BETHESDA, Maryland—Pebblebrook Hotel Trust announced it closed on the sale of the 236-room Hotel Spero in San Francisco, California, for $71.0 million to a third party.
For the trailing twelve months ended June 30, 2022, the hotel’s net operating loss was ($1.6) million, and its Hotel EBITDA was ($1.4) million. Based on the hotel’s operating performance for 2019, the $71.0 million sales price reflects a 9.1 times EBITDA multiple and a 9.8 percent net operating income capitalization rate. The net operating income (loss) for both periods mentioned above is after an assumed annual capital reserve of 4.0 percent of total hotel revenues.
Proceeds from the sale of Hotel Spero will be used for general corporate purposes and to reduce the company’s outstanding debt borrowings associated with recent hotel acquisitions, in accordance with the company’s investment strategy.
