Pebblebrook Hotel Trust Completes Sale of Hotel Spero
August 26 2022 - 7:00AM
Business Wire
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today
announced that on August 25, 2022, it closed on the sale of the
236-room Hotel Spero in San Francisco, CA for $71.0 million to a
third party.
For the trailing twelve months ended June 30, 2022, the hotel’s
net operating loss was ($1.6) million, and its Hotel EBITDA was
($1.4) million. Based on the hotel’s operating performance for
2019, the $71.0 million sales price reflects a 9.1x EBITDA multiple
and a 9.8% net operating income capitalization rate. The net
operating income (loss) 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 Spero 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 52 hotels and resorts, totaling approximately 12,900
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 26, 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 Hotel Spero
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
($4.6
)
Adjustment: Depreciation and amortization
3.2
Hotel EBITDA
($1.4
)
Adjustment: Capital reserve
(0.2
)
Hotel Net Operating Income
($1.6
)
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 Spero 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
$4.5
Adjustment: Depreciation and amortization
3.3
Hotel EBITDA
$7.8
Adjustment: Capital reserve
(0.9
)
Hotel Net Operating Income
$6.9
This press release includes certain non-GAAP financial measures as
defined under Securities and Exchange Commission (SEC) rules. These
measures are not in accordance with, or an alternative to, measures
prepared in accordance with U.S. generally accepted accounting
principles, or GAAP, and may be different from non-GAAP measures
used by other companies. In addition, these non-GAAP measures are
not based on any comprehensive set of accounting rules or
principles. Non-GAAP measures have limitations in that they do not
reflect all of the amounts associated with the hotel’s results of
operations determined in accordance with GAAP.The Company has
presented trailing twelve-month hotel EBITDA and trailing
twelve-month hotel net operating income after capital reserves
because it believes these measures provide investors and analysts
with an understanding of the hotel-level operating performance.
These non-GAAP measures do not represent amounts available for
management’s discretionary use, because of needed capital
replacement or expansion, debt service obligations or other
commitments and uncertainties, nor are they indicative of funds
available to fund the Company’s cash needs, including its ability
to make distributions.The Company’s presentation of the hotel’s
trailing twelve-month EBITDA and trailing twelve-month net
operating income after capital reserves should not be considered as
an alternative to net income (computed in accordance with GAAP) as
an indicator of the hotel’s financial performance. The table above
is a reconciliation of the hotel’s trailing twelve-month EBITDA and
net operating income after capital reserves calculations to net
income in accordance with GAAP. Any differences are a result of
rounding.
Pebblebrook Hotel Trust Historical
Operating Data ($ 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
$252
$271
$269
$248
$261
RevPAR
$189
$233
$231
$191
$211
Hotel Revenues
$334.5
$412.5
$406.1
$353.0
$1,506.2
Hotel EBITDA
$89.5
$145.9
$137.7
$95.9
$469.0
Hotel EBITDA Margin
26.7%
35.4%
33.9%
27.2%
31.1%
First Quarter Second Quarter Third
Quarter Fourth Quarter Full Year
2021
2021
2021
2021
2021
Occupancy
22%
43%
54%
52%
43%
ADR
$265
$264
$290
$265
$273
RevPAR
$60
$113
$157
$138
$117
Hotel Revenues
$110.2
$206.3
$281.4
$258.1
$856.0
Hotel EBITDA
($3.5)
$46.6
$84.3
$58.2
$185.6
Hotel EBITDA Margin
(3.2%)
22.6%
30.0%
22.5%
21.7%
First Quarter Second Quarter
2022
2022
Occupancy
48%
69%
ADR
$311
$323
RevPAR
$150
$222
Hotel Revenues
$264.8
$398.1
Hotel EBITDA
$61.3
$138.8
Hotel EBITDA Margin
23.2%
34.9%
These historical hotel operating results include information for
all of the hotels the Company owned as of August 25, 2022,
following the sale of Hotel Spero. 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/20220825005620/en/
Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel
Trust - (240) 507-1330
Pebblebrook Hotel (NYSE:PEB)
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