Pebblebrook Hotel Trust (NYSE: PEB):
Q3 FINANCIAL
HIGHLIGHTS
- Net income: $26.3 million
- Same-Property RevPAR(1): up 45.9% vs. 2021 and 1.3% vs.
2019
- Same-Property ADR(1), exceeded 2021 by 10.3% and 2019 by
19.9%
- Same-Property Total Revenues(1): $403.9 million, exceeded 2021
by 44.2% and 2019 by 2.5%
- Adjusted EBITDAre(1): $124.1 million, 112.5% above 2021 and
89.5% recovered vs. 2019
- Adjusted FFO(1) per diluted share: $0.66 vs. $0.19 in 2021 and
$0.78 in 2019
- Completed a $2.0 billion refinancing in October 2022, extending
maturities of all term loans and the unsecured revolvers while
maintaining the pre-pandemic pricing grid
HOTEL OPERATING TRENDS
- July and September Same-Property RevPAR, Total Revenues, and
Hotel EBITDA exceeded the comparable periods in 2019. September
Same-Property Total Revenues exceeded September 2019 by 5%, the
best-performing month vs. 2019 since the pandemic began
- Disruption caused by Hurricane Ian reduced September and
third-quarter revenues by approximately $2.0 million
- Business travel, both group and transient, continues to recover
with urban occupancies and ADRs improving significantly throughout
Q3
- The Company’s portfolio has not experienced any
recession-driven pressures on room night demand, out-of-room spend,
or pricing
PORTFOLIO UPDATES &
REPOSITIONINGS
- Sold the 306-room Sofitel Philadelphia at Rittenhouse Square,
the 236-room Hotel Spero in San Francisco, and the 117-room Hotel
Vintage Portland for aggregate gross sales proceeds of $183.9
million
- Invested $25.7 million into the portfolio in the third
quarter
Q4 2022 OUTLOOK
- Net loss: ($32.2) to ($24.2) million
- Same-Property RevPAR(1) var: (3.0%) to flat vs. 2019; +32.1% to
+36.2% vs. 2021
- Adjusted EBITDAre(1): $63.8 to $71.8 million vs. $44.0 million
in 2021
- Adjusted FFO(1) per diluted share: $0.18 to $0.24, vs. $0.08 in
2021; outlook incorporates the Company’s estimated ($10.5) million
loss of Hotel EBITDA and ($0.08) per share to AFFO due to Hurricane
Ian’s impact on LaPlaya Beach Resort & Club’s operations
(1) See tables later in this press release
for a description of Same-Property information and reconciliations
from net income (loss) to non-GAAP financial measures used in the
table above and elsewhere in this press release.
A stronger than expected recovery in
business transient and group demand led to our third quarter
financial results exceeding the top end of our outlook, despite the
negative impact of Hurricane Ian in late September. Our urban
market hotels experienced strong demand and ADR improvements,
especially in San Francisco, San Diego, Seattle, Washington DC, and
Chicago. These favorable travel trends have continued into the
fourth quarter, which is encouraging. In addition, we made terrific
progress with our property disposition program, completing the sale
of Sofitel Philadelphia, Hotel Spero in San Francisco, and Hotel
Vintage Portland, generating a combined $183.9 million in sales
proceeds. We continue to pursue the selective sale of additional
properties as part of our overall disposition plan. Finally, in
mid-October, we successfully refinanced $2.0 billion of existing
credit facilities and term loans with our bank group. This
financing extended our debt maturities and enhanced our liquidity
and balance sheet flexibility while maintaining pre-pandemic
pricing.
-Jon E. Bortz, Chairman, President, and
Chief Executive Officer of Pebblebrook Hotel Trust
Third Quarter and Year-to-Date Highlights
Third Quarter
Nine Months Ended
September 30,
Same-Property and Corporate
Highlights
2022
2021
(‘22 vs. ‘21 growth)
2019
(‘22 vs. ‘19 growth)
2022
2021
(‘22 vs. ‘21 growth)
2019
(‘22 vs. ‘19 growth)
($ in millions except per share
and RevPAR data)
Net income (loss)
$26.3
($23.5)
$30.0
($45.1)
($143.6)
$96.2
Same-Property Room Revenues(1)
$269.1
$184.5
$265.0
$698.4
$379.1
$758.4
Same-Property Room Revenues growth
rate
45.9%
1.5%
84.2%
(7.9%)
Same-Property Total Revenues(1)
$403.9
$280.1
$394.1
$1,057.7
$586.1
$1,138.5
Same-Property Total Revenues growth
rate
44.2%
2.5%
80.5%
(7.1%)
Same-Property Total Expenses(1)
$273.1
$195.0
$258.8
$731.9
$463.6
$764.8
Same-Property Total Expenses growth
rate
40.0%
5.5%
57.9%
(4.3%)
Same-Property EBITDA(1)
$130.9
$85.1
$135.2
$325.8
$122.5
$373.7
Same-Property EBITDA growth rate
53.8%
(3.2%)
166.1%
(12.8%)
Adjusted EBITDAre(1)
$124.1
$58.4
$138.6
$299.3
$55.7
$384.6
Adjusted EBITDAre growth rate
112.5%
(10.5%)
437.1%
(22.2%)
Adjusted FFO(1)
$86.7
$24.5
$102.7
$195.7
($41.5)
$279.0
Adjusted FFO per diluted share(1)
$0.66
$0.19
$0.78
$1.49
($0.32)
$2.13
Adjusted FFO per diluted share growth
rate
247.4%
(15.4%)
NM
(30.0%)
2022 Monthly
Results
Same-Property Portfolio
Highlights(2)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
($ in millions except ADR and
RevPAR data)
Occupancy
34%
50%
62%
68%
67%
73%
74%
71%
73%
ADR
$269
$308
$305
$319
$314
$323
$334
$309
$318
RevPAR
$91
$153
$188
$218
$210
$236
$246
$219
$234
Total Revenues
$57.0
$84.9
$116.2
$128.3
$129.4
$138.1
$142.3
$128.2
$133.4
Total Revenues growth rate (‘22 vs.
