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California  + Los Angeles  + Hospitality  | 

Pebblebrook Completes Sale of 133-Key West Hollywood Hotel

Pebblebrook Hotel Trust completed the sale of the 133-key Montrose at Beverly Hills in West Hollywood for $44.25 million to a third party. Based on the hotel’s trailing 12-month financial performance ended Sept. 30, the sale price equates to an EBITDA multiple of 16.1x and a NOI cap rate of 5.2%, assuming a 4.0% capital reserve.

The Bethesda, MD-based lodging REIT 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. The sale is not expected to affect the company’s current fourth-quarter or full-year 2025 Outlook, issued earlier this month.

In addition to the sale of Montrose at Beverly Hills, Pebblebrook has one other hotel under contract at a sale price of $72.0 million. This transaction is expected to close in Q4.

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Pebblebrook Hotel Trust

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

  • ◦Sale/Acquisition