Pebblebrook Hotel Trust Completes $30.0 Million Sale of Marina City Retail Space and Parking Facilities in Downtown Chicago
December 22 2023 - 7:00AM
Business Wire
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) announced
today that on December 21, 2023, it successfully completed the sale
of the Marina City retail space and two parking facilities adjacent
to its Hotel Chicago Downtown, Autograph Collection, for $30.0
million to a third party.
The sales transaction includes approximately 146,000 square feet
of retail space and two parking facilities offering 900 spaces. The
transaction reflects an approximate 6.4% capitalization rate based
on the estimated net operating income for the year ending December
31, 2023.
Highlighting a year of robust activity in property dispositions,
Pebblebrook has successfully executed seven property sales totaling
$330.8 million in 2023. These sales cumulatively represent an
approximate 20.6x EBITDA multiple and a 4.1% net operating income
capitalization rate. This rate is calculated assuming a 4.0%
capital reserve against total property revenues based on the
trailing twelve-month performance preceding each sale.
Proceeds from the sale will be used for general corporate
purposes, which may include reducing the Company’s outstanding debt
and repurchasing the Company’s 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 in the United States. The Company owns 46
hotels, totaling approximately 12,000 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 December 22,
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 www.pebblebrookhotels.com.
Pebblebrook Hotel Trust Marina City Retail Space
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net
Operating Income Estimated December 2023 Trailing Twelve
Months (Unaudited, in millions)
Estimated Twelve
Months
Ending December 31,
2023
Hotel net income (loss)
$1.4
Adjustment: Depreciation and amortization
0.8
Hotel EBITDA
$2.2
Adjustment: Capital reserve
(0.3)
Hotel Net Operating Income
$1.9
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, estimated trailing
twelve-month hotel net operating income after capital reserves, and
an estimated adjustment for the impact of a one-time real estate
tax true up credit 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, estimated trailing
twelve-month net operating income after capital reserves and an
estimated adjustment for the impact of a one-time real estate tax
true up credit 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
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
$275
$272
$250
$263
RevPAR
$186
$236
$234
$192
$212
Hotel Revenues
$294.3
$375.5
$372.5
$318.8
$1,361.0
Hotel EBITDA
$74.2
$132.7
$126.5
$84.9
$418.3
Hotel EBITDA Margin
25.2%
35.3%
34.0%
26.6%
30.7%
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
2022
2022
2022
2022
2022
Occupancy
49%
69%
73%
61%
63%
ADR
$301
$324
$326
$297
$314
RevPAR
$146
$224
$238
$180
$197
Hotel Revenues
$229.3
$361.8
$382.8
$304.5
$1,278.4
Hotel EBITDA
$46.7
$124.5
$121.9
$63.1
$356.3
Hotel EBITDA Margin
20.4%
34.4%
31.8%
20.7%
27.9%
First Quarter
Second Quarter
Third Quarter
2023
2023
2023
Occupancy
59%
73%
75%
ADR
$303
$312
$312
RevPAR
$177
$229
$235
Hotel Revenues
$290.2
$372.1
$383.0
Hotel EBITDA
$59.1
$110.5
$111.9
Hotel EBITDA Margin
20.4%
29.7%
29.2%
These historical hotel operating results include information
for all of the hotels the Company owned as of December 21, 2023,
(excluding LaPlaya Beach Club & Resort), following the sale of
Marina City Retail Space. 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/20231221395978/en/
Raymond D. Martz, Co-President and Chief
Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330
Pebblebrook Hotel (NYSE:PEB)
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