In Brief: Pebblebrook Hotel Trust has completed the $10 million sale of The Hotel Zags, signaling continued efforts by the REIT to refine its property portfolio and reallocate capital amid changing market dynamics.
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Image Credit The Hotel Zags
Pebblebrook Hotel Trust (NYSE: PEB) announced yesterday that it completed the sale of The Hotel Zags, a 174-room hotel in Portland, Oregon, to a third party on October 8, 2026, for $10.0 million.
For the trailing twelve months ended August 31, 2026, the hotel’s estimated net operating loss was ($0.8) million, after an assumed annual capital reserve of 4.0% of total hotel revenues, and its estimated hotel earnings before interest, taxes, depreciation, and amortization (“EBITDA”) was ($0.6) million.
Pebblebrook expects to use the sale proceeds for general corporate purposes, including opportunistically repurchasing the Company’s common or preferred shares and supporting other capital allocation priorities intended to enhance long-term shareholder value.
This transaction is not expected to affect the Company’s current third quarter 2026 Outlook, which was issued on July 29, 2026. The Company will reflect the sale in its fourth quarter and update its full-year 2026 Outlook when it reports third-quarter 2026 results.