Montrose at Beverly Hills, a 120‑room urban lifestyle hotel in Los Angeles, was sold by Pebblebrook Hotel Trust for $44.25 million, with the transaction closing on November 19, 2025. The sale was announced on November 20, 2025, marking the latest move in the trust’s ongoing portfolio rebalancing program.
Pebblebrook has been shifting its focus from urban properties to higher‑yielding leisure and resort assets. The Montrose, which had historically contributed modest revenue and operating income, no longer aligns with the company’s strategic emphasis on upscale, high‑occupancy markets. By divesting the hotel, Pebblebrook can redeploy capital toward properties that generate stronger cash flows and support its long‑term growth objectives.
The sale price represents an EBITDA multiple of 16.1× and a net operating income capitalization rate of 5.2 %, reflecting the market’s valuation of the property’s performance. Proceeds will be used for general corporate purposes, including debt reduction and share repurchases, which will strengthen the trust’s balance sheet. Pebblebrook’s Q3 2025 results—net loss of $32.4 million, Adjusted EBITDA of $99.2 million, and Adjusted FFO per diluted share of $0.51—indicate that the transaction will not materially alter the company’s fourth‑quarter or full‑year 2025 outlook.
Jon Bortz, Chairman and CEO, said the sale “is part of Pebblebrook’s disciplined approach to monetizing non‑core assets and using the proceeds to reinforce our financial position.” He added that the trust remains focused on acquiring and operating high‑return properties that fit its portfolio strategy.
Pebblebrook currently owns 45 hotels with roughly 12,000 rooms across 13 markets. In addition to the Montrose sale, the trust has another hotel under contract for $72 million, expected to close in the fourth quarter of 2025. While no immediate market reaction data is available, analysts view the divestiture as a continuation of Pebblebrook’s portfolio rebalancing and a step toward improving liquidity and reducing leverage.
The Montrose sale underscores Pebblebrook’s commitment to portfolio optimization and financial flexibility. By shedding a lower‑yielding urban asset, the trust positions itself to invest in higher‑performing properties and maintain a stronger balance sheet for future opportunities.
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