US-based real estate investment trust company Pebblebrook Hotel Trust has announced the sale of Kimpton Hotel Monaco in Seattle, Washington for $63.3m.
Hotel Monaco features 189 guest rooms. It was sold to the Canadian hospitality company InnVest Hotels.
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Kimpton Hotels and Restaurants will continue to manage the property.
InnVest Hotels CEO Lydia Chen said: “This milestone marks a significant moment for our company as we expand our footprint into the US hospitality market. Hotel Monaco’s outstanding reputation and prime location make it an ideal addition to our portfolio.
“With our commitment to excellence, we will embark on a comprehensive renovation project that will transform Hotel Monaco into a symbol of modern luxury.
“Through this renovation, we will enhance every aspect of the guest experience, creating an unforgettable stay that seamlessly combines innovative design, modern amenities and exceptional service.”
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By GlobalDataHotel Monaco’s net operating income was $1.6m for the 12 months ending 31 March 2023. Its EBITDA was $2.1m, with a $63.3m sales price indicating a 30.7x EBITDA multiple and a 2.5% net operating income capitalisation rate.
The sales price represents an 11.4x EBITDA multiple and a 7.6% net operating income capitalisation rate in the hotel’s financial performance in 2019.
Net operating income for both periods is calculated after an annual capital reserve of 4.0% of total hotel revenues is estimated.
According to the company, sale proceeds will be used for general business goals, including the reduction of the company’s current financial obligations and the repurchase of preferred and common equity.
Pebblebrook Hotel Trust is said to be the largest owner of urban and resort lifestyle hotels and resorts in the US.
The company operates 48 hotels and resorts in 14 urban and resort regions, totalling roughly 12,300 guest rooms.
In the first quarter of 2023, Pebblebrook reported a net loss of $22.0m, completed $135.3m of property sales and made $26.2m of capital investments.
