Pebblebrook Hotel Trust (NYSE: PEB) closes $72M sale of Westin Michigan Avenue Chicago

Rhea-AI Filing Summary

Pebblebrook Hotel Trust reported that it has completed the sale of the 752-room Westin Michigan Avenue Chicago for $72.0 million to a third party. The hotel is located on Michigan Avenue in Chicago, Illinois, and the transaction closed on December 3, 2025.

The company plans to use the sale proceeds for general corporate purposes, with a main emphasis on reducing outstanding debt and preferred equity, and selectively repurchasing its common shares. Pebblebrook also referenced an updated fourth-quarter and full-year 2025 outlook included in a related press release, highlighting that this asset sale fits into its broader capital allocation and balance sheet strategy.

Insights

Real estate and REIT analyst

Pebblebrook monetizes a major Chicago hotel to fund de‑leveraging and buybacks.

Pebblebrook Hotel Trust completed the sale of the 752-room Westin Michigan Avenue Chicago for $72.0 million. Disposing of a large urban asset for cash gives the REIT additional flexibility in managing its portfolio and balance sheet, especially in a sector that is sensitive to local demand and financing conditions.

The company states that proceeds will be used for general corporate purposes, primarily to reduce outstanding debt and preferred equity and to opportunistically repurchase common shares. This mix suggests a focus on strengthening the capital structure while also returning capital to shareholders when management views repurchases as attractive.

The press release tied to this transaction also includes an updated fourth-quarter and full-year 2025 outlook, indicating that management is integrating the sale into its operating and financial expectations for the year. The overall effect on earnings and leverage will depend on the income previously generated by the Westin Michigan Avenue Chicago relative to the interest and preferred equity costs that are reduced with the sale proceeds.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): December 3, 2025

PEBBLEBROOK HOTEL TRUST

(Exact name of registrant as specified in its charter)

Maryland

001-34571

27-1055421

(State or other jurisdiction

(Commission

(I.R.S. Employer

of incorporation)

File Number)

Identification No.)

4747 Bethesda Avenue, Suite 1100, Bethesda, Maryland									20814
(Address of principal executive offices)									(Zip Code)

Registrant’s telephone number, including area code: (240) 507-1300

Not Applicable

Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, $0.01 par value per share

PEB

New York Stock Exchange

Series E Cumulative Redeemable Preferred Shares, $0.01 par value

PEB-PE

New York Stock Exchange

Series F Cumulative Redeemable Preferred Shares, $0.01 par value

PEB-PF

New York Stock Exchange

Series G Cumulative Redeemable Preferred Shares, $0.01 par value

PEB-PG

New York Stock Exchange

Series H Cumulative Redeemable Preferred Shares, $0.01 par value

PEB-PH

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01. Regulation FD Disclosure.

Pebblebrook Hotel Trust (the "Company") issued a press release on December 4, 2025, announcing that on December 3, 2025, it closed on the sale of the 752-room Westin Michigan Avenue Chicago, located in Chicago, IL, for $72.0 million to a third party. The press release also includes an updated fourth-quarter and full-year 2025 Outlook.

A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is hereby incorporated by reference herein.

Item 8.01. Other Events.

On December 3, 2025, the Company closed on the sale of the 752-room Westin Michigan Avenue Chicago, located in Chicago, IL, for $72.0 million to a third party. Proceeds from the sale will be used for general corporate purposes, with a primary focus on reducing outstanding debt and preferred equity, and opportunistically repurchasing the Company’s common shares, while supporting other capital allocation priorities to enhance long-term shareholder value.

Forward-Looking Statements

This Current Report on Form 8-K 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, 2024. 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.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.						Description
99.1						Press release, issued December 4, 2025, announcing the sale of Westin Michigan Avenue Chicago, in Chicago, IL.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			PEBBLEBROOK HOTEL TRUST
December 4, 2025			By:			/s/ Raymond D. Martz
						Name:			Raymond D. Martz
						Title:			Co-President, Chief Financial Officer, Treasurer and Secretary

FAQ

What transaction did Pebblebrook Hotel Trust (PEB) announce in this 8-K?

Pebblebrook Hotel Trust announced that it closed on the sale of the 752-room Westin Michigan Avenue Chicago, located in Chicago, Illinois, to a third party.

How much did Pebblebrook Hotel Trust (PEB) receive for the sale of the Westin Michigan Avenue Chicago?

The company sold the Westin Michigan Avenue Chicago for $72.0 million to a third party.

When did Pebblebrook Hotel Trust (PEB) close the sale of the Westin Michigan Avenue Chicago?

The sale of the Westin Michigan Avenue Chicago closed on December 3, 2025.

How does Pebblebrook Hotel Trust (PEB) plan to use the $72.0 million of sale proceeds?

Pebblebrook plans to use the proceeds for general corporate purposes, with a primary focus on reducing outstanding debt and preferred equity and opportunistically repurchasing common shares, while supporting other capital allocation priorities.

Did Pebblebrook Hotel Trust (PEB) update its financial outlook in connection with this hotel sale?

Yes. The company issued a press release that includes an updated fourth-quarter and full-year 2025 outlook in connection with the sale.

What risks does Pebblebrook Hotel Trust (PEB) highlight regarding its forward-looking statements?

The company notes that forward-looking statements, including the intended use of proceeds, are subject to risks such as the state of the U.S. economy, the operating performance of its hotels, the supply of hotel properties, and other factors described in its SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2024.