Pebblebrook Hotel Trust has signed a contract to sell Hotel Zoe Fisherman's Wharf in San Francisco, California, to a third party for $68.5m.
The sale is subject to standard closing conditions, with no guarantee from the company regarding completion. The expected finalisation is set for the fourth quarter of 2023.
The sales price of $68.5m is based on a multiple of 25 times the earnings before interest, taxes, depreciation and amortisation (EBITDA) of the hotel recorded for the 12 months ending September 30, 2023.
It also represents a capitalisation rate of 3.2% for the net operating income, considering a capital reserve of 4% of total hotel revenues.
According to the company, the proceeds from the sale of Hotel Zoe Fisherman's Wharf will be used for general corporate purposes such as debt reduction and share buybacks.
The pet-friendly property features 221 guestrooms, including 11 suites with in-room spa options.
Guests at the property can dine at the neighbourhood Italian restaurant called Pescatore Trattoria, which serves daily breakfast and dinner, as well as brunch on the weekends.
The property hosts events at its six event venues, including The Courtyard, which can accommodate up to 120 guests.
Among amenities provided at the hotel include access to the fitness centre at Zoe’s sister San Francisco hotel, Argonaut Hotel along with valet parking and charging stations.
Additionally, the property provides complimentary one-hour electric bicycle rentals and two-hour bike rentals at a discounted charge.
The property is located 15 miles away from San Francisco International Airport at 425 North Point Street in San Francisco.
Guests at the property can also visit locations such as Haight-Ashbury, The Presidio, Castro district, Chinatown, Cole Valley and more.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust and has 47 hotels with around 12,200 guest rooms spanning 13 resort and urban markets.
