Pebblebrook To Sell D.C., Atlanta Hotels For $331M
Pebblebrook Hotel Trust is continuing to sell hotels after merging with another REIT in late 2018, with the latest deals coming in D.C. and Atlanta.
The Bethesda-based REIT announced Monday it executed a contract to sell the 237-room Sofitel Washington D.C. Lafayette Square and the 422-room InterContinental Buckhead Atlanta for a combined $331M. Pebblebrook did not disclose the buyer of the hotels, but it said it expects the deals to close this quarter.
The D.C. hotel at 806 15th St. NW sits about a quarter-mile from the White House. The hotel is part of the portfolio Pebblebrook acquired from its December 2018 merger with LaSalle Hotel Properties. LaSalle bought the property in 2010 for $95M.
Pebblebrook did not disclose the individual sale price for each hotel. But it said the D.C. hotel sold for a 5.7% net operating income capitalization rate.
The Atlanta hotel, at 3315 Peachtree Road NE, sits about a half-mile from the Lenox Square mall in the Buckhead neighborhood. Pebblebrook acquired it in 2010 for $105M, and the REIT said it sold it for a 6.4% net operating income capitalization rate.
The deals represent the latest in a string of hotel sales for Pebblebrook. It sold a portfolio of five properties in an $821M deal that coincided with the December 2018 closing of the LaSalle merger.
Last year, it sold several D.C. hotels, including the Kimpton Rouge, the Topaz Hotel, the Hotel Madera, the Hotel Palomar and the Liaison Capitol Hill. Pebblebrook also sold hotels in Boston, Los Angeles and Minneapolis following the LaSalle merger.