Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today
announced that on June 23, 2022, it acquired the AAA Four Diamond
257-room Gurney’s Newport Resort & Marina (“Gurney’s Newport”)
in Newport, Rhode Island for $174.0 million.
Gurney’s Newport is an irreplaceable ten-acre waterside resort
located on highly visible Goat Island in world-famous Newport,
Rhode Island. The independent resort boasts 360-degree unobstructed
water views of Narragansett Bay as well as Newport Harbor, and the
iconic Newport Bridge, creating the quintessential coastal New
England experience. Gurney’s Newport features 257 guestrooms,
including 18 spacious suites, and 80,000 square feet of flexible
indoor and outdoor event space, surrounded by expansive lawns,
sweeping water views, a marina, and a historic lighthouse. The
resort contains a wide variety of waterside eateries, including
Showfish Newport and The Pineapple Club, which feature
ingredient-driven menus with healthy bites, locally sourced dishes,
and seasonal classics. The resort also contains a 22-slip
full-service marina with direct access to Gurney’s Newport.
Additional resort amenities include a 3,000-square foot spa with
nine treatment rooms, outdoor fireplaces throughout, a lobby bar, a
grab-and-go coffee shop, a 3,200-square foot waterside pavilion
with fantastic views, a resort-style saltwater outdoor pool with
poolside cabanas, an indoor pool, a fitness center, and a seasonal
ice-skating rink.
“We are very excited to acquire this extremely unique premier
resort within the vibrant, high barrier to entry Newport market,”
said Jon E. Bortz, Chairman, President, and Chief Executive Officer
of Pebblebrook Hotel Trust (“Pebblebrook”). “Gurney’s Newport is
the only resort-style property in Newport, and it is one of the
very few true waterside resorts on the Northeastern Seaboard,
drawing strong demand from New York, Boston and Providence. This
unique New England retreat features an expansive footprint
overlooking Newport Harbor and Narragansett Bay, where guests can
enjoy upscale dining, spa treatments, sailing tours, outdoor event
spaces, a private marina, cabana experiences, and numerous other
resort-style amenities. With group and individual travelers
increasingly seeking a unique resort experience with open-air
amenities, Gurney’s Newport is well-positioned to continue to grow
in the highly attractive Newport market.”
Known as “America’s First Resort” and the “Sailing Capital of
the World,” Newport is considered the crown jewel of coastal New
England and is built on a long history of strong travel and
tourism. Newport is one of America’s most vibrant tourist
destinations, with a unique combination of qualities that attracts
millions from all over the world each year and is just a 1.5-hour
drive from Boston and a 3.5-hour drive from New York City. This
renowned leisure destination has authentic historical sites, the
famed Cliff Walk, the Newport Mansions, Ocean Drive, quaint
shopping and waterside dining, the International Tennis Hall of
Fame, yachting, sailing, fishing, golfing, beaches, and
internationally acclaimed events such as the Newport Folk Festival,
and many spectacular wedding venues. Newport remains one of the
highest barrier-to-entry markets in the country, with extremely
limited potential for new supply. Gurney’s exceptional location
surrounded by water in the heart of Newport Harbor offers guests an
elevated experiential stay in a highly desirable destination.
The Company is evaluating numerous operating and physical
enhancements to the guest experience to drive increased cash flow.
Pebblebrook believes the overall opportunity is to reposition the
property to a higher level, given its unique location and
amenities. Potential improvements include fully renovating the
guestrooms and guest bathrooms, upgrading the lobby, arrival
experience, and landscaping, refurbishing the restaurants and bars,
adding a market, relocating/upgrading the spa, reimagining the
Grand Ballroom, South Lawn, and outdoor pavilion spaces, and adding
new guest activities and amenities. In addition, the Company has
the right to purchase the marina (which includes 22 slips
accommodating boats up to 240 feet) in 2027. The resort will also
become part of Curator Hotel & Resort Collection, which is
expected to generate a wide array of expense reductions combined
with enhanced technology and operating initiatives.
Based on the estimated May 2022 trailing-twelve-month
performance, the hotel generated total revenue per available room
(“TRevPAR”) of $401, hotel earnings before interest, taxes,
depreciation, and amortization (“hotel EBITDA”) of $13.6 million,
and hotel net operating income (“hotel NOI”), after a 4% capital
reserve, of $12.1 million.
The acquisition of Gurney’s Newport brings the total number of
properties in the Company’s portfolio to 55, including 13 unique
drive-to, independent lifestyle resorts. Pebblebrook funded the
acquisition with cash on hand and proceeds from its senior
unsecured revolving credit facility.
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 55 hotels and resorts, totaling approximately 13,600
guest rooms across 16 urban and resort markets. For more
information, visit www.pebblebrookhotels.com and follow us at
@PebblebrookPEB.
