Brookfield Property Partners L.P. executed a contract to acquire InterContinental Buckhead Atlanta Hotel and Sofitel Washington DC Lafayette Square from Pebblebrook Hotel Trust for approximately $260 million.

Brookfield Property Partners L.P. (NasdaqGS:BPY) executed a contract to acquire InterContinental Buckhead Atlanta Hotel and Sofitel Washington DC Lafayette Square from Pebblebrook Hotel Trust (NYSE:PEB) for approximately $260 million on January 9, 2020. Brookfield Property secured a $255.4 million cross-collateralized mortgage from Bank of America and JP Morgan Chase to finance the deal. For the twelve months ended December 31, 2019, Sofitel Washington DC Lafayette Square reported net income of $4.1 million, EBITDA of $8.1 million and net operating income of $7 million and InterContinental Buckhead Atlanta reported net income of $13.2 million, EBITDA of $16 million and net operating income of $14.1 million.

The sale of InterContinental Buckhead Atlanta and Sofitel Washington DC Lafayette Square is subject to normal closing conditions. The transaction is expected to close in the first quarter of 2020. As of February 27, 2020, the transaction is expected to close by the end of the quarter.

Mark Elliott, Dan Peek, Pete Dannemiller, Cyrus Vazifdar, Nate Ries and Jeff Berkman of Hodges Ward Elliott, Inc. acted as financial advisors to Pebblebrook Hotel Trust. Lawrence Britvan of Hodges Ward Elliott advised the buyer on the acquisition financing.