Pebblebrook sells Hotel Zags for $10 million

• Pebblebrook Hotel Trust (NYSE:PEB) completed the sale of The Hotel Zags in Portland, Oregon, for $10 million.
• The 174-room hotel generated an estimated $0.8 million net operating loss and $0.6 million EBITDA loss over the trailing 12 months.
• Pebblebrook expects to use the proceeds for general corporate purposes, including potential share repurchases and other capital allocation priorities.

Pebblebrook Hotel Trust (NYSE:PEB) completed the $10 million sale of the 174-room Hotel Zags in Portland, Oregon, to a third party on October 8, 2026.

For the trailing 12 months ended August 31, the property generated an estimated net operating loss of $0.8 million after assuming an annual capital reserve equal to 4% of hotel revenue.

The hotel also recorded an estimated EBITDA loss of $0.6 million over the same period.

Pebblebrook said it expects to use the sale proceeds for general corporate purposes, including potential repurchases of common or preferred shares and other capital allocation priorities.

The company said the transaction is not expected to affect its current third-quarter 2026 outlook issued on July 29.

Pebblebrook plans to incorporate the Hotel Zags sale into its fourth-quarter and updated full-year 2026 outlook when it reports third-quarter results.

The disposal removes a loss-making property from Pebblebrook’s portfolio while providing $10 million in proceeds that management can allocate elsewhere.