BETHESDA, MD—Pebblebrook Hotel Trust has closed on the sale of the 826-space parking garage, which included 10,500 sq. ft. of vacant ground floor space, at Revere Hotel Boston Common for $95 million.
The sale price of $95 million reflects a 23.5x EBITDA multiple and a four percent net operating income capitalization rate (after an assumed annual capital reserve of four percent of revenues) based on the trailing 12-month operating performance for the period ended May 31.
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.
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 EBITDA, adjusted FFO, adjusted FFO per diluted share and net income.