Pebblebrook Checks Out of Two Hotel Assets
- Jun 02, 2016
Los Angeles, Miami, Boston– Pebblebrook Hotel Trust is hot off an important slew of asset sales that have secured the company more than $110 million. The real estate investment trust that specializes in the hospitality market has recently closed on the sale of three properties: The Redbury Hotel in Los Angeles, the Viceroy Hotel in Miami, and a plot of land near the Revere Hotel Boston Common in Boston.
Funds sourced through the sale of the properties will be used by Pebblebrook to reduce its debt, offer cash dividends, as well as other business purposes. According to the statement announcing the transactions, the company closed on the sale of the land parcel on May 5, while the two hotel sales closed on June 1.
Located at 1717 Vine St. in Los Angeles, The Redbury Hotel is a 57-key, all-suite upscale property that was sold for $40.9 million. Bearing a 5.2 percent cap rate, the property was sold for a price that indicates a 15.5x EBIDTA multiple based on trailing 12-month operating performance up to the end of April this year. The Redbury Hotel had been purchased by the Bethesda-based REIT for $34 million back in 2013.
Viceroy Miami is located at 485 Brickell Ave. in an area that includes the Miami River Walk, as well as American Airlines Arena, home of the NBA’s Miami Heat. Pebblebrook sold the hotel for $64.5 million at a cap rate of 4.2 percent. The 148-key upscale hotel had been part of Pebblebrook’s holdings since 2011 when it was acquired for $36.5 million. The hotel has already been rebranded as W Miami by the new owner, Qatari entity Al Rayyan Tourism Investment Co., a subsidiary of Al Faisal Holding Co.
Pebblebrook’s remaining portfolio consists of 29 wholly owned facilities with more than 7,200 rooms. The company also has a 49 percent joint venture interest in six hotels that total 1,787 rooms.
Image courtesy of The Redbury