Pebblebrook Hotel Trust Completes $43.5 Million Sale of Chamberlain West Hollywood Hotel

Pebblebrook Hotel Trust (NYSE: PEB) announced today that on May 27, 2026, it successfully completed the sale of the 115-room Chamberlain West Hollywood Hotel in Los Angeles, California for $43.5 million to a third party.

For the trailing twelve months ended April 30, 2026, the hotel generated earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of $3.0 million and net operating income (“NOI”) of $2.6 million, assuming a capital reserve of 4.0% of total hotel revenues. The $43.5 million sales price equates to a 14.5x EBITDA multiple and a 5.9% NOI capitalization rate.

Pebblebrook expects to use the sale proceeds for general corporate purposes, with a primary focus on reducing outstanding net debt and preferred equity, opportunistically repurchasing the Company’s common shares, and supporting other high-return capital allocation priorities intended to enhance long-term shareholder value.

Including this transaction and the two strategic dispositions completed in the fourth quarter of 2025, Pebblebrook has completed approximately $160 million of asset sales at attractive private-market values, representing an aggregate 15.4x EBITDA multiple and 4.6% NOI capitalization rate. Since 2021, Pebblebrook has sold over $1.0 billion of properties, demonstrating its continued ability to monetize assets at private-market values and allocate capital toward debt reduction, accretive preferred and common share repurchases and other high-return uses.

Balance Sheet Impact

In connection with the sale, the Company accepted Pebblebrook preferred shares with an aggregate liquidation preference of $33.7 million as partial consideration from the buyer, at an agreed value of approximately $26.1 million. This enabled the Company to retire these preferred shares at a 23% discount to their liquidation preference, further reducing preferred equity outstanding to $720.6 million.

Since late 2025, Pebblebrook has continued its disciplined capital allocation strategy, using net property sales proceeds and free operating cash flow to strengthen its balance sheet and increase long-term per-share value. Over this period, the Company has reduced outstanding debt by nearly $160 million, retired preferred shares with an aggregate liquidation preference of $47 million at an average discount of 23%, and repurchased $62 million of common shares, representing 5.4 million shares at an average price of $11.51 per share. These actions have enhanced financial flexibility, reduced debt and preferred equity obligations, and increased long-term value per share.

Updated 2026 Outlook

To account for the property disposition, Pebblebrook has updated its prior second-quarter and full-year 2026 Outlook, previously provided on April 28, 2026. The Chamberlain has been removed from the Company’s Q2 through Q4 2026 Same-Property Hotel EBITDA and operating metrics, but its EBITDA from operations through the sale date will continue to be included in Adjusted EBITDAre.