposes and acquiring hotel properties in accordance with the company’s investment strategy.
