Pebblebrook Hotel Trust has completed the sale of the Chamberlain West Hollywood Hotel in Los Angeles, California, US, for $43.5m.
The transaction involved the sale of the 115-room hotel to a third party.
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The hotel generated $3m in earnings before interest, taxes, depreciation, and amortisation (EBITDA). Its net operating income over the 12 months ending 30 April 2026, based on a 4% capital reserve assumption, was $2.6m.
According to Pebblebrook, the sale price implies a 14.5× EBITDA multiple and a net operating income (NOI) capitalisation rate of 5.9%.
The company has indicated it intends to use proceeds from the sale mainly to reduce outstanding net debt and preferred equity, as well as to repurchase common shares and support other investment priorities.
Including the Chamberlain transaction and two other property sales completed in Q4 2025, Pebblebrook has disposed of approximately $160m in assets at what it describes as private-market values.
Since 2021, the company has sold properties for a combined total of more than $1bn.
As part of the Chamberlain sale, Pebblebrook accepted preferred shares that carried an aggregate liquidation preference of $33.7m as partial payment from the buyer, valuing them at $26.1m for the deal.
This allowed the company to retire the preferred shares at a 23% discount to their liquidation preference. Following this move, Pebblebrook’s outstanding preferred equity was reduced to $720.6m.
The company’s recent capital management activities include cutting its outstanding debt by nearly $160m since late 2025 and retiring preferred shares with a total liquidation preference of $47m at a 23% discount.
During the same period, Pebblebrook repurchased $62m worth of its common shares at an average price of $11.51 per share.
In connection with the Chamberlain sale, Pebblebrook has revised its earnings outlook for 2026, removing the hotel from its same-property hotel EBITDA and operating metrics for the second through fourth quarters.
The updated 2026 guidance now forecasts adjusted earnings before interest, taxes, depreciation, and amortisation for real estate (EBITDAre) in a range of $334.5m to $346.5m. Adjusted funds from operations (FFO) are expected between $184m and $196m.
Second quarter 2026 net income is projected to fall between $18.8m and $22.8m.
In December 2025, Pebblebrook completed the sale of The Westin Michigan Avenue Chicago, a 752-room property in Illinois, US, for $72m to an undisclosed third party.
