* Buys Bethesda hotel for $67.1 mln
* Co's first buy since going public last year
June 7 Pebblebrook Hotel Trust (PEB.N) said it
bought the Doubletree Bethesda Hotel and Executive Meeting
Center for $67.1 million, the first deal for the company that
was formed to take advantage of acquisition opportunities in
the lodging space.
Pebblebrook said it funded the acquisition of the 269-room,
upscale hotel located in downtown Bethesda, through its initial
The hotel will continue to be operated according to a
franchise agreement with Doubletree, a subsidiary of Hilton
Worldwide, and will be managed by Thayer Lodging Group.
Pebblebrook was formed in October and went public in
December for about $350 million.
The Maryland-based company said it expects the hotel to
generate earnings before interest, tax, depreciation and
amortization of about $5.1 million to $5.6 million and net
operating income, after capital reserves, of about $4.4 million
to $4.9 million.
This does not include the amount the company plans to shell
out over the next 12 to 24 months on guest room improvements
and repairs to the hotel's underground garage and the impact of
the revamps on the hotel's EBITDA and net operating income.
The company, led by LaSalle Hotel Properties (LHO.N)
founder Jon Bortz, has also signed agreements for four other
Shares of the company closed at $18.36 Friday on the New
York Stock Exchange.
(Reporting by Abhishek Takle in Bangalore; Editing by Don