‘19)
(44%)
(21%)
(9%)
(3%)
(6%)
(1%)
4%
(2%)
5%
EBITDA
($3.1)
$20.5
$38.8
$46.6
$42.9
$49.3
$50.4
$37.4
$43.0
Hotel EBITDA growth rate (’22 vs. ’19)
(115%)
(29%)
(9%)
1%
(11%)
(6%)
2%
(13%)
1%
NM = Not Meaningful
(1)
See tables later in this press release for
a description of same-property information and reconciliations from
net income (loss) to non-GAAP financial measures, including
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre,
Funds from Operations ("FFO"), FFO per share, Adjusted FFO and
Adjusted FFO per share.
For the details as to which hotels are
included in Same-Property Room Revenues, Total Revenues, Expenses
and EBITDA appearing in the table above and elsewhere in this press
release, refer to the Same-Property Statistical Data table
footnotes later in this press release.
Adjusted EBITDAre, Adjusted FFO and
Adjusted FFO per share exclude the amortization of share-based
compensation expense. Historical (2021 and 2019 comparable periods)
results of such non-GAAP financial measures have been adjusted to
reflect the exclusion.
(2)
Includes information for all of the hotels
the Company owned as of September 30, 2022, except 1 Hotel San
Francisco (which is excluded from January-September given the
property’s closure for renovation), Inn on Fifth (which is excluded
from January-March given the property’s acquisition on May 11), and
Gurney’s Newport Resort & Marina (which is excluded from
January-June given the property’s acquisition on June 23). Excludes
information for the hotels the company has sold during 2022: The
Marker San Francisco from April-June (sold on June 28), Sofitel
Philadelphia at Rittenhouse Square from July-September (sold on
August 2), Hotel Spero from July-September (sold on August 25), and
Hotel Vintage Portland from July-September (sold September 14).
“Demand continued to recover in the third quarter from the
second quarter, with Same-Property occupancy down 15.5% to 2019
versus the second quarter’s 20.0% decline from 2019,” noted Mr.
Bortz. “Our urban hotels experienced a strong recovery as business
and leisure customers returned to cities. Additionally, our ADR
growth in the third quarter of 19.9% over 2019 was robust and
driven by our resort properties, while our urban hotels achieved an
8.3% rate premium over 2019, demonstrating that pricing power is
not limited to resort markets. Leisure travelers exhibited more
typical seasonal patterns, as occupancies declined gradually
throughout August and September, while the urban recovery forged
ahead. Our strategic acquisition and disposition transactions
completed this year have helped us achieve a more balanced
business/leisure customer mix, which allows us to take advantage of
each season and their strengths moving forward as the lodging
industry continues to recover from the COVID-19 pandemic, and then
grows in future years.”
Update on Impact from Hurricane Ian
The Company’s 189-room LaPlaya Beach Resort & Club
(“LaPlaya”) closed starting September 27, 2022 following a
mandatory hurricane evacuation order issued by Collier County in
advance of the arrival of Hurricane Ian in Naples. The resort
incurred primarily wind and water-related damage, which the Company
currently estimates will cost approximately $15.0 to $25.0 million
to restore the property, including all cleanup, remediation, repair
and replacement work.
The Company is striving to reopen the Bay Tower and the Gulf
Tower to guests by late November following the completion of
necessary repair and restoration work, including guestrooms, lobby,
restaurant, bar, private club, and other public areas. The full
restoration of the Beach House building, which was more
significantly impacted than other buildings at the resort, is
targeted to be completed sometime in the second half of 2023.
The Company currently estimates that due to disruption caused at
LaPlaya by Hurricane Ian, hotel EBITDA and Adjusted EBITDAre in the
fourth quarter will be reduced by approximately $10.5 million,
related to the property’s lost EBITDA and continued expenses
related to operations expected for the fourth quarter. The Company
anticipates receiving insurance proceeds for the business
interruption losses sustained due to the hurricane, net of the
business interruption deductible, which is approximately $1.7
million. The business interruption proceeds and the Company’s
deductible will not be recorded until these losses are determined
and the related insurance proceeds are received.
The Company’s 293-room Southernmost Beach Resort
(“Southernmost”) in Key West, Florida, which remained open
throughout the hurricane, incurred wind and water-related damage.
The Company currently estimates it will cost approximately $7.0 to
$9.0 million to restore the property, including all cleanup,
remediation, repair, and replacement work.
The Company’s 119-room Inn on Fifth, located in downtown Naples,
FL, closed beginning on September 27, 2022, following a mandatory
evacuation order. The property reopened on October 1, 2022. The
Company currently estimates it will cost approximately $1.5 to $2.5
million to restore the property, including all cleanup,
remediation, repair, and replacement work.
In the third quarter, the Company recorded a $12.9 million net
impairment charge for the estimated damage to LaPlaya and
Southernmost’s assets. However, the total physical cost and
insurance claim will not likely be determined until sometime in
2023. The Company maintains property, wind, and flood insurance,
subject to estimated deductibles for LaPlaya and Southernmost of
approximately $7.9 million, in total.
The Company’s remaining four hotels and resorts in southern
Florida and Georgia impacted by Hurricane Ian are open and fully
operational. The Company believes that the cost to repair any
property damage at these properties will not be material.
Capital Investments and Strategic Property
Redevelopments
In the third quarter of 2022, the Company completed $25.7
million of capital investments throughout its portfolio. The
Company has completed $68.2 million of capital improvements and
projects year to date through September 2022.
The Company expects to invest a total of $100.0 to $110.0
million in capital improvements during 2022, which includes
commencing the redevelopment and repositioning projects at Solamar
Hotel (to be converted to Margaritaville Hotel San Diego Gaslamp
Quarter), Hilton San Diego Gaslamp Quarter, Jekyll Island Club
Resort, Viceroy Santa Monica Hotel, and Estancia La Jolla Hotel
& Spa, as well as the development of a new outdoor venue and
additional alternative lodging units at Skamania Lodge.
