Pebblebrook Hotel Trust has closed on the disposition of the Chamberlain West Hollywood Hotel, a 115-key hospitality asset, to an undisclosed third-party buyer for a total consideration of $43.5 million. The transaction involved both cash and Pebblebrook preferred shares, with the purchaser contributing a portion of the consideration in the form of those securities. This structure allows the real estate investment trust to retire the preferred shares at a value below their liquidation preference, creating an incremental financial benefit alongside the sale proceeds.
For the trailing 12-month period ended April 30, the Chamberlain West Hollywood Hotel produced EBITDA of $3.0 million and NOI of $2.6 million, based on an assumed capital reserve equal to 4.0% of total hotel revenues. On that performance, the $43.5 million gross sale price translates into a 14.5x EBITDA multiple for the buyer and a 5.9% NOI capitalization rate. These metrics provide a clear read-through on private-market pricing for a boutique, key-count-constrained hotel asset in West Hollywood, with the cap rate and earnings multiple directly tied to the most recent 12-month operating results.
Beyond this individual transaction, Pebblebrook has been executing a broader portfolio optimization and capital recycling strategy. Including the Chamberlain West Hollywood sale and two strategic property dispositions completed in the fourth quarter of 2025, the company has now closed approximately $160 million of asset sales at what it characterizes as attractive private-market values. Across that combined disposition set, Pebblebrook reports an aggregate 15.4x EBITDA multiple and a 4.6% NOI capitalization rate, based on the associated trailing 12-month financial performance for the sold properties.
Since 2021, the Bethesda-based lodging REIT has completed $1 billion of property sales, underscoring an ongoing effort to refine its portfolio and balance sheet composition through selective dispositions. The latest West Hollywood transaction continues that pattern by pairing a full-property sale with the opportunity to reduce the company’s preferred equity obligations at a discount through the use of preferred share consideration in the capital stack. While the identity of the buyer and additional transaction terms were not disclosed, the combination of sale price, operating metrics and valuation multiples provides additional datapoints for investors and market participants tracking pricing dynamics in the hotel sector and, more specifically, within the West Hollywood lodging market.
