Pebblebrook Hotel Trust has entered into a contract to sell the 221-room Hotel Zoe Fisherman’s Wharf in San Francisco for $68.5 million to an undisclosed third party. The transaction is expected to be finalized in the fourth quarter of 2023.
Based on its financial performance for the trailing twelve months ending September 30, the hotel recorded a net loss of approximately $1.2 million, with estimated NOI and EBITDA at $2.2 million and $2.7 million respectively.The sales price of $68.5 million reflects an EBITDA multiple of 25x and a NOI cap rate of 3.2%, assuming a capital reserve equaling4%of total hotel revenues.
The proceeds from this sale will be utilized for general corporate purposes including reducing outstanding debt and repurchasing common and preferred shares by Pebblebrook headquartered in Bethesda, MD.This recent development marks another milestone as Pebblebrook continues its strategic divestment efforts within their portfolio.