Update on Strategic Dispositions
On August 2, 2022, the Company sold the 306-room Sofitel
Philadelphia at Rittenhouse Square for $80.0 million. On August 25,
2022, the Company sold the 236-room Hotel Spero in San Francisco
for $71.0 million. On September 14, 2022, the Company sold the
117-room Hotel Vintage Portland for $32.9 million. Year-to-date,
the Company has completed four hotel dispositions totaling $260.9
million of proceeds.
Balance Sheet and Liquidity
The Company successfully refinanced $2.0 billion of credit
facilities and term loans on October 13, 2022, resulting in a
$650.0 million senior unsecured revolving credit facility and three
term loans totaling $1.4 billion. The Company’s $611.0 million
revolving credit facility was increased to $650.0 million and its
maturity was extended to October 2027, inclusive of two optional
six-month extensions. The three $460.0 million term loans are
scheduled to mature in October 2024, October 2025, and October
2027, respectively. With the completion of this refinancing, the
Company has no meaningful debt maturities until October 2024.
Following the completion of the Company’s October 2022
refinancing, the Company has approximately $2.4 billion in
consolidated debt and convertible notes at an effective
weighted-average interest rate of 3.2 percent. Approximately $1.9
billion, or 79 percent, is fixed at a weighted-average interest
rate of 2.7 percent, and $0.5 billion, or 21 percent, is floating
at a weighted-average floating interest rate of 4.9 percent. Since
the end of the second quarter 2022, the Company has paid down
approximately $127.0 million of debt.
Common and Preferred Dividends
On September 15, 2022, the Company declared a quarterly cash
dividend of $0.01 per share on its common shares as well as a
regular quarterly cash dividend for the following preferred shares
of beneficial interest:
- $0.39844 per 6.375% Series E Cumulative Redeemable Preferred
Share;
- $0.39375 per 6.3% Series F Cumulative Redeemable Preferred
Share;
- $0.39844 per 6.375% Series G Cumulative Redeemable Preferred
Share; and
- $0.35625 per 5.7% Series H Cumulative Redeemable Preferred
Share.
Update on Curator Hotel & Resort Collection
Curator Hotel & Resort Collection (“Curator”) is a distinct
collection of experientially focused small brands and independent
lifestyle hotels and resorts worldwide founded by Pebblebrook and
several industry-leading independent lifestyle hotel operators. As
of September 30, 2022, Curator had 88 member hotels. In the third
quarter of 2022, Curator strengthened its roster with three new
member hotels, The Fontaine in Kansas City, Missouri, Inn on Fifth
in Naples, Florida, and Newpark Resort in Park City, Utah. As of
September 30, 2022, Curator had 91 master service agreements with
preferred vendor partners, providing Curator member hotels with
preferred pricing, enhanced operating terms and early access to
curated new technologies.
Q4 and Full Year 2022 Outlook
Based on current trends and assuming no material disruptions to
travel caused by the COVID-19 pandemic, the Company’s outlook for
Q4 2022 is as follows:
Q4 2022 Outlook
Low
High
($ and shares/units in millions,
except per share and RevPAR data)
Net loss
($32.2)
($24.2)
Adjusted EBITDAre
$63.8
$71.8
Adjusted FFO
$24.2
$32.2
Adjusted FFO per diluted share
$0.18
$0.24
This Q4 2022 Outlook is based, in part, on the following
estimates and assumptions:
Same-Property RevPAR
$183
$188
Same-Property RevPAR variance vs. 2019
(3.0%)
0.0%
Same-Property RevPAR variance vs. 2021
32.1%
36.2%
Same-Property EBITDA
$75.0
$83.0
Same-Property EBITDA variance vs. 2019
(15.9%)
(7.0%)
Based on the above Q4 2022 outlook, the implied full-year 2022
outlook is as follows:
Full Year 2022 Outlook
Low
High
($ and shares/units in millions,
except per share and RevPAR data)
Net loss
($77.4)
($69.4)
Adjusted EBITDAre
$363.0
$371.0
Adjusted FFO
$219.8
$227.8
Adjusted FFO per diluted share
$1.66
$1.72
This Full Year 2022 Outlook is based, in part, on the following
estimates and assumptions:
Same-Property RevPAR
$195
$196
Same-Property RevPAR variance vs. 2019
(7.0%)
(6.5%)
Same-Property RevPAR variance vs. 2021
68.9%
69.8%
Same-Property EBITDA
$400.8
$408.8
Same-Property EBITDA variance vs. 2019
(13.4%)
(11.7%)
Third Quarter 2022 Earnings Call
The Company will conduct its quarterly analyst and investor
conference call on Friday, October 28, 2022, at 9:00 AM ET. Please
dial (877) 407-3982 approximately ten minutes before the call
begins to participate. Additionally, a live webcast of the
conference call will be available through the Investor Relations
section of www.pebblebrookhotels.com. To access the webcast, click
on
https://investor.pebblebrookhotels.com/news-and-events/webcasts/default.aspx
ten minutes before the conference call. A replay of the conference
call webcast will be archived and available online.
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 51 hotels and resorts, totaling approximately 12,800
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 “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: descriptions of
the Company’s plans or objectives for future capital investment
projects, operations or services; forecasts of the Company’s future
economic performance; forecasts of hotel industry performance; 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 SEC, 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 filings with the U.S.
