Dallas-based NewcrestImage yesterday acquired The Hotel Zags, a lifestyle boutique hotel in downtown Portland, Ore., for $10 million from Pebblebook Hotel Trust. The hotel has 174 guestrooms and will be managed in-house by the NewcrestImage.
“This hotel continues to build our portfolio through both geographic and segment diversification,” said Mehul Patel, managing partner of NewcrestImage, said in a statement. “It also demonstrates our corporate commitment to acquisition as a core growth strategy.”
For the trailing twelve months ended August 31, 2026, the hotel’s estimated net operating loss was ($0.8) million, after an assumed annual capital reserve of 4.0 percent of total hotel revenues, and its estimated hotel earnings before interest, taxes, depreciation, and amortization was ($0.6) million, according to Pebblebrook.
Pebblebrook expects to use the sale proceeds for general corporate purposes, including opportunistically repurchasing the Company’s common or preferred shares and supporting other capital allocation priorities intended to enhance long-term shareholder value.
Located in Portland’s walkable Cultural District, The Hotel Zags was completely renovated and rebranded in 2019.