Pebblebrook Hotel Trust Completes Sale of Hotel Vintage Seattle
May 25 2023 - 4:15PM
Business Wire
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) announced
that on May 24, 2023, it closed on the sale of the 125-room Hotel
Vintage Seattle in Seattle, WA for $33.7 million to a third
party.
For the trailing twelve months ended March 31, 2023, the hotel’s
net operating income was $0.8 million, and its Hotel EBITDA was
$1.1 million, with the $33.7 million sales price reflecting a 31.0x
EBITDA multiple and a 2.3% net operating income capitalization
rate. Based on the hotel’s operating performance for 2019, the
$33.7 million sales price reflects an 11.2x EBITDA multiple and a
7.3% net operating income capitalization rate. The net operating
income for both periods mentioned above is after an assumed annual
capital reserve of 4.0% of total hotel revenues.
Proceeds from the sale of Hotel Vintage Seattle will be used for
general corporate purposes, which may include reducing the
Company’s outstanding debt and repurchasing common and preferred
shares.
About Pebblebrook Hotel
Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real
estate investment trust (“REIT”) and the largest owner of urban and
resort lifestyle hotels and resorts in the United States. The
Company owns 47 hotels and resorts, totaling approximately 12,200
guest rooms across 13 urban and resort markets. For more
information, visit www.pebblebrookhotels.com and follow us at
@PebblebrookPEB.
This press release 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, 2022.
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.
For further information about the Company’s business and
financial results, please refer to the “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and
“Risk Factors” sections of the Company’s SEC filings, including,
but not limited to, its Annual Report on Form 10-K and Quarterly
Reports on Form 10-Q, copies of which may be obtained at the
Investor Relations section of the Company’s website at www.pebblebrookhotels.com.
All information in this press release is as of May 24, 2023. The
Company undertakes no duty to update the statements in this press
release to conform the statements to actual results or changes in
the Company’s expectations.
For additional information or to receive press
releases via email, please visit our website at www.pebblebrookhotels.com
Pebblebrook Hotel Trust Hotel Vintage Seattle
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net
Operating Income March 2023 Trailing Twelve Months
(Unaudited, in millions) Twelve Months Ended March
31,
2023
Hotel net income
($0.0
)
Adjustment: Depreciation and amortization
1.1
Hotel EBITDA
$1.1
Adjustment: Capital reserve
(0.3
)
Hotel Net Operating Income
$0.8
This press release includes certain non-GAAP
financial measures as defined under Securities and Exchange
Commission (SEC) rules. These measures are not in accordance with,
or an alternative to, measures prepared in accordance with U.S.
generally accepted accounting principles, or GAAP, and may be
different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. Non-GAAP
measures have limitations in that they do not reflect all of the
amounts associated with the hotel’s results of operations
determined in accordance with GAAP.The Company has presented
estimated trailing twelve-month hotel EBITDA and estimated trailing
twelve-month hotel net operating income after capital reserves
because it believes these measures provide investors and analysts
with an understanding of the hotel-level operating performance.
These non-GAAP measures do not represent amounts available for
management’s discretionary use, because of needed capital
replacement or expansion, debt service obligations or other
commitments and uncertainties, nor are they indicative of funds
available to fund the Company’s cash needs, including its ability
to make distributions.The Company’s presentation of the hotel’s
estimated trailing twelve-month EBITDA and estimated trailing
twelve-month net operating income after capital reserves should not
be considered as an alternative to net income (computed in
accordance with GAAP) as an indicator of the hotel’s financial
performance. The table above is a reconciliation of the hotel’s
estimated trailing twelve-month EBITDA and net operating income
after capital reserves calculations to net income in accordance
with GAAP. Any differences are a result of rounding.
Pebblebrook Hotel Trust Hotel Vintage Seattle
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net
Operating Income December 2019 Trailing Twelve Months
(Unaudited, in millions) Twelve months
endedDecember 31,
2019
Hotel net income
$1.6
Adjustment: Depreciation and amortization
1.4
Hotel EBITDA
$3.0
Adjustment: Capital reserve
(0.5
)
Hotel Net Operating Income
$2.5
This press release includes certain non-GAAP financial measures as
defined under Securities and Exchange Commission (SEC) rules. These
measures are not in accordance with, or an alternative to, measures
prepared in accordance with U.S. generally accepted accounting
principles, or GAAP, and may be different from non-GAAP measures
used by other companies. In addition, these non-GAAP measures are
not based on any comprehensive set of accounting rules or
principles. Non-GAAP measures have limitations in that they do not
reflect all of the amounts associated with the hotel’s results of
operations determined in accordance with GAAP.The Company has
presented trailing twelve-month hotel EBITDA and trailing
twelve-month hotel net operating income after capital reserves
because it believes these measures provide investors and analysts
with an understanding of the hotel-level operating performance.
These non-GAAP measures do not represent amounts available for
management’s discretionary use, because of needed capital
replacement or expansion, debt service obligations or other
commitments and uncertainties, nor are they indicative of funds
available to fund the Company’s cash needs, including its ability
to make distributions.The Company’s presentation of the hotel’s
trailing twelve-month EBITDA and trailing twelve-month net
operating income after capital reserves should not be considered as
an alternative to net income (computed in accordance with GAAP) as
an indicator of the hotel’s financial performance. The table above
is a reconciliation of the hotel’s trailing twelve-month EBITDA and
net operating income after capital reserves calculations to net
income in accordance with GAAP. Any differences are a result of
rounding.
Pebblebrook Hotel Trust Historical
Operating Data ($ in millions, except ADR and RevPAR)
(Unaudited) Historical Operating Data:
First Quarter Second Quarter Third Quarter
Fourth Quarter Full Year
2019
2019
2019
2019
2019
Occupancy
74%
86%
86%
77%
81%
ADR
$251
$274
$272
$250
$262
RevPAR
$186
$236
$234
$192
$212
Hotel Revenues
$301.4
$383.2
$381.0
$325.9
$1,391.5
Hotel EBITDA
$77.2
$136.1
$130.6
$87.7
$431.6
Hotel EBITDA Margin
25.6%
35.5%
34.3%
26.9%
31.0%
First Quarter Second Quarter Third
Quarter Fourth Quarter Full Year
2022
2022
2022
2022
2022
Occupancy
48%
69%
73%
60%
63%
ADR
$300
$323
$325
$295
$312
RevPAR
$144
$222
$237
$178
$196
Hotel Revenues
$232.1
$366.9
$388.6
$308.7
$1,296.3
Hotel EBITDA
$46.6
$126.0
$123.5
$63.8
$360.0
Hotel EBITDA Margin
20.1%
34.4%
31.8%
20.7%
27.8%
First Quarter
2023
Occupancy
58%
ADR
$301
RevPAR
$176
Hotel Revenues
$294.6
Hotel EBITDA
$60.9
Hotel EBITDA Margin
20.7%
These historical hotel operating results include
information for all of the hotels the Company owned as of May 24,
2023, (excluding LaPlaya Beach Club & Resort), following the
sale of Hotel Vintage Seattle. These historical operating results
include periods prior to the Company's ownership of the hotels. The
information above does not reflect the Company's corporate general
and administrative expense, interest expense, property acquisition
costs, depreciation and amortization, taxes and other expenses. Any
differences are a result of rounding.The information above has not
been audited and has been presented only for comparison purposes.
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version on businesswire.com: https://www.businesswire.com/news/home/20230525005761/en/
Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel
Trust - (240) 507-1330
Pebblebrook Hotel (NYSE:PEB)
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