Securities and Exchange Commission, 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 October 27, 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 Consolidated Balance
Sheets ($ in thousands, except share and per-share data)
September 30,2022 December 31,2021 (Unaudited)
ASSETS Assets: Investment in hotel properties, net
$
5,964,823
$
6,079,333
Cash and cash equivalents
190,750
58,518
Restricted cash
19,371
33,729
Hotel receivables (net of allowance for doubtful accounts of $391
and $1,142, respectively)
66,759
37,045
Prepaid expenses and other assets
94,683
52,565
Total assets
$
6,336,386
$
6,261,190
LIABILITIES AND EQUITY
Liabilities: Unsecured revolving credit facilities
$
-
$
-
Unsecured term loans, net of unamortized deferred financing costs
1,403,658
1,427,256
Convertible senior notes, net of unamortized debt premium and
discount and deferred financing costs
746,103
745,401
Senior unsecured notes, net of unamortized deferred financing costs
49,899
49,838
Mortgage loans, net of unamortized debt discount and deferred
financing costs
219,110
219,393
Accounts payable, accrued expenses and other liabilities
278,093
250,584
Lease liabilities - operating leases
320,323
319,426
Deferred revenues
72,808
69,064
Accrued interest
10,408
4,567
Distribution payable
12,559
11,756
Total liabilities
3,112,961
3,097,285
Commitments and contingencies
Shareholders' Equity:
Preferred shares of beneficial interest, $0.01 par value
(liquidation preference $740,000 at September 30, 2022 and December
31, 2021), 100,000,000 shares authorized; 29,600,000 shares issued
and outstanding at September 30, 2022 and December 31, 2021
296
296
Common shares of beneficial interest, $0.01 par value, 500,000,000
shares authorized; 130,905,132 shares issued and outstanding at
September 30, 2022 and 130,813,750 shares issued and outstanding at
December 31, 2021
1,309
1,308
Additional paid-in capital
4,273,603
4,268,042
Accumulated other comprehensive income (loss)
38,796
(19,442
)
Distributions in excess of retained earnings
(1,178,289
)
(1,094,023
)
Total shareholders' equity
3,135,715
3,156,181
Non-controlling interests
87,710
7,724
Total equity
3,223,425
3,163,905
Total liabilities and equity
$
6,336,386
$
6,261,190
Pebblebrook Hotel Trust Consolidated Statements of
Operations ($ in thousands, except share and per-share
data) (Unaudited) Three months endedSeptember
30, Nine months endedSeptember 30,
2022
2021
2022
2021
Revenues: Room
$
277,971
$
162,548
$
707,997
$
324,614
Food and beverage
98,080
48,900
261,228
95,223
Other operating
40,642
27,362
103,060
65,930
Total revenues
$
416,693
$
238,810
$
1,072,285
$
485,767
Expenses: Hotel operating expenses: Room
$
66,637
$
40,504
$
167,102
$
85,777
Food and beverage
69,296
34,925
179,859
68,121
Other direct and indirect
115,589
72,622
307,317
174,069
Total hotel operating expenses
251,522
148,051
654,278
327,967
Depreciation and amortization
60,372
55,492
179,746
165,636
Real estate taxes, personal property taxes, property insurance, and
ground rent
34,641
26,204
98,118
84,230
General and administrative
10,281
9,433
29,675
26,803
Impairment and other losses
12,865
-
86,119
14,856
Gain on sale of hotel properties
(6,194
)
(171
)
(6,194
)
(64,729
)
Other operating expenses
989
431
4,045
1,514
Total operating expenses
364,476
239,440
1,045,787
556,277
Operating income (loss)
52,217
(630
)
26,498
(70,510
)
Interest expense
(25,020
)
(22,930
)
(70,753
)
(73,065
)
Other
123
27
156
85
Income (loss) before income taxes
27,320
(23,533
)
(44,099
)
(143,490
)
Income tax (expense) benefit
(1,015
)
(5
)
(1,015
)
(60
)
Net income (loss)
26,305
(23,538
)
(45,114
)
(143,550
)
Net income (loss) attributable to non-controlling interests
1,237
(125
)
1,359
(1,085
)
Net income (loss) attributable to the Company
25,068
(23,413
)
(46,473
)
(142,465
)
Distributions to preferred shareholders
(11,344
)
(12,528
)
(34,031
)
(30,761
)
Issuance costs of redeemed preferred shares
-
(8,043
)
-
(8,043
)
Net income (loss) attributable to common shareholders
$
13,724
$
(43,984
)
$
(80,504
)
$
(181,269
)
Net income (loss) per share available to common
shareholders, basic
$
0.10
$
(0.34
)
$
(0.62
)
$
(1.39
)
Net income (loss) per share available to common shareholders,
diluted
$
0.10
$
(0.34
)
$
(0.62
)
$
(1.39
)
Weighted-average number of common shares, basic
130,905,132
130,813,750
130,904,772
130,801,187
Weighted-average number of common shares, diluted
131,149,783
130,813,750
130,904,772
130,801,187
Pebblebrook Hotel
Trust
Reconciliation of Net Income
(Loss) to FFO and Adjusted FFO
($ in thousands, except share
and per-share data)
(Unaudited)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2019
2022
2021
2019
Net income (loss)
$
26,305
$
(23,538
)
$
29,980
$
(45,114
)
$
(143,550
)
$
96,153
Adjustments: Real estate depreciation and amortization
60,285
55,379
69,712
179,480
165,301
177,195
Gain on sale of hotel properties
(6,194
)
(171
)
-
(6,194
)
(64,729
)
-
Impairment loss
12,865
-
-
86,119
14,856
-
FFO
$
93,261
$
31,670
$
99,692
$
214,291
$
(28,122
)
$
273,348
Distribution to preferred shareholders and unit holders
(12,507
)
(12,528
)
(8,139
)
(35,842
)
(30,761
)
(24,417
)
Issuance costs of redeemed preferred shares
-
(8,043
)
-
-
(8,043
)
-
FFO available to common share and unit holders
$
80,754
$
11,099
$
91,553
$
178,449
$
(66,926
)
$
248,931
Transaction costs
179
(49
)
4,035
331
63
7,576
Non-cash ground rent
1,933
983
1,318
5,808
2,769
3,274
Management/franchise contract transition costs
(43
)
181
810
346
135
4,783
Interest expense adjustment for acquired liabilities
521
395
216
2,007
1,316
689
Finance lease adjustment
728
716
810
2,175
2,318
2,193
Non-cash amortization of acquired intangibles
(536
)
(543
)
(315
)
(1,620
)
(1,050
)
(1,050
)
Non-cash interest expense
-
443
1,379
49
1,621
4,761
One-time operation suspension expenses
-
-
-
-
132
-
Early extinguishment of debt
-
165
726
-
1,700
1,698
Amortization of share-based compensation expense
3,180
3,101
2,133
8,154
8,345
6,099
Issuance costs of redeemed preferred shares
-
8,043
-
-
8,043
-
Adjusted FFO available to common share and unit holders
$
86,716
$
24,534
$
102,665
$
195,699
$
(41,534
)
$
278,954
FFO per common share - basic
$
0.61
$
0.08
$
0.70
$
1.35
$
(0.51
)
$
1.90
FFO per common share - diluted
$
0.61
$
0.08
$
0.70
$
1.35
$
(0.51
)
$
1.90
Adjusted FFO per common share - basic
$
0.66
$
0.19
$
0.78
$
1.49
$
(0.32
)
$
2.13
Adjusted FFO per common share - diluted
$
0.66
$
0.19
$
0.78
$
1.49
$
(0.32
)
$
2.13
Weighted-average number of basic common shares and units
131,782,236
131,674,563
130,854,912
131,781,876
131,662,000
130,837,149
Weighted-average number of fully diluted common shares and units
132,026,887
131,674,563
130,992,086
131,781,876
131,662,000
131,060,298
This press release includes certain non-GAAP financial measures.
