Pebblebrook Hotel Trust has sold The Hotel Zags, a 174-room property in Portland, Oregon, for $10m to an undisclosed third party.
The company plans to use the proceeds for general corporate purposes.
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These may include repurchase of its common or preferred shares, alongside other capital-allocation priorities aimed at supporting long-term shareholder value.
The divestment follows a period of loss incurred by the property.
For the 12 months ending 31 August 2026, The Hotel Zags recorded an estimated net operating loss of $0.8m, based on an assumed annual capital reserve equal to 4% of total hotel revenue.
Estimated hotel EBITDA for the period was $0.6m.
According to its website, pet friendly Hotel Zags includes multiple types of accommodations. It also includes meeting and event space, including two private dining rooms, a courtyard and a sundry shop.
Pebblebrook said the disposal is not expected to alter its third-quarter 2026 outlook.
The company will incorporate the transaction into its fourth-quarter and revised full-year 2026 outlook when it reports third-quarter results.
Pebblebrook Hotel Trust is a publicly traded real estate investment trust and owns 42 hotels with around 10,800 rooms across 14 urban and resort markets in the US.
In May, Pebblebrook Hotel Trust completed the $43.5m sale of the 115-room Chamberlain West Hollywood Hotel in Los Angeles, California, to a third party.
Pebblebrook at the time said proceeds from that transaction would primarily be directed towards reducing net debt and preferred equity, repurchasing common shares, and other investment priorities.
Since 2021, Pebblebrook has sold properties with a combined value of more than $1bn.
