UPDATE 2-Pebblebrook IPO pricing matches expectations

* Shares priced at $20 in IPO, matching expectations

* Pebblebrook sold 17.5 mln shares, raised $350 mln

* Pebblebrook to debut on NYSE on Wednesday under "PEB"

(Adds analyst comment, background)

By Clare Baldwin

NEW YORK, Dec 8 (Reuters) - Pebblebrook Hotel Trust (PEB.N) matched pricing expectations for its initial public offering on Tuesday, but, in a weak hotel market, investors may balk at signing onto a company with no operating history.

Shares in the Maryland-based real estate investment trust (REIT) sold for $20 each, matching Pebblebrook's expectations, raising about $350 million.

Earlier on Tuesday another REIT, Chesapeake Lodging Trust, postponed indefinitely its initial public offering, an underwriter said, citing "market conditions." Chesapeake was hoping to raise roughly $250 million.

Companies are aiming to take advantage of low property prices and a steadying stock market, but investors may still be wary. High-end hotels have been hurt by a sharp fall-off in business travel and have had to cut rates to attract guests, leaving owners with less cash to pay off debt.

The Dow Jones U.S. Hotels index .DJUSLG has shot up about 64 percent this year on signs of an economic recovery, but its pace of growth has slowed and the outlook from industry bellwethers Marriott International Inc (MAR.N) and Starwood Hotels & Resorts Worldwide Inc (HOT.N) is weak.

"I have a strong feeling that any investor in Pebblebrook will be looking at at- or around- the offering price for a good while," said IPO Boutique senior managing partner Scott Sweet.

"It's a rather ominous way to start. It's almost like a blank check. You're going out and buying up hotels that you think can be made into money making ventures but you also have an economy that you can't control."

Pebblebrook, which was formed in October 2009, does not currently own any properties but is angling to acquire hotels in major U.S. cities and "major coastal markets," according to a prospectus filed with the U.S. Securities and Exchange Commission.

The company does not have an operating history, but instead is leaning on the experience of management. Chief Executive Officer Jon Bortz founded LaSalle Hotel Properties (LHO.N), which is now the third largest REIT by market capitalization on the Dow hotels index, and served as its chairman and CEO.

Executive Vice President and Chief Financial Officer Raymond Martz has previous experience as a CFO and served in two senior finance positions with two New York Stock Exchange-listed hotel REITs.

After the offering and concurrent private placement, the company will have roughly $330 million and no debt, according to its prospectus.

America's Growth Capital Chief Executive Ben Howe said such a strategy could be viable.

"They are going to be buying the properties for much less than the current owners are in for so they may be able to utilize the hotels at much lower occupancy rates and still make a profit, and as the economy improves, do pretty well," he said. "It's a reasonably sound proposition considering the desperate state of the owners of the hotels and the lenders to these hotels."

Pebblebrook shares are set to begin trade on the New York Stock Exchange on Wednesday under the symbol "PEB."

The IPO's underwriters, led by Bank of America Merrill Lynch (BAC.N), Raymond James (RJF.N), and Wells Fargo Securities (WFC.N), have the option to buy an additional 2.625 million shares.

(Reporting by Clare Baldwin, additional reporting by Deepa Seetharaman; Editing by Gunna Dickson, Phil Berlowitz)