These measures are not in accordance with, or an alternative to,
measures prepared in accordance with GAAP and may be different from
similarly titled non-GAAP financial measures used by other
companies. In addition, these non-GAAP financial measures are not
based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures have limitations in that they do not
reflect all of the amounts associated with the Company’s results of
operations determined in accordance with GAAP.Funds from Operations
(“FFO”) - FFO represents net income (computed in accordance with
GAAP), excluding gains or losses from sales of properties, plus
real estate-related depreciation and amortization and after
adjustments for unconsolidated partnerships. The Company considers
FFO a useful measure of performance for an equity REIT because it
facilitates an understanding of the Company's operating performance
without giving effect to real estate depreciation and amortization,
which assume that the value of real estate assets diminishes
predictably over time. Since real estate values have historically
risen or fallen with market conditions, the Company believes that
FFO provides a meaningful indication of its performance. The
Company also considers FFO an appropriate performance measure given
its wide use by investors and analysts. The Company computes FFO in
accordance with standards established by the Board of Governors of
Nareit in its March 1995 White Paper (as amended in November 1999
and April 2002), which may differ from the methodology for
calculating FFO utilized by other equity REITs and, accordingly,
may not be comparable to that of other REITs. Further, FFO does 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 is it
indicative of funds available to fund the Company’s cash needs,
including its ability to make distributions. The Company presents
FFO per diluted share calculations that are based on the
outstanding dilutive common shares plus the outstanding Operating
Partnership units for the periods presented.The Company also
evaluates its performance by reviewing Adjusted FFO because it
believes that adjusting FFO to exclude certain recurring and
non-recurring items described below provides useful supplemental
information regarding the Company's ongoing operating performance
and that the presentation of Adjusted FFO, when combined with the
primary GAAP presentation of net income (loss), more completely
describes the Company's operating performance. The Company adjusts
FFO available to common share and unit holders for the following
items, which may occur in any period, and refers to this measure as
Adjusted FFO:- Transaction costs: The Company excludes transaction
costs expensed during the period because it believes that including
these costs in FFO does not reflect the underlying financial
performance of the Company and its hotels.- Non-cash ground rent:
The Company excludes the non-cash ground rent expense, which is
primarily made up of the straight-line rent impact from a ground
lease.- Management/franchise contract transition costs: The Company
excludes one-time management and/or franchise contract transition
costs expensed during the period because it believes that including
these costs in FFO does not reflect the underlying financial
performance of the Company and its hotels.- Interest expense
adjustment for acquired liabilities: The Company excludes interest
expense adjustment for acquired liabilities assumed in connection
with acquisitions, because it believes that including these
non-cash adjustments in FFO does not reflect the underlying
financial performance of the Company.- Finance lease adjustment:
The Company excludes the effect of non-cash interest expense from
finance leases because it believes that including these non-cash
adjustments in FFO does not reflect the underlying financial
performance of the Company.- Non-cash amortization of acquired
intangibles: The Company excludes the non-cash amortization of
acquired intangibles, which includes but is not limited to the
amortization of favorable and unfavorable leases or management
agreements and above/below market real estate tax reduction
agreements because it believes that including these non-cash
adjustments in FFO does not reflect the underlying financial
performance of the Company.- Non-cash interest expense, one-time
operation suspension expenses, early extinguishment of debt,
amortization of share-based compensation expense, and issuance
costs of redeemed preferred shares: The Company excludes these
items because the Company believes that including these adjustments
in FFO does not reflect the underlying financial performance of the
Company and its hotels.The Company presents weighted-average number
of basic and fully diluted common shares and units by excluding the
dilutive effect of shares issuable upon conversion of convertible
debt.The Company’s presentation of FFO in accordance with the
Nareit White Paper, and as adjusted by the Company, should not be
considered as an alternative to net income (computed in accordance
with GAAP) as an indicator of the Company’s financial performance
or to cash flow from operating activities (computed in accordance
with GAAP) as an indicator of its liquidity.
Pebblebrook Hotel
Trust
Reconciliation of Net Income
(Loss) to EBITDA, EBITDAre and Adjusted EBITDAre
($ in thousands)
(Unaudited)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2019
2022
2021
2019
Net income (loss)
$
26,305
$
(23,538
)
$
29,980
$
(45,114
)
$
(143,550
)
$
96,153
Adjustments: Interest expense
25,020
22,930
26,465
70,753
73,065
84,512
Income tax expense (benefit)
1,015
5
4,382
1,015
60
5,924
Depreciation and amortization
60,372
55,492
69,775
179,746
165,636
177,376
EBITDA
$
112,712
$
54,889
$
130,602
$
206,400
$
95,211
$
363,965
Gain on sale of hotel properties
(6,194
)
(171
)
-
(6,194
)
(64,729
)
-
Impairment loss
12,865
-
-
86,119
14,856
-
EBITDAre
$
119,383
$
54,718
$
130,602
$
286,325
$
45,338
$
363,965
Transaction costs
179
(49
)
4,035
331
63
7,576
Non-cash ground rent
1,933
983
1,318
5,808
2,769
3,274
Management/franchise contract transition costs
(43
)
181
810
346
135
4,783
Non-cash amortization of acquired intangibles
(536
)
(543
)
(315
)
(1,620
)
(1,050
)
(1,050
)
One-time operation suspension expenses
-
-
-
-
132
-
Amortization of share-based compensation expense
3,180
3,101
2,133
8,154
8,345
6,099
Adjusted EBITDAre
$
124,096
$
58,391
$
138,583
$
299,344
$
55,732
$
384,647
This press release includes certain non-GAAP financial measures.
