BOSTON — Pebblebrook Hotel Trust (NYSE: PEB), a hospitality REIT, has sold an 826-space parking garage at Revere Hotel Boston Common, located at 200 Stuart St. in downtown Boston, for $95 million. The buyer was not disclosed.
The sale, which closed on June 23, also includes 10,500 square feet of vacant space on the ground floor.
Pebblebrook will utilize the proceeds from the sale for general business purposes, such as paying off outstanding debt or repurchasing some of its shares of common stock.
The company expects the acquisition to generate approximately $11.7 million in additional net income across the second, third and fourth quarters, and to reduce funds from operations (FFO) by $1.3 million during that period.
Since initiating a strategic disposition plan in 2016, the REIT has sold five hotels and two non-hotel assets that have generated $676.8 million in gross proceeds.
“This sale generates significant value for our shareholders at a very favorable price and overall capitalization rate,” says Jon Bortz, CEO and president of Pebblebrook, based in Bethesda, Md. “These property sales continue to allow us to take advantage of the value differential between the higher private market prices and values and the lower public market valuation of our company.”
Pebblebrook owns 28 hotels totaling 6,970 guestrooms across nine states and Washington, D.C. The company specializes in acquiring and investing primarily upscale, full-service hotels located in urban markets in major gateway cities.
The company’s portfolio posted revenue per available room (RevPAR) of $196, an average daily rate of $243 and 81 percent occupancy for the first quarter of 2017.
Pebblebrook’s stock price closed at $32.81 per share on Friday, June 23, up from $27.41 per share one year ago.
— Camren Skelton