189 Room Villa Florence San Francisco on Union Square in San Francisco, CA Sold for $87.5 Million

Villa Florence San Francisco on Union Square - Entrance
Villa Florence San Francisco on Union Square

Pebblebrook Hotel Trust (NYSE: PEB) today announced that it closed on the sale of the 189-room Villa Florence San Francisco on Union Square in San Francisco, CA for $87.5 million to a third party.

Based on the hotel’s operating performance for 2019, the $87.5 million reflects a 12.4x EBITDA multiple and a 7.2% net operating income capitalization rate (after an assumed annual capital reserve of 4.0% of total hotel revenues). The EBITDA multiple and net operating income capitalization rate are adjusted for the annualized impact of current retail rental income and a one-time retail lease termination fee.

Proceeds from the sale of Villa Florence San Francisco on Union Square will be used for general corporate purposes and acquiring hotel properties in accordance with the Company’s investment strategy.

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 51 hotels, totaling approximately 12,600 guest rooms across 14 urban and resort markets with a focus on the west coast gateway cities.

Pebblebrook Hotel Trust
Villa Florence San Francisco on Union Square
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income
Trailing Twelve Months
(Unaudited, in millions)
     
   

Twelve months ended
December 31,

   

2019

     
Hotel net income  

$3.1

     
Adjustment:    
Depreciation and amortization  

3.9

     
Hotel EBITDA  

$7.0

     
Adjustment:    
Capital reserve  

(0.7

)

     
Hotel Net Operating Income  

$6.3

     
     
 
     
 

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%

87%

87%

78%

82%

ADR  

$249

$270

$264

$246

$258

RevPAR  

$186

$234

$230

$193

$211

   
Hotel Revenues  

$313.9

$391.1

$384.1

$339.1

$1,428.3

Hotel EBITDA  

$83.1

$140.9

$132.1

$97.0

$453.1

Hotel EBITDA Margin  

26.5%

36.0%

34.4%

28.6%

31.7%

   
   

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

   

2020

2020

2020

2020

2020

   
Occupancy  

56%

4%

21%

22%

26%

ADR  

$248

$265

$218

$197

$231

RevPAR  

$138

$11

$47

$43

$60

   
Hotel Revenues  

$241.0

$24.2

$81.9

$78.3

$425.4

Hotel EBITDA  

$36.6

($38.2)

($15.2)

($16.3)

($33.2)

Hotel EBITDA Margin  

15.2%

(157.8%)

(18.6%)

(20.8%)

(7.8%)

   
   

First Quarter

Second Quarter

   

2021

2021

   
Occupancy  

20%

39%

ADR  

$239

$249

RevPAR  

$49

$98

   
Hotel Revenues  

$87.1

$171.4

Hotel EBITDA  

($13.3)

$31.3

Hotel EBITDA Margin  

(15.3%)

18.3%

                     
These historical hotel operating results include information for all of the hotels the Company owned as of September 9, 2021, following the sale of Villa Florence San Francisco on Union 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.