Pebblebrook Hotel Trust to Sell Hotel Zags for $10.0 Million
The REIT said it will use proceeds for general corporate purposes, including opportunistic common or preferred share repurchases.
Pebblebrook Hotel Trust (PEB) agreed to sell The Hotel Zags in an asset purchase for $10.0 million.
The publicly traded real estate investment trust said it expects to use the sale proceeds for general corporate purposes, including opportunistically repurchasing the Company’s common or preferred shares and supporting other capital allocation priorities intended to enhance long-term shareholder value.
The $10.0 million asset purchase is a smaller step in a run of hotel dispositions Pebblebrook has completed as it recycles properties into debt reduction and buybacks. In May 2026, the REIT closed a $43.5 million sale of the 115-room Chamberlain West Hollywood Hotel, a price that equated to a 14.5x EBITDA multiple and a 5.9% NOI capitalization rate on trailing-twelve-month results ended April 30, 2026. That deal, together with two strategic dispositions completed in the fourth quarter of 2025, brought Pebblebrook’s recent asset-sale total to approximately $160 million at an aggregate 15.4x EBITDA multiple and 4.6% NOI capitalization rate. Since 2021, the company has sold more than $1.0 billion of properties.
Earlier in the same cycle, Pebblebrook completed a $44.25 million sale of the 133-room Montrose at Beverly Hills in November 2025, a price that equated to a 16.1x EBITDA multiple and a 5.2% NOI capitalization rate on trailing-twelve-month results ended September 30, 2025. In December 2025, it closed a $72.0 million sale of the 752-room Westin Michigan Avenue Chicago, which, on trailing-twelve-month results ended September 30, 2025, equated to a 15.6x EBITDA multiple and a 3.5% NOI capitalization rate before a brand-mandated property improvement plan.
After those two late-2025 closings, Pebblebrook said it would have reduced outstanding debt by $100 million and preferred securities by about $5 million, leaving approximately $2.1 billion of consolidated debt and convertible notes and $761 million of preferred equity, with net debt to trailing 12-month corporate EBITDA of about 5.9x. The Chamberlain sale also included Pebblebrook preferred shares with a $33.7 million liquidation preference accepted as partial consideration at an agreed value of about $26.1 million, allowing the company to retire those shares at a 23% discount to liquidation preference and further reduce preferred equity outstanding to $720.6 million.
Pebblebrook is the largest owner of urban and resort lifestyle hotels in the United States, with 45 hotels totaling approximately 12,000 guest rooms across 13 markets. The Hotel Zags sale continues that same playbook: a modest asset sale whose proceeds the company said it will direct toward opportunistic common or preferred share repurchases and other capital allocation priorities.