**Pebblebrook Sells Montrose at Beverly Hills Hotel for $44.25 Million**
Pebblebrook Hotel Trust has completed the sale of the 133-key Montrose at Beverly Hills, located in West Hollywood, for $44.25 million. The buyer was an undisclosed third party.
Based on the hotel’s financial performance over the 12 months ending September 30, the sale price represents an EBITDA multiple of 16.1x and a net operating income (NOI) capitalization rate of 5.2%, assuming a 4% capital reserve.
The Bethesda, Maryland-based real estate investment trust (REIT) plans to use the proceeds from the transaction for general corporate purposes. These include reducing outstanding debt, repurchasing common or preferred shares, and other capital allocation initiatives aimed at enhancing long-term shareholder value. The company noted that the transaction is not expected to impact its previously announced outlook for the fourth quarter or the full year of 2025.
In addition to the Montrose sale, Pebblebrook currently has another hotel under contract for sale at a price of $72 million. That deal is anticipated to close in the fourth quarter.