About Curator Hotel & Resort
Collection
Curator Hotel & Resort Collection is a distinct collection
of hand-selected small brands and independent lifestyle hotels and
resorts worldwide, founded by Pebblebrook Hotel Trust and a group
of industry-leading hotel operators. Curator provides lifestyle
hotels the power to compete together while allowing its members the
freedom to retain what makes their hotels unique. It offers
independent lifestyle hotels the benefits of associating with other
unique lifestyle hotels and brands while participating in
best-in-class operating agreements, services, and technology. In
addition to Pebblebrook, the founding members of Curator include
Davidson Hospitality Group, Noble House Hotels & Resorts,
Provenance, Sage Hospitality Group, Springboard Hospitality, and
Viceroy Hotels & Resorts. For more information, visit
www.curatorhotelsandresorts.com.
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 “may,” “will,” “should,” “potential,” “intend,” “expect,”
“seek,” “anticipate,” “estimate,” “approximately,” “believe,”
“could,” “project,” “predict,” “forecast,” “continue,” “assume,”
“plan,” references to “outlook” 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. Examples of
forward-looking statements include the following: projections of
hotel operating performance; descriptions of the Company’s plans or
objectives for future operations, acquisitions or services; and
descriptions of assumptions underlying or relating to any of the
foregoing expectations including assumptions regarding the timing
of their occurrence. 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 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, 2021.
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 June 24, 2022.
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 Gurney’s Newport Resort
& Marina Reconciliation of Hotel Net Income to Hotel
EBITDA and Hotel Net Operating Income Estimated May 2022
Trailing Twelve Months (Unaudited, in millions)
Estimated Trailing Twelve
Months
Ended May 31, 2022
Hotel net income
$8.7
Adjustment: Depreciation and amortization(1)
4.9
Hotel EBITDA
$13.6
Adjustment: Capital reserve
(1.5
)
Hotel Net Operating Income
$12.1
(1) Depreciation and amortization have been estimated based on a
preliminary purchase price allocation. A change, if any, in the
allocation will affect the amount of depreciation and amortization
and the resulting change may be material. This press release
includes certain non-GAAP financial measures as defined under
Securities and Exchange Commission (SEC) Rules. These measures are
not in accordance with, or an alternative to, measures prepared in
accordance with U.S. generally accepted accounting principles, or
GAAP, and may be different from non-GAAP measures used by other
companies. In addition, these non-GAAP measures are not based on
any comprehensive set of accounting rules or principles. Non-GAAP
measures have limitations in that they do not reflect all of the
amounts associated with the hotel’s results of operations
determined in accordance with GAAP.The Company has presented
estimated hotel EBITDA and estimated hotel net operating income
after capital reserves, because it believes these measures provide
investors and analysts with an understanding of the hotel-level
operating performance. These non-GAAP measures do not represent
amounts available for management’s discretionary use, because of
needed capital replacement or expansion, debt service obligations
or other commitments and uncertainties, nor are they indicative of
funds available to fund the Company’s cash needs, including its
ability to make distributions.The Company’s presentation of the
hotel’s estimated EBITDA and estimated net operating income after
capital reserves should not be considered as an alternative to
hotel net income (computed in accordance with GAAP) as an indicator
of the hotel’s financial performance. The table above is a
reconciliation of the hotel’s estimated EBITDA and net operating
income after capital reserves calculations to hotel net income in
accordance with GAAP.
Pebblebrook Hotel Trust
Historical Operating Data - Entire Portfolio ($ 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
75%
86%
86%
78%
81%
ADR
$253
$270
$266
$247
$259
RevPAR
$189
$232
$230
$191
$211
Hotel Revenues
$352.6
$432.1
$424.6
$371.5
$1,580.8
Hotel EBITDA
$94.8
$152.7
$143.8
$101.3
$492.5
Hotel EBITDA Margin
26.9%
35.3%
33.9%
27.3%
31.2%
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
2021
2021
2021
2021
2021
Occupancy
22%
42%
53%
51%
42%
ADR
$260
$262
$287
$262
$270
RevPAR
$58
$109
$152
$135
$114
Hotel Revenues
$112.2
$210.0
$287.4
$265.0
$874.6
Hotel EBITDA
($5.5)
$45.3
$84.1
$58.5
$182.4
Hotel EBITDA Margin
(4.9%)
21.6%
29.3%
22.1%
20.9%
First Quarter
2022
Occupancy
47%
ADR
$306
RevPAR
$145
Hotel Revenues
$269.9
Hotel EBITDA
$59.9
Hotel EBITDA Margin
22.2%
These historical hotel operating results include information for
all of the hotels the Company owned as of June 23, 2022, following
the acquisition of Gurney’s Newport Resort & Marina. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220623005804/en/
Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel
Trust - (240) 507-1330
Pebblebrook Hotel (NYSE:PEB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pebblebrook Hotel (NYSE:PEB)
Historical Stock Chart
From Jul 2023 to Jul 2024