Pebblebrook Closes The Hotel Zags Sale at $10.0 Million
Pebblebrook Hotel Trust completed the sale of The Hotel Zags on 8 October 2026. The buyer is a third party, and the 174-room Portland hotel went for $10.0 million. The price works out at about $57,500 a room. The release carries the price and the room count, and it states no per-room figure.
A Loss Across the Trailing Twelve Months
Pebblebrook estimates the hotel's net operating loss at $0.8 million for the twelve months ended 31 August 2026. Estimated hotel EBITDA across the same window is negative $0.6 million. Both figures sit after an assumed annual capital reserve of 4.0 per cent of total hotel revenues, and Pebblebrook labels both as non-GAAP measures. The window closes two months before the sale.
The Reconciliation Behind the Two Figures
The release's second page carries a table that starts at a hotel net loss of $1.9 million. Depreciation and amortisation of $1.3 million brings that figure to hotel EBITDA of negative $0.6 million. A $0.2 million capital reserve brings it to the $0.8 million net operating loss.
The table is unaudited and in millions. It sits in the SEC exhibit, and the trade republication of the release leaves it out.
Proceeds and the Outlook
Pebblebrook names general corporate purposes for the proceeds, including opportunistic repurchases of the company's common or preferred shares and other capital allocation priorities. The release describes no wider disposition programme and names no further sale.
The sale will not change the third quarter 2026 outlook issued on 29 July 2026. Pebblebrook will reflect the transaction in the fourth quarter and update the full-year outlook with its third quarter results.
What the Filing Leaves Out
The release names no buyer, no broker and no capitalisation rate. It publishes no hotel revenue figure and no operating detail beyond the two trailing-twelve-month estimates.
Pebblebrook furnished the release as Exhibit 99.1 to a Form 8-K filed on 9 October 2026 under Item 7.01 Regulation FD Disclosure. Raymond D. Martz, Co-President, Chief Financial Officer, Treasurer and Secretary, signed the filing.
The release describes Pebblebrook as the largest owner of urban and resort lifestyle hotels in the United States, with 42 hotels, approximately 10,800 guest rooms and 14 urban and resort markets. The company's portfolio page carries The Nines, a Luxury Collection Hotel, Portland, with 331 rooms and Sage Hospitality Group as operator.