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Pebblebrook Sells Chicago Westin for $72M
5 Dec
Summary
- Pebblebrook Hotel Trust sold Westin Michigan Avenue Chicago for $72 million.
- The hotel sale is expected to reduce Pebblebrook's debt and preferred equity.
- This divestment impacts Pebblebrook's fourth-quarter and full-year 2025 forecasts.
Pebblebrook Hotel Trust has finalized the sale of its 752-room property, The Westin Michigan Avenue Chicago, for $72 million. This significant transaction contributes to the company's broader strategy of deleveraging its balance sheet.
The sale, alongside a previous disposition, has already reduced Pebblebrook's debt by $100 million and preferred securities by approximately $5 million. Following these moves, the company anticipates its consolidated debt and convertible notes will stand around $2.1 billion, with preferred equity at about $761 million.
As a result of these property sales, Pebblebrook has revised its financial forecasts for the fourth quarter and full year of 2025. While operational figures for the sold hotels are being adjusted, the company expects minimal impact on its overall adjusted funds from operations due to anticipated interest expense reductions.
