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Sofitel Philadelphia at Rittenhouse Square Hotel
Pebblebrook Hotel Trust (NYSE: PEB) today announced that on August 2, 2022, it closed on the sale of the 306-room Sofitel Philadelphia at Rittenhouse Square in Philadelphia, PA for $80.0 million to a third party.
For the trailing twelve months ended June 30, 2022, the hotel’s net operating income was $3.1 million, and its Hotel EBITDA was $3.8 million. Based on the hotel’s operating performance for 2019, the $80.0 million sales price reflects a 10.0x EBITDA multiple and an 8.6% net operating income capitalization rate. The net operating income for both periods mentioned above is after an assumed annual capital reserve of 4.0% of total hotel revenues.
Proceeds from the sale of Sofitel Philadelphia at Rittenhouse Square will be used for general corporate purposes and reducing the Company’s outstanding debt borrowings associated with recent hotel acquisitions, in accordance with the Company’s investment strategy.
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 53 hotels and resorts, totaling approximately 13,100 guest rooms across 15 urban and resort markets
| Pebblebrook Hotel Trust | ||||
| Sofitel Philadelphia at Rittenhouse Square | ||||
| Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income | ||||
| June 2022 Trailing Twelve Months | ||||
| (Unaudited, in millions) | ||||
| Twelve Months Ended June 30, | ||||
| 2022 | ||||
| Hotel net income | $ | 0.5 | ||
| Adjustment: | ||||
| Depreciation and amortization | 3.3 | |||
| Hotel EBITDA | $ | 3.8 | ||
| Adjustment: | ||||
| Capital reserve | (0.7 | ) | ||
| Hotel Net Operating Income | $ | 3.1 | ||
| Pebblebrook Hotel Trust | ||||
| Sofitel Philadelphia at Rittenhouse Square | ||||
| Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income | ||||
| December 2019 Trailing Twelve Months | ||||
| (Unaudited, in millions) | ||||
| Twelve months ended December 31, | ||||
| 2019 | ||||
| Hotel net income | $ | 4.7 | ||
| Adjustment: | ||||
| Depreciation and amortization | 3.3 | |||
| Hotel EBITDA | $ | 8.0 | ||
| Adjustment: | ||||
| Capital reserve | (1.2 | ) | ||
| Hotel Net Operating Income | $ | 6.8 | ||
| Pebblebrook Hotel Trust | ||||||||||||||||||||
| Historical Operating Data | ||||||||||||||||||||
| ($ in millions, except ADR and RevPAR) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Historical Operating Data: | ||||||||||||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||
| 2019 | 2019 | 2019 | 2019 | 2019 | ||||||||||||||||
| Occupancy | 75 | % | 86 | % | 86 | % | 77 | % | 81 | % | ||||||||||
| ADR | $ | 253 | $ | 271 | $ | 268 | $ | 247 | $ | 260 | ||||||||||
| RevPAR | $ | 189 | $ | 233 | $ | 231 | $ | 191 | $ | 211 | ||||||||||
| Hotel Revenues | $ | 340.6 | $ | 418.1 | $ | 411.9 | $ | 358.1 | $ | 1,528.8 | ||||||||||
| Hotel EBITDA | $ | 91.8 | $ | 148.0 | $ | 139.9 | $ | 97.2 | $ | 476.8 | ||||||||||
| Hotel EBITDA Margin | 26.9 | % | 35.4 | % | 34.0 | % | 27.1 | % | 31.2 | % | ||||||||||
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||
| 2021 | 2021 | 2021 | 2021 | 2021 | ||||||||||||||||
| Occupancy | 22 | % | 42 | % | 53 | % | 52 | % | 42 | % | ||||||||||
| ADR | $ | 264 | $ | 264 | $ | 289 | $ | 264 | $ | 272 | ||||||||||
| RevPAR | $ | 59 | $ | 111 | $ | 155 | $ | 136 | $ | 116 | ||||||||||
| Hotel Revenues | $ | 110.8 | $ | 207.0 | $ | 282.5 | $ | 259.2 | $ | 859.5 | ||||||||||
| Hotel EBITDA | ($ | 4.5 | ) | $ | 45.9 | $ | 83.8 | $ | 57.8 | $ | 183.0 | |||||||||
| Hotel EBITDA Margin | (4.1 | %) | 22.2 | % | 29.7 | % | 22.3 | % | 21.3 | % | ||||||||||
| First Quarter | Second Quarter | |||||||||||||||||||
| 2022 | 2022 | |||||||||||||||||||
| Occupancy | 48 | % | 68 | % | ||||||||||||||||
| ADR | $ | 310 | $ | 322 | ||||||||||||||||
| RevPAR | $ | 148 | $ | 220 | ||||||||||||||||
| Hotel Revenues | $ | 265.9 | $ | 400.7 | ||||||||||||||||
| Hotel EBITDA | $ | 60.7 | $ | 139.0 | ||||||||||||||||
| Hotel EBITDA Margin | 22.8 | % | 34.7 | % | ||||||||||||||||
| These historical hotel operating results include information for all of the hotels the Company owned as of August 2, 2022, following the sale of Sofitel Philadelphia at Rittenhouse Square. These historical operating results include periods prior to the Company's ownership of the hotels. The information above does not reflect the Company's corporate general and administrative expense, interest expense, property acquisition costs, depreciation and amortization, taxes and other expenses. Any differences are a result of rounding. The information above has not been audited and has been presented only for comparison purposes. | ||||||||||||||||||||