{"id":1004303897,"date":"2019-02-27T04:47:57","date_gmt":"2019-02-27T12:47:57","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004303897"},"modified":"2019-02-28T01:58:30","modified_gmt":"2019-02-28T09:58:30","slug":"pebblebrook-sells-dc-hotel-for-142m","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/pebblebrook-sells-dc-hotel-for-142m\/","title":{"rendered":"Pebblebrook Sells DC Hotel for $142M"},"content":{"rendered":"
\"\"<\/a>

Hotel Palomar Washington, DC<\/p><\/div>\n

Nearly three months after Pebblebrook Hotel Trust completed its $5.1 billion acquisition of LaSalle Hotel Properties<\/a>, the Bethesda, Md.-based REIT continues with its disposition program. The latest property to go is the 335-key Hotel Palomar Washington, DC, which sold for $141.5 million to an undisclosed buyer.<\/p>\n

The Hotel Palomar sale comes about two weeks after Pebblebrook closed on the disposition of another Washington, D.C., hotel\u2014the 343-key Liaison Capitol Hill, which sold for $111 million. Proceeds from the sales will be used for general business purposes, which may include reducing the company\u2019s outstanding debt.<\/p>\n

\u201cWe are extremely pleased with the success we\u2019ve had in executing our strategic disposition plan and expect to make significant additional progress on our plan in 2019, particularly in the next four to six months, taking advantage of the attractive private market values of our real estate, which are at a significant premium to our current public market valuation,\u201d <\/em>Thomas Fisher, Pebblebrook\u2019s chief information officer, said in a prepared statement on Monday, Feb. 25th, when the REIT released its fourth-quarter 2018 earnings report and provided guidance for 2019.<\/p>\n

The company, a REIT that acquires and invests primarily in upper upscale, full-service hotels located in major urban markets and resort areas, now owns 61 hotels totaling approximately 14,600 guestrooms in 10 states and Washington, D.C. Other markets the REIT is active in include Boston, Los Angeles, Chicago, Atlanta, Philadelphia, Seattle, San Francisco, San Diego and several Florida locations including Naples, Key West and Coral Gables.<\/p>\n

More dispositions details<\/strong><\/h2>\n

During Tuesday\u2019s earnings call with analysts, Pebblebrook executives noted the REIT has now sold seven legacy LaSalle hotels for a total of nearly $1.1 billion and one legacy Pebblebrook hotel since the Nov. 30 merger. That property, the Minneapolis Grand Hotel, sold for $30 million in December.<\/p>\n

Jon Bortz, chairman, president & CEO, stated on the call that the company expects to sell another $350 million in assets this year and between $400 million and $900 million over the next 18 months or so.<\/p>\n

\u201cWe\u2019ve been very pleased with the sales prices we\u2019ve achieved so far and we\u2019re confident in our ability to achieve our 2019 objectives, based upon strong current interest and the depth of interest in the kinds of hotels we plan to sell this year,\u201d<\/em> Bortz said on the call. \u201cAs we move through 2019, we\u2019ll be evaluating additional disposition candidates for either later this year or 2020 sales.\u201d<\/em><\/p>\n

Bortz said asset management and operating teams had been conducting portfolio-wide tours and reviews since September to determine which hotels did not fit into company\u2019s long-term vision and could be candidates for disposition. While he did not give names or locations, he did provide a clue during the analysts\u2019 call.<\/p>\n

\u201cWe continue to be focused primarily on the two coasts\u2014east and west. And we continue to hold a West Coast bias,\u201d <\/em>he said. \u201cAnd you should expect additional sales from the portfolio will be predominantly from either the East Coast or Central markets.\u201d<\/em><\/p>\n

Merger background<\/strong><\/h2>\n

In November, Pebblebrook received a $1.8 billion term loan to help provide the funding it needed to complete the pending merger with its Bethesda neighbor, LaSalle. The loan went toward paying off LaSalle\u2019s outstanding debt and other closing and transaction costs associated with the $5.1 billion merger. One of the costs revealed during the analysts\u2019 call was a $112 million termination fee it paid to private equity giant Blackstone. That\u2019s because throughout much of 2018 Blackstone was expected to acquire LaSalle. Last May, LaSalle had declined three unsolicited offers from Pebblebrook in favor of an all-cash $4.8 billion bid by Blackstone.<\/a> That merger agreement was terminated on Sept. 6; the same day Pebblebrook and LaSalle announced they had entered into a definitive merger agreement.<\/p>\n

Image courtesy of Kimpton Hotels<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

After acquiring LaSalle Hotel Properties in November, the REIT embarked upon a disposition program that so far has included eight properties and is expected to continue over the next 18 months.<\/p>\n","protected":false},"author":1068,"featured_media":1004304278,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21743,21808,21751,21783,11,21742,1615],"tags":[36434,33795,34709],"class_list":["post-1004303897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deals","category-featured","category-hotel","category-investment","category-midatlantic","category-latest","category-washington-dc","tag-jon-bortz","tag-lasalle-hotel-properties","tag-pebblebrook-hotel-trust"],"acf":[],"yoast_head":"\nPebblebrook Sells DC Hotel for $142M - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/pebblebrook-sells-dc-hotel-for-142m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pebblebrook Sells DC Hotel for $142M\" \/>\n<meta property=\"og:description\" content=\"After acquiring LaSalle Hotel Properties in November, the REIT embarked upon a disposition program that so far has included eight properties and is expected to continue over the next 18 months.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/pebblebrook-sells-dc-hotel-for-142m\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-27T12:47:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-02-28T09:58:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/02\/Hotel-Palomar-exterior.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"500\" \/>\n\t<meta property=\"og:image:height\" content=\"409\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/pebblebrook-sells-dc-hotel-for-142m\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/pebblebrook-sells-dc-hotel-for-142m\/\",\"name\":\"Pebblebrook Sells DC Hotel for $142M - 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