Pebblebrook Hotel Trust Sells Westin Michigan Avenue Chicago for $72 Million

Pebblebrook Hotel Trust has finalized the sale of the 752-room Westin Michigan Avenue, Chicago, for $72 million.

Pebblebrook Hotel Trust announced the completion of the sale of the Westin Michigan Avenue, Chicago, for $72 million to an undisclosed third party. The transaction was finalized on December 3, 2025.

The Westin Michigan Avenue Chicago, located in Chicago, Illinois, comprises 752 rooms. For the twelve months ending September 30, 2025, the hotel reported earnings before interest, taxes, depreciation, and amortization (EBITDA) of $4.6 million and net operating income (NOI) of $2.5 million. The sale price represents a 15.6x EBITDA multiple and a 3.5% NOI capitalization rate. These figures do not account for a brand-mandated property improvement plan and other capital expenditures.

Pebblebrook Hotel Trust plans to allocate the sale proceeds towards general corporate purposes, with a focus on reducing outstanding debt and preferred equity. Additionally, the company aims to repurchase common shares and support other capital allocation priorities to enhance shareholder value over the long term.

Following this transaction and the earlier $44.25 million sale of Montrose at Beverly Hills, Pebblebrook has reduced its outstanding debt by $100 million and its preferred securities by approximately $5 million. The company now has roughly $2.1 billion in consolidated debt and convertible notes outstanding, along with $761 million in preferred equity. These transactions have reduced Pebblebrook’s net debt to a trailing 12-month corporate EBITDA ratio of approximately 5.9x.