Pebblebrook Hotel Trust Sells Marina City Retail Space and Parking Facilities in Downtown Chicago for $30 Million

Pebblebrook Hotel Trust (NYSE: PEB) announced today that on December 21, 2023, it successfully completed the sale of the Marina City retail space and two parking facilities adjacent to its Hotel Chicago Downtown, Autograph Collection, for $30.0 million to a third party.

The sales transaction includes approximately 146,000 square feet of retail space and two parking facilities offering 900 spaces. The transaction reflects an approximate 6.4% capitalization rate based on the estimated net operating income for the year ending December 31, 2023.

Highlighting a year of robust activity in property dispositions, Pebblebrook has successfully executed seven property sales totaling $330.8 million in 2023. These sales cumulatively represent an approximate 20.6x EBITDA multiple and a 4.1% net operating income capitalization rate. This rate is calculated assuming a 4.0% capital reserve against total property revenues based on the trailing twelve-month performance preceding each sale.

Proceeds from the sale will be used for general corporate purposes, which may include reducing the Company’s outstanding debt and repurchasing the Company’s common and preferred shares.