California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
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.
- ◦Sale/Acquisition