OEH: THE LOWER THE EBITDA, THE HIGHER THE MULTIPLE!

06/02/09 06:42PM EDT

OEH announced after the close that it sold the 109 room Lapa Palace in Lisbon for $41.8 million. OEH deemed it important to identify the huge 22x EBITDA multiple of the transaction. The property generated under $2 million in EBITDA. Who cares what the multiple is? On a per key basis, this palace sold for $383k per key, hardly a trophy value. We had the property valued higher.

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