Pebblebrook Completes the $10.0 Million Sale of The Hotel Zags
Pebblebrook Hotel Trust completed the sale of The Hotel Zags for $10.0 million on 8 October 2026. The hotel holds 174 rooms in Portland, Oregon. The buyer is a third party the release does not name. The company's news release carries the date 9 October 2026.
The price works out at about $57,500 a room on the two figures the release publishes.
The Trailing-Twelve-Month Economics
The release puts the hotel's estimated net operating loss at $0.8 million for the twelve months ended 31 August 2026. That figure is stated after an assumed annual capital reserve of 4.0 per cent of total hotel revenues. The same period produced estimated hotel EBITDA of negative $0.6 million.
The release carries a reconciliation of the two measures. Hotel net loss for the twelve months reached $1.9 million. The table adds back $1.3 million of depreciation and amortization to reach hotel EBITDA of negative $0.6 million. It then applies a capital reserve of $0.2 million to reach the hotel net operating loss of $0.8 million. Pebblebrook states that the table is unaudited and reports it in millions.
The release describes hotel EBITDA and hotel net operating loss as non-GAAP measures. It states that the two measures are not prepared under US generally accepted accounting principles and that they are not an alternative to measures that are.
The Use of Proceeds
Pebblebrook expects to use the sale proceeds for general corporate purposes. The release names opportunistic repurchases of the company's common or preferred shares and other capital allocation priorities intended to enhance long-term shareholder value.
The release states that the transaction is not expected to affect the company's current third quarter 2026 outlook. Pebblebrook issued that outlook on 29 July 2026. The company will reflect the sale in its fourth quarter results and will update its full-year 2026 outlook when it reports third quarter 2026 results.
The Portfolio Behind the Sale
The release describes Pebblebrook as a publicly traded real estate investment trust and the largest owner of urban and resort lifestyle hotels in the United States. It puts the portfolio at 42 hotels, about 10,800 guest rooms and 14 urban and resort markets.
The Form 8-K that carries the release names Maryland as the state of the trust's organisation. The filing states the event date as 8 October 2026 and covers the release under Item 7.01 for Regulation FD disclosure. The filing is signed by Raymond D. Martz, whom it names as co-president, chief financial officer, treasurer and secretary. The release names him as its contact.
The Estimate and the Safe Harbour
The release flags the two operating estimates as forward-looking statements, along with the intended use of proceeds and the expectation about the 2026 outlook. Pebblebrook attributes those estimates to its own assumptions. It states that all information in the release is as of 9 October 2026 and that the company undertakes no duty to update the statements except where the law requires it.
The release is dated from 4747 Bethesda Avenue, Suite 1100, in Bethesda, Maryland. Pebblebrook directs readers to the investor relations section of its website for its annual report on Form 10-K and its quarterly reports on Form 10-Q.
The Terms the Release Leaves Open
The release names no buyer, no broker and no capitalization rate. It carries no figure for the hotel's revenue. A negative net operating loss and a negative EBITDA leave no yield to compute from the measures the release publishes, and the release states no reason for the sale beyond the use of proceeds.