Pebblebrook sells Chamberlain West Hollywood Hotel for $43.5M

Pebblebrook Hotel Trust (NYSE:PEB) completed the sale of the Chamberlain West Hollywood Hotel in Los Angeles for $43.5 million, continuing an aggressive multi-year portfolio trimming strategy aimed at strengthening its balance sheet and returning capital to investors.

The transaction for the 115-room boutique hotel, finalized on May 27, values the property at a 14.5x multiple of trailing twelve-month earnings before interest, taxes, depreciation, and amortization (EBITDA) and a 5.9% net operating income (NOI) capitalization rate.

For the twelve months ended April 30, the Chamberlain generated EBITDA of $3 million and net operating income of $2.6 million, assuming a standard capital reserve of 4% of total hotel revenues.

Pebblebrook expects to allocate the net proceeds toward general corporate functions.

Management indicated that primary focus will be placed on paying down outstanding net debt and reducing preferred equity obligations.

The liquidity will also support opportunistic share repurchases of the company’s common stock alongside other high-return internal capital investments meant to bolster long-term equity valuation.