Pebblebrook Hotel Trust completed the sale of the 133-room Montrose at Beverly Hills in West Hollywood, Calif. for $44.25 million to a third party. Other terms and conditions were not disclosed.
Based on the hotel’s trailing twelve-month financial performance ended Sept. 30, 2025, the $44.25 million sales price equates to an earnings before interest, taxes, depreciation, and amortization multiple of 16.1x and a net operating income capitalization rate of 5.2 percent, assuming a 4.0 percent 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 Nov. 5.
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.