These measures are not in accordance with, or an alternative to,
measures prepared in accordance with GAAP and may be different from
similarly titled non-GAAP financial measures used by other
companies. In addition, these non-GAAP financial measures are not
based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures have limitations in that they do not
reflect all of the amounts associated with the Company’s results of
operations determined in accordance with GAAP.Earnings before
Interest, Taxes, and Depreciation and Amortization ("EBITDA") - The
Company believes that EBITDA provides investors a useful financial
measure to evaluate its operating performance, excluding the impact
of our capital structure (primarily interest expense) and our asset
base (primarily depreciation and amortization).Earnings before
Interest, Taxes, and Depreciation and Amortization for Real Estate
("EBITDAre") - The Company believes that EBITDAre provides
investors a useful financial measure to evaluate its operating
performance, and the Company presents EBITDAre in accordance with
Nareit guidelines, as defined in its September 2017 white paper
"Earnings Before Interest, Taxes, Depreciation and Amortization for
Real Estate." EBITDAre adjusts EBITDA for the following items,
which may occur in any period, and refers to these measures as
Adjusted EBITDAre: (1) gains or losses on the disposition of
depreciated property, including gains or losses on change of
control; (2) impairment write-downs of depreciated property and of
investments in unconsolidated affiliates caused by a decrease in
value of depreciated property in the affiliate; and (3) adjustments
to reflect the entity's share of EBITDAre of unconsolidated
affiliates.The Company also evaluates its performance by reviewing
Adjusted EBITDAre because it believes that adjusting EBITDAre to
exclude certain recurring and non-recurring items described below
provides useful supplemental information regarding the Company's
ongoing operating performance and that the presentation of Adjusted
EBITDAre, when combined with the primary GAAP presentation of net
income (loss), more completely describes the Company's operating
performance. The Company adjusts EBITDAre for the following items,
which may occur in any period, and refers to these measures as
Adjusted EBITDAre:- Transaction costs: The Company excludes
transaction costs expensed during the period because it believes
that including these costs in EBITDAre does not reflect the
underlying financial performance of the Company and its hotels.-
Non-cash ground rent: The Company excludes the non-cash ground rent
expense, which is primarily made up of the straight-line rent
impact from a ground lease.- Management/franchise contract
transition costs: The Company excludes one-time management and/or
franchise contract transition costs expensed during the period
because it believes that including these costs in EBITDAre does not
reflect the underlying financial performance of the Company and its
hotels.- Non-cash amortization of acquired intangibles: The Company
excludes the non-cash amortization of acquired intangibles, which
includes but is not limited to the amortization of favorable and
unfavorable leases or management agreements and above/below market
real estate tax reduction agreements because it believes that
including these non-cash adjustments in EBITDAre does not reflect
the underlying financial performance of the Company and its
hotels.- One-time operation suspension expenses, and amortization
of share-based compensation expense: The Company excludes these
items because it believes that including these costs in EBITDAre
does not reflect the underlying financial performance of the
Company and its hotels.The Company’s presentation of EBITDAre, and
as adjusted by the Company, should not be considered as an
alternative to net income (computed in accordance with GAAP) as an
indicator of the Company’s financial performance or to cash flow
from operating activities (computed in accordance with GAAP) as an
indicator of its liquidity.
Pebblebrook Hotel Trust
Reconciliation of Q4 2022 and Full Year 2022 Outlook Net Income
(Loss) to FFO and Adjusted FFO ($ in millions, except per
share data) (Unaudited) Three months
endingDecember 31, 2022 Year endingDecember 31, 2022
Low High Low High Net income
(loss)
$
(32
)
$
(24
)
$
(77
)
$
(69
)
Adjustments: Real estate depreciation and amortization
62
62
241
241
(Gain) loss on sale of hotel properties
-
-
(6
)
(6
)
Impairment loss
-
-
86
86
FFO
$
30
$
38
$
244
$
252
Distribution to preferred shareholders and unit holders
(13
)
(13
)
(48
)
(48
)
FFO available to common share and unit holders
$
17
$
25
$
196
$
204
Non-cash ground rent
2
2
8
8
Amortization of share-based compensation expense
3
3
11
11
Other
2
2
5
5
Adjusted FFO available to common share and unit holders
$
24
$
32
$
220
$
228
FFO per common share - diluted
$
0.13
$
0.19
$
1.48
$
1.54
Adjusted FFO per common share - diluted
$
0.18
$
0.24
$
1.66
$
1.72
Weighted-average number of fully diluted common shares and
units
132.0
132.0
132.1
132.1
To supplement the Company’s consolidated financial statements
presented in accordance with U.S. GAAP, this press release includes
certain non-GAAP financial measures as defined under SEC
rules.These measures are not in accordance with, or an alternative
to, measures prepared in accordance with GAAP and may be different
from similarly titled non-GAAP financial measures used by other
companies. In addition, these non-GAAP financial measures are not
based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures have limitations in that they do not
reflect all of the amounts associated with the Company’s results of
operations determined in accordance with GAAP.Funds from Operations
(“FFO”) - FFO represents net income (computed in accordance with
GAAP), excluding gains or losses from sales of properties, plus
real estate-related depreciation and amortization and after
adjustments for unconsolidated partnerships. The Company considers
FFO a useful measure of performance for an equity REIT because it
facilitates an understanding of the Company's operating performance
without giving effect to real estate depreciation and amortization,
which assume that the value of real estate assets diminishes
predictably over time. Since real estate values have historically
risen or fallen with market conditions, the Company believes that
FFO provides a meaningful indication of its performance. The
Company also considers FFO an appropriate performance measure given
its wide use by investors and analysts. The Company computes FFO in
accordance with standards established by the Board of Governors of
Nareit in its March 1995 White Paper (as amended in November 1999
and April 2002), which may differ from the methodology for
calculating FFO utilized by other equity REITs and, accordingly,
may not be comparable to that of other REITs. Further, FFO does 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 is it
indicative of funds available to fund the Company’s cash needs,
including its ability to make distributions. The Company presents
FFO per diluted share calculations that are based on the
outstanding dilutive common shares plus the outstanding Operating
Partnership units for the periods presented.The Company also
evaluates its performance by reviewing Adjusted FFO because it
believes that adjusting FFO to exclude certain recurring and
non-recurring items described below provides useful supplemental
information regarding the Company's ongoing operating performance
and that the presentation of Adjusted FFO, when combined with the
primary GAAP presentation of net income (loss), more completely
describes the Company's operating performance. The Company adjusts
FFO for the following items, which may occur in any period, and
refers to this measure as Adjusted FFO:- Non-cash ground rent: The
Company excludes the non-cash ground rent expense, which is
primarily made up of the straight-line rent impact from a ground
lease.- Non-cash interest expense: The Company excludes non-cash
interest expense because the Company believes that including this
adjustment in FFO does not reflect the underlying financial
performance of the Company and its hotels.- Amortization of
share-based compensation expense: The Company excludes the
amortization of share-based compensation expense because the
Company believes that including this adjustment in FFO does not
reflect the underlying financial performance of the Company and its
hotels.- Other: The Company excludes other expenses, which include
transaction costs, management/franchise contract transition costs,
interest expense adjustment for acquired liabilities, finance lease
adjustment and non-cash amortization of acquired intangibles
because the Company believes that including these non-cash
adjustments in FFO does not reflect the underlying financial
performance of the Company and its hotels.The Company’s
presentation of FFO in accordance with the Nareit White Paper, and
as adjusted by the Company, should not be considered as an
alternative to net income (computed in accordance with GAAP) as an
indicator of the Company’s financial performance or to cash flow
from operating activities (computed in accordance with GAAP) as an
indicator of its liquidity.Any differences are a result of
rounding.
Pebblebrook Hotel Trust Reconciliation of Q4
2022 and Full Year 2022 Outlook Net Income (Loss) to EBITDA,
EBITDAre and Adjusted EBITDAre ($ in millions)
(Unaudited) Three months endingDecember 31,
2022 Year endingDecember 31, 2022 Low High
Low High Net income (loss)
$
(32
)
$
(24
)
$
(77
)
$
(69
)
Adjustments: Interest expense and income tax expense
28
28
100
100
Depreciation and amortization
62
62
241
241
EBITDA
$
58
$
66
$
264
$
272
(Gain) loss on sale of hotel properties
-
-
(6
)
(6
)
Impairment loss
-
-
86
86
EBITDAre
$
58
$
66
$
344
$
352
Non-cash ground rent
2
2
8
8
Amortization of share-based compensation expense
3
3
11
11
Other
1
1
-
-
Adjusted EBITDAre
$
64
$
72
$
363
$
371
To supplement the Company’s consolidated financial statements
presented in accordance with U.S. GAAP, this press release includes
certain non-GAAP financial measures as defined under SEC
rules.These measures are not in accordance with, or an alternative
to, measures prepared in accordance with GAAP and may be different
from similarly titled non-GAAP financial measures used by other
companies. In addition, these non-GAAP financial measures are not
based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures have limitations in that they do not
reflect all of the amounts associated with the Company’s results of
operations determined in accordance with GAAP.Earnings before
Interest, Taxes, and Depreciation and Amortization ("EBITDA") - The
Company believes that EBITDA provides investors a useful financial
measure to evaluate its operating performance, excluding the impact
of our capital structure (primarily interest expense) and our asset
base (primarily depreciation and amortization).Earnings before
Interest, Taxes, and Depreciation and Amortization for Real Estate
("EBITDAre") - The Company believes that EBITDAre provides
investors a useful financial measure to evaluate its operating
performance, and the Company presents EBITDAre in accordance with
the National Association of Real Estate Investment Trusts
("Nareit") guidelines, as defined in its September 2017 white paper
"Earnings Before Interest, Taxes, Depreciation and Amortization for
Real Estate." EBITDAre adjusts EBITDA for the following items,
which may occur in any period, and refers to these measures as
Adjusted EBITDAre: (1) gains or losses of on the disposition of
depreciated property, including gains or losses on change of
control; (2) impairment write-downs of depreciated property and of
investments in unconsolidated affiliates caused by a decrease in
value of depreciated property in the affiliate; and (3) adjustments
to reflect the entity's share of EBITDAre of unconsolidated
affiliates.The Company also evaluates its performance by reviewing
Adjusted EBITDAre because it believes that adjusting EBITDAre to
exclude certain recurring and non-recurring items described below
provides useful supplemental information regarding the Company's
ongoing operating performance and that the presentation of Adjusted
EBITDAre, when combined with the primary GAAP presentation of net
income (loss), more completely describes the Company's operating
performance. The Company adjusts EBITDAre for the following items,
which may occur in any period, and refers to these measures as
Adjusted EBITDAre:- Non-cash ground rent: The Company excludes the
non-cash ground rent expense, which is primarily made up of the
straight-line rent impact from a ground lease.- Amortization of
share-based compensation expense: The Company excludes amortization
of share-based compensation expense because the Company believes
that including this non-cash adjustment in EBITDAre does not
reflect the underlying financial performance of the Company and its
hotels.- Other: The Company excludes other expenses, which include
transaction costs, management/franchise contract transition costs
and non-cash amortization of acquired intangibles because the
Company believes that including these non-cash adjustments in
EBITDAre does not reflect the underlying financial performance of
the Company and its hotels.The Company’s presentation of EBITDAre,
and as adjusted by the Company, should not be considered as an
alternative to net income (computed in accordance with GAAP) as an
indicator of the Company’s financial performance or to cash flow
from operating activities (computed in accordance with GAAP) as an
indicator of its liquidity.Any differences are a result of
rounding.
