Pebblebrook Hotel Trust (PEB), the real estate investment trust (REIT) focused primarily on urban and resort lifestyle hotels, recently announced the sale of its Villa Florence San Francisco property for $87.5 million. The sale has been made to a third party whose details have not been disclosed.
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Following the news, shares of the company declined 1.5% on Friday. The stock, however, pared its losses slightly to close at $21.11 in extended trade.
The sale price represents an EBITDA multiple of 12.4x and a net operating income capitalization rate of 7.2% based on the hotel’s operating performance in 2019.
Notably, the company intends to use the proceeds from the sale for general corporate purposes and acquiring hotel properties. (See Pebblebrook Hotel stock chart on TipRanks)
Recently, BTIG analyst James W Sullivan reiterated a Buy rating on the stock. The analyst’s price target of $27 implies upside potential of 28.1% from current levels.
Consensus among analysts is a Hold based on 1 Buy and 5 Holds. The average Pebblebrook Hotel price target of $25.60 implies upside potential of 21.5% from current levels. Shares have gained 50.9% over the past year.
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