The DoubleTree by Hilton Hotel Bethesda-Washington DC in Bethesda, Maryland has been sold by the property’s owner, Pebblebrook Hotel Trust for $50.1 million. Trading for $185,555 per room key, the 270 room hotel is located at 8120 Wisconsin Ave. The sale represents an 11.6x EBITDA multiple and a 7.4 percent net operating income capitalization rate, after an assumed annual capital reserve of 4 percent of total hotel revenues. Proceeds from the sale of DoubleTree Bethesda will be utilized for general business purposes which may include reducing the company’s outstanding debt. The identity of the buyer was not disclosed.
“We are pleased with the sale of the DoubleTree Bethesda,” noted Jon Bortz, CEO of Pebblebrook Hotel Trust. “This marks the third hotel sold under our strategic disposition plan that we initiated earlier this year. Following the sale of the DoubleTree Bethesda and the execution of our Manhattan asset exchange agreement, our strategic disposition plan has generated almost $250 million in gross proceeds. These property sales allow us to take advantage of the value differential seen across our portfolio between the public and private markets. We continue to remain confident in the buyer interest shown by a wide variety of both domestic and international hotel investors, particularly for high-quality, unencumbered hotels.”
