Pebblebrook Hotel Trust Completes Sale of Sofitel Philadelphia at Rittenhouse Square
August 03 2022 - 7:00AM
Business Wire
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today
announced that on August 2, 2022, it closed on the sale of the
306-room Sofitel Philadelphia at Rittenhouse Square in
Philadelphia, PA for $80.0 million to a third party.
For the trailing twelve months ended June 30, 2022, the hotel’s
net operating income was $3.1 million, and its Hotel EBITDA was
$3.8 million. Based on the hotel’s operating performance for 2019,
the $80.0 million sales price reflects a 10.0x EBITDA multiple and
an 8.6% 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 Sofitel Philadelphia at Rittenhouse
Square will be used for general corporate purposes and reducing the
Company’s outstanding debt borrowings associated with recent hotel
acquisitions, in accordance with the Company’s investment
strategy.
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 53 hotels and resorts, totaling approximately 13,100
guest rooms across 15 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, 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 August 3, 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 Sofitel Philadelphia at
Rittenhouse Square Reconciliation of Hotel Net Income to
Hotel EBITDA and Hotel Net Operating Income June 2022
Trailing Twelve Months (Unaudited, in millions)
Twelve Months EndedJune 30,
2022
Hotel net income
$
0.5
Adjustment: Depreciation and amortization
3.3
Hotel EBITDA
$
3.8
Adjustment: Capital reserve
(0.7
)
Hotel Net Operating Income
$
3.1
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 Sofitel Philadelphia at Rittenhouse Square
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
$
4.7
Adjustment: Depreciation and amortization
3.3
Hotel EBITDA
$
8.0
Adjustment: Capital reserve
(1.2
)
Hotel Net Operating Income
$
6.8
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
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
75
%
86
%
86
%
77
%
81
%
ADR
$
253
$
271
$
268
$
247
$
260
RevPAR
$
189
$
233
$
231
$
191
$
211
Hotel Revenues
$
340.6
$
418.1
$
411.9
$
358.1
$
1,528.8
Hotel EBITDA
$
91.8
$
148.0
$
139.9
$
97.2
$
476.8
Hotel EBITDA Margin
26.9
%
35.4
%
34.0
%
27.1
%
31.2
%
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
2021
2021
2021
2021
2021
Occupancy
22
%
42
%
53
%
52
%
42
%
ADR
$
264
$
264
$
289
$
264
$
272
RevPAR
$
59
$
111
$
155
$
136
$
116
Hotel Revenues
$
110.8
$
207.0
$
282.5
$
259.2
$
859.5
Hotel EBITDA
($
4.5
)
$
45.9
$
83.8
$
57.8
$
183.0
Hotel EBITDA Margin
(4.1
%)
22.2
%
29.7
%
22.3
%
21.3
%
First Quarter
Second Quarter
2022
2022
Occupancy
48
%
68
%
ADR
$
310
$
322
RevPAR
$
148
$
220
Hotel Revenues
$
265.9
$
400.7
Hotel EBITDA
$
60.7
$
139.0
Hotel EBITDA Margin
22.8
%
34.7
%
These historical hotel operating results include information
for all of the hotels the Company owned as of August 2, 2022,
following the sale of Sofitel Philadelphia at Rittenhouse Square.
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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Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel
Trust - (240) 507-1330
Pebblebrook Hotel (NYSE:PEB)
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