Business
Pebblebrook Hotel Trust Completes $72.0 Million Sale of The Westin Michigan Avenue Chicago
BETHESDA, Md., December 04, 2025--Pebblebrook Hotel Trust Completes $72.0 Million Sale of The Westin Michigan Avenue Chicago
About this update from Pebblebrook Hotel Trust
[{"type":"image","alt":"","displaySize":"","headline":null,"caption":"","credit":null,"className":"","disableSlideshowImg":false,"size":{"original":{"width":480,"height":400,"url":"https://media.zenfs.com/en/business-wire.com/65c27ec0c92e15f27ed3563d89b2348c"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/Z.v.SLLLzaNSFHrcqrvD3w--/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTgwMDtjZj13ZWJw/https://media.zenfs.com/en/business-wire.com/65c27ec0c92e15f27ed3563d89b2348c","width":480,"height":400}},"lazy":false},{"type":"text","content":"BETHESDA, Md., December 04, 2025--(BUSINESS WIRE)--Pebblebrook Hotel Trust (NYSE: PEB) (the "Company" or "Pebblebrook") announced today that on December 3, 2025, it successfully completed the sale of the 752-room Westin Michigan Avenue Chicago in Chicago, Illinois for $72.0 million to a third party.","length":320,"tagName":"p"},{"type":"text","content":"For the trailing twelve months ended September 30, 2025, the hotel generated earnings before interest, taxes, depreciation, and amortization ("EBITDA") of $4.6 million and net operating income ("NOI") of $2.5 million, assuming a capital reserve of 4.0% of total hotel revenues. The $72.0 million sales price equates to a 15.6x EBITDA multiple and a 3.5% NOI capitalization rate, before consideration of a brand-mandated property improvement plan and other significant capital expenditures.","length":509,"tagName":"p"},{"type":"text","content":"Pebblebrook expects to use the sale proceeds for general corporate purposes, with a primary focus on reducing outstanding debt and preferred equity, and opportunistically repurchasing the Company’s common shares, while supporting other capital allocation priorities to enhance long-term shareholder value.","length":305,"tagName":"p"},{"type":"text","content":"Balance Sheet and Capital Allocation Impact","length":43,"tagName":"p"},{"type":"text","content":"Following the sale of The Westin Michigan Avenue Chicago and the previously announced $44.25 million sale of Montrose at Beverly Hills, the Company will have reduced its outstanding debt by $100 million and its preferred securities outstanding by approximately $5 million. Following these transactions, Pebblebrook expects to have approximately $2.1 billion of consolidated debt and convertible notes outstanding and $761 million of preferred equity, with net debt...