Pebblebrook Hotel Trust Completes Sale of 909 North Michigan Avenue Retail Parcel Adjacent to The Westin Michigan Avenue Chicago

Rhea-AI Summary

Pebblebrook Hotel Trust (NYSE: PEB) has completed the sale of a fully occupied retail property at 909 North Michigan Avenue for $27.3 million. The 5,860 square-foot parcel, which has a cap rate of approximately 7.7%, is adjacent to the Company's Westin Michigan Avenue Chicago hotel. Proceeds from the sale will support general corporate purposes, potentially including debt reduction and share repurchases. Pebblebrook continues to be a major player in the U.S. hotel market, owning 50 hotels totaling around 12,600 guest rooms across 15 urban and resort markets.

Positive

• Completed sale of retail property for $27.3 million.
• Sale reflects a cap rate of approximately 7.7%.
• Proceeds may be used for debt reduction and share repurchases.

Negative

• None.

BETHESDA, Md.--(BUSINESS WIRE)-- Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that it closed on the sale of 909 North Michigan Avenue, a 5,860 square-foot 3-tenant fully occupied high-street retail parcel, adjacent to the Company’s Westin Michigan Avenue Chicago for $27.3 million to a third party.

Based on the retail parcel’s net operating income for the year ended December 31, 2022, the sales price reflected an approximately 7.7% cap rate. Proceeds from the sale will be used for general corporate purposes, which may include reducing the Company’s outstanding debt and repurchasing the Company’s common and preferred shares.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 50 hotels and resorts, totaling approximately 12,600 guest rooms across 15 urban and resort markets. For more information, visit www.pebblebrookhotels.com and follow us at @PebblebrookPEB.

This press release contains certain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “estimated” and “will” or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections and forecasts and other forward-looking information and estimates. The intended use of proceeds is a forward-looking statement. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, the operating performance of our hotels and the supply of hotel properties, and other factors as are described in greater detail in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

For further information about the Company’s business and financial results, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company’s website at www.pebblebrookhotels.com.

All information in this press release is as of March 20, 2023. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company’s expectations.

For additional information or to receive press releases via email, please visit our website at www.pebblebrookhotels.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20230320005166/en/

Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330

Source: Pebblebrook Hotel Trust

FAQ

What was the sale price of the property sold by Pebblebrook Hotel Trust?

Pebblebrook Hotel Trust sold the property for $27.3 million.

What is the cap rate for the retail parcel sold by Pebblebrook Hotel Trust?

The sale reflects a cap rate of approximately 7.7%.

How does Pebblebrook Hotel Trust plan to use the proceeds from the recent property sale?

The proceeds will be used for general corporate purposes, including reducing outstanding debt and repurchasing shares.

Where is the sold property located?

The property is located at 909 North Michigan Avenue, adjacent to the Westin Michigan Avenue Chicago.

How many hotels does Pebblebrook Hotel Trust own?

Pebblebrook Hotel Trust owns 50 hotels and resorts across the United States.