US-based real estate investment trust Pebblebrook Hotel Trust has finalised the sale of the Montrose at Beverly Hills, a 133-room property located in West Hollywood, California for $44.25m.
The transaction with an undisclosed third party closed on 19 November 2025.
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The agreed sale price, measured against the hotel’s financial performance over the 12 months ending 30 September, reflects earnings before interest, taxes, depreciation, and amortisation (EBITDA) multiple of 16.1 and a net operating income capitalisation rate of 5.2%, based on a capital reserve assumption of 4%.
The company intends to allocate the proceeds from this sale towards general corporate activities.
These include paying down existing debt, share repurchases—whether common or preferred—and other capital deployment initiatives in line with its strategic aims.
Pebblebrook stated that this transaction will not impact its previously published financial guidance for the fourth quarter or the full year 2025, as released on 5 November.
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By GlobalDataIn addition to this sale, the trust has one further hotel currently under contract for $72m.
This second transaction is scheduled for completion in the fourth quarter of the year, pending standard closing requirements.
The company noted there is no guarantee that this additional sale will be finalised on the terms or schedule currently anticipated.
Earlier in November, Pebblebrook released its financial results for the third quarter (Q3) of 2025. Same-property total revenue per available room (RevPAR) dropped by 1.5% compared to Q3 2024.
During the same period, occupancy rose by nearly 190 basis points, while average daily rate (ADR) fell by 5.4%. Non-room revenue increased by 1.7%.
The company expects full year 2025 net loss between $67.5m and $58.5m, and projects same-property total RevPAR growth in the range of negative 0.1% to positive 1.1%, with the midpoint lowered by 30 basis points.
In September 2025, Pebblebrook initiated a private placement of convertible senior notes that will mature in 2030, targeting $350m in gross proceeds.
