Pebblebrook closes sale of Westin in Chicago

BETHESDA, Maryland – Pebblebrook Hotel Trust has closed on the sale of the 752-room Westin Michigan Avenue Chicago for $72.0 million (less than $96,000 per room) to local investor Ketu Amin.

Pebblebrook acquired the well-located hotel with two aging towers in 2018 for $156 million after LaSalle Hotel Properties bought it in 2006 for nearly $215 million.

Amin earlier this year acquired the dual-branded Hampton Inn/Homewood Suites Mag Mile for a discounted $28.3 million. His portfolio is managed through Vinayaka Hospitality, run by his wife, Komal Patel.

Following the sale of The Westin Michigan Avenue Chicago and the previously announced $44.25 million sale of Montrose at Beverly Hills, Pebblebrook will have reduced its outstanding debt by $100 million and its preferred securities outstanding by approximately $5 million. Following these transactions, Pebblebrook expects to have approximately $2.1 billion of consolidated debt and convertible notes outstanding and $761 million of preferred equity, with net debt to trailing 12-month corporate EBITDA reduced to approximately 5.9x.

Because the loss of hotel-level EBITDA for the remainder of the year is expected to be fully offset by lower interest expense from reduced outstanding debt, Pebblebrook does not anticipate any meaningful impact to Adjusted Funds from Operations, and its outlook for key fourth-quarter and full-year 2025 earnings metrics remains largely unchanged.

For the trailing 12 months ended September 30, 2025, the Westin Michigan Avenue Chicago generated EBITDA of $4.6 million and net operating income of $2.5 million. The $72.0 million sales price equates to a 15.6x EBITDA multiple and a 3.5% NOI capitalization rate, before consideration of a brand-mandated property improvement plan and other significant capital expenditures.

Pebblebrook expects to use the sale proceeds 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.