Pebblebrook Sells Beverly Hills Hotel For $44M To Cut Debt And Boost Shareholder Value

Pebblebrook Hotel Trust (NYSE:PEB) (the "Company" or "Pebblebrook") announced today that on November 19, 2025, it successfully completed the sale of the 133-room Montrose at Beverly Hills in West Hollywood, California for $44.25 million to a third party.

Based on the hotel's trailing twelve-month financial performance ended September 30, 2025, the $44.25 million sales price equates to an earnings before interest, taxes, depreciation, and amortization ("EBITDA") multiple of 16.1x and a net operating income ("NOI") capitalization rate of 5.2%, assuming a 4.0% capital reserve.

Pebblebrook expects to use the sale proceeds for general corporate purposes, including reducing outstanding debt, repurchasing the Company's common or preferred shares, and supporting other capital allocation priorities to enhance long-term shareholder value.

This transaction is not expected to affect the Company's current fourth-quarter or full-year 2025 Outlook, which was issued on November 5, 2025.

In addition to the sale of Montrose at Beverly Hills, the Company has one other hotel under contract at a sales price of $72.0 million. This transaction is expected to close during the fourth quarter, subject to customary closing conditions; however, there can be no assurance that the sale will be completed on the anticipated terms or timeline.peb