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Pebblebrook (PEB) Disposes of Hotel Monaco Seattle for $63.3M
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Pebblebrook Hotel Trust (PEB - Free Report) recently disposed of Hotel Monaco Seattle in Seattle, WA, to a third party for $63.3 million. The move is in sync with the company’s investment strategy.
PEB recorded a net operating income of $1.6 million and a Hotel EBITDA of $2.1 million for the hotel in the trailing 12 months ended Mar 31, 2023.
The sale price of the 189-room property denotes an EBITDA multiple of 11.4X and a net operating income capitalization rate of 7.6% based on the hotel’s operating performance for 2019. Thus, the disposition of the property seems a strategic fit for Pebblebrook.
The company intends to use the sale proceeds for general corporate purposes, which may include reducing its outstanding debt, and repurchasing its common and preferred shares.
In a similar move, in March 2023, Pebblebrook completed the sale of The Hotel Colonnade Coral Gables, Autograph Collection in Coral Gables, FL. The 157-room property was sold to a third party for $63 million. The sale price denoted an EBITDA multiple of 15.4X and a net operating income capitalization rate of 5.5%, based on the hotel’s operating performance for 2019.
Further, in the same month, PEB closed the disposition of 909 North Michigan Avenue, a 5,860 square feet, three-tenant fully occupied high-street retail parcel, to a third party for $27.3 million. The sale price of the property reflected almost a 7.7% cap rate based on its net operating income for 2022.
This lodging real estate investment trust (REIT) recently reported first-quarter 2023 adjusted funds from operations per share of 18 cents, beating the Zacks Consensus Estimate by 63.6%. Its quarterly performance was driven by healthy leisure demand and continued recovery in business demand, both group and transient, which benefited its urban markets and resorts.
The same-property total revenue per available room (RevPAR) was up 23.8% year over year in the quarter. The same-property EBITDA of $59.3 million was 25.4% above the 2022 level. Moreover, the company made $26.2 million in capital investments during the first quarter.
PEB’s strategic capital-deployment efforts bode well for its growth. It aims to optimize the use of its dispositions’ proceeds and is focused on acquisitions and development activities.
Shares of this Zacks Rank #3 (Hold) company have gained 3.7% in the quarter-to-date period against the industry’s fall of 1.2%.
Image: Bigstock
Pebblebrook (PEB) Disposes of Hotel Monaco Seattle for $63.3M
Pebblebrook Hotel Trust (PEB - Free Report) recently disposed of Hotel Monaco Seattle in Seattle, WA, to a third party for $63.3 million. The move is in sync with the company’s investment strategy.
PEB recorded a net operating income of $1.6 million and a Hotel EBITDA of $2.1 million for the hotel in the trailing 12 months ended Mar 31, 2023.
The sale price of the 189-room property denotes an EBITDA multiple of 11.4X and a net operating income capitalization rate of 7.6% based on the hotel’s operating performance for 2019. Thus, the disposition of the property seems a strategic fit for Pebblebrook.
The company intends to use the sale proceeds for general corporate purposes, which may include reducing its outstanding debt, and repurchasing its common and preferred shares.
In a similar move, in March 2023, Pebblebrook completed the sale of The Hotel Colonnade Coral Gables, Autograph Collection in Coral Gables, FL. The 157-room property was sold to a third party for $63 million. The sale price denoted an EBITDA multiple of 15.4X and a net operating income capitalization rate of 5.5%, based on the hotel’s operating performance for 2019.
Further, in the same month, PEB closed the disposition of 909 North Michigan Avenue, a 5,860 square feet, three-tenant fully occupied high-street retail parcel, to a third party for $27.3 million. The sale price of the property reflected almost a 7.7% cap rate based on its net operating income for 2022.
This lodging real estate investment trust (REIT) recently reported first-quarter 2023 adjusted funds from operations per share of 18 cents, beating the Zacks Consensus Estimate by 63.6%. Its quarterly performance was driven by healthy leisure demand and continued recovery in business demand, both group and transient, which benefited its urban markets and resorts.
The same-property total revenue per available room (RevPAR) was up 23.8% year over year in the quarter. The same-property EBITDA of $59.3 million was 25.4% above the 2022 level. Moreover, the company made $26.2 million in capital investments during the first quarter.
PEB’s strategic capital-deployment efforts bode well for its growth. It aims to optimize the use of its dispositions’ proceeds and is focused on acquisitions and development activities.
Shares of this Zacks Rank #3 (Hold) company have gained 3.7% in the quarter-to-date period against the industry’s fall of 1.2%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) , Iron Mountain (IRM - Free Report) and Host Hotels & Resorts (HST - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is pegged at $2.13.
The Zacks Consensus Estimate for Iron Mountain’s ongoing year’s FFO per share is pegged at $3.96.
The Zacks Consensus Estimate for Host Hotels & Resorts’ 2023 FFO per share is pegged at $1.87.
Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.