Pebblebrook Hotel Trust sells Hotel Zags for $10M

By Bobby Samwell • Saturday, October 10 01:45 • Permanent Link

Pebblebrook Hotel Trust completed the sale of the Hotel Zags in Portland, Oregon, for $10.0 million on October 8, 2026.

The 174-room hotel had been a drag on results: for the trailing 12 months ended August 31, 2026, Pebblebrook said the property generated an estimated net operating loss of $0.8 million and estimated hotel EBITDA of negative $0.6 million. Those figures were calculated after an assumed annual capital reserve equal to 4.0% of total hotel revenue.

The company said it plans to use the sale proceeds for general corporate purposes, including opportunistic repurchases of common or preferred shares and other capital allocation priorities.

Pebblebrook said the transaction will not change its current third-quarter 2026 outlook. The sale will be reflected in fourth-quarter results and in the company’s updated full-year 2026 outlook when it reports third-quarter earnings. The market has reacted to these announcements by moving the company's shares 1.44% to a price of $18.98. For more information, read the company's full 8-K submission here.

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