Kimpton Hotel Palomar Washington, D.C., a 335-room hotel located at 2121 P Street NW, has been sold by Pebblebrook Hotel Trust in a deal worth $141.5 million.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust (REIT) which acquires and invests mainly in upper upscale and full-service hotels in urban markets of major cities.
According to the Pebblebrook Trust press release, the sale reflects a “14.9x EBITDA multiple and a 5.9% net operating income capitalization rate (after an assumed annual capital reserve of 4.0 percent of total hotel revenues) based on the hotel’s operating performance for 2018.”
Along with recently announced sale of The Liaison Capitol Hill, the aggregate sale for the two properties totals $252.5 million. According to the company estimates, following the completed sale, total net debt of the company trailing 12-month corporate EBITDA will be about 4.7 times at the end of the first quarter 2019.
The company press release explained that the proceeds from the sale of Hotel Palomar Washington, D.C. will be used for general business purposes and for the reduction of the company’s outstanding debt.
Pebblebrook Hotel Trust owns 61 hotels with a total of 14,600 guest rooms across 10 states and in the District of Columbia.
Hotel Palomar has an artistic design and offers guests a rich, modern urban refuge, according to its website, including an Italian restaurant, Urbana, which provides top-notch service and amenities. Event and meeting facilities are also provided, in addition to an engaging social space for style-conscious guests.
Located in the Dupont Circle neighborhood, the central location of the hotel provides easy access to the Metro and universities, as well as shops, restaurants, and bars in the area.