Pebblebrook Hotel Trust (NYSE: PEB) announced the completion of the sale of The Hotel Zags on October 8, 2026. The transaction involved the sale of the 174-room hotel located in Portland, Oregon, to a third party for a total consideration of $10.0 million.
The filing details the hotel's financial performance for the trailing twelve months ended August 31, 2026. After applying an assumed annual capital reserve of 4.0% of total hotel revenues, the hotel reported an estimated net operating loss of ($0.8) million. Its estimated earnings before interest, taxes, depreciation, and amortization (EBITDA) was ($0.6) million.
Pebblebrook stated that it intends to use the proceeds from the sale for general corporate purposes. These purposes include opportunistically repurchasing the Company’s common or preferred shares and supporting other capital allocation priorities intended to enhance long-term shareholder value.
The company noted that the transaction is not expected to affect its current third quarter 2026 Outlook, which was issued on July 29, 2026. The sale will be reflected in the Company’s fourth quarter and updated full-year 2026 Outlook when it reports third quarter 2026 results.