Pebblebrook Hotel Trust Same-Property
Statistical Data (Unaudited)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2019
2022
2021
2019
Same-Property Occupancy
72.7
%
54.9
%
86.0
%
63.4
%
39.8
%
82.7
%
2022 vs. 2021 Increase/(Decrease)
32.3
%
59.4
%
2022 vs. 2019 Increase/(Decrease)
(15.5
%)
(23.3
%)
Same-Property ADR
$
320.53
$
290.71
$
267.37
$
313.89
$
271.54
$
262.07
2022 vs. 2021 Increase/(Decrease)
10.3
%
15.6
%
2022 vs. 2019 Increase/(Decrease)
19.9
%
19.8
%
Same-Property RevPAR
$
232.99
$
159.70
$
229.93
$
199.06
$
108.05
$
216.63
2022 vs. 2021 Increase/(Decrease)
45.9
%
84.2
%
2022 vs. 2019 Increase/(Decrease)
1.3
%
(8.1
%)
Same-Property Total RevPAR
$
349.67
$
242.48
$
341.88
$
301.47
$
167.04
$
325.20
2022 vs. 2021 Increase/(Decrease)
44.2
%
80.5
%
2022 vs. 2019 Increase/(Decrease)
2.3
%
(7.3
%)
Notes: The schedule of hotel results
for the three months ended September 30 includes information from
all of the hotels the Company owned as of September 30, 2022,
except for 1 Hotel San Francisco for Q3 2022, 2021 and 2019 due to
its closure for renovation during Q3 2021. Additionally, the
schedule excludes Sofitel Philadelphia at Rittenhouse Square for Q3
2022, 2021 and 2019 due to its sale on August 2, 2022; Hotel Spero
for Q3 2022, 2021 and 2019 due to its sale on August 25, 2022 and
Hotel Vintage Portland for Q3 2022, 2021 and 2019 due to its sale
on September 14, 2022.The schedule of hotel results for the nine
months ended September 30 includes information from all of the
hotels the Company owned as of September 30, 2022, except for 1
Hotel San Francisco for Q1, Q2 and Q3 2022, 2021 and 2019 due to
its closure for renovation from Q3 2021 to Q2 2022; the Inn on
Fifth for Q1 2022, 2021 and 2019 due to its acquisition on May 11,
2022, and Newport Harbor Island Resort for Q1 and Q2 2022, 2021 and
2019 due to its acquisition on June 23, 2022. Additionally, the
schedule excludes The Marker San Francisco for Q2 & Q3 2022,
2021 and 2019 due to its sale on June 28, 2022; Sofitel
Philadelphia at Rittenhouse Square for Q3 2022, 2021 and 2019 due
to its sale on August 2, 2022; Hotel Spero for Q3 2022, 2021 and
2019 due to its sale on August 25, 2022 and Hotel Vintage Portland
for Q3 2022, 2021 and 2019 due to its sale on September 14,
2022.These hotel results for the respective periods may include
information reflecting operational performance prior to the
Company's ownership of the hotels. Any differences are a result of
rounding.The information above has not been audited and is
presented only for comparison purposes.
Pebblebrook Hotel
Trust Same-Property Statistical Data - by Market
(Unaudited) Three months endedSeptember 30,
Nine months endedSeptember 30, Three months
endedSeptember 30, Nine months endedSeptember 30,
2022 vs. 2021 2022 vs. 2021 2022 vs. 2019
2022 vs. 2019 Same-Property RevPAR variance: Southern
Florida/Georgia
16(3.1
%)
21.3
%
37.3
%
43.6
%
Other
6.0
%
34.8
%
43.4
%
17.9
%
San Diego
35.9
%
67.5
%
25.7
%
9.2
%
Boston
61.8
%
137.2
%
(1.6
%)
(4.8
%)
Los Angeles
44.9
%
105.9
%
(8.4
%)
(11.9
%)
Chicago
127.5
%
251.4
%
(6.7
%)
(19.1
%)
Portland
42.3
%
67.5
%
(11.9
%)
(20.6
%)
Washington DC
124.9
%
205.3
%
(11.7
%)
(31.6
%)
Seattle
107.5
%
157.9
%
(17.0
%)
(34.5
%)
San Francisco
154.9
%
261.2
%
(34.2
%)
(53.8
%)
East Coast
30.7
%
64.3
%
9.8
%
8.0
%
West Coast
52.0
%
95.3
%
(2.8
%)
(17.5
%)
Notes: The schedule of hotel results
for the three months ended September 30 includes information from
all of the hotels the Company owned as of September 30, 2022,
except for 1 Hotel San Francisco for Q3 2022, 2021 and 2019 due to
its closure for renovation during Q3 2021. Additionally, the
schedule excludes Sofitel Philadelphia at Rittenhouse Square for Q3
2022, 2021 and 2019 due to its sale on August 2, 2022; Hotel Spero
for Q3 2022, 2021 and 2019 due to its sale on August 25, 2022 and
Hotel Vintage Portland for Q3 2022, 2021 and 2019 due to its sale
on September 14, 2022.The schedule of hotel results for the nine
months ended September 30 includes information from all of the
hotels the Company owned as of September 30, 2022, except for 1
Hotel San Francisco for Q1, Q2 and Q3 2022, 2021 and 2019 due to
its closure for renovation from Q3 2021 to Q2 2022; the Inn on
Fifth for Q1 2022, 2021 and 2019 due to its acquisition on May 11,
2022, and Newport Harbor Island Resort for Q1 and Q2 2022, 2021 and
2019 due to its acquisition on June 23, 2022. Additionally, the
schedule excludes The Marker San Francisco for Q2 & Q3 2022,
2021 and 2019 due to its sale on June 28, 2022; Sofitel
Philadelphia at Rittenhouse Square for Q3 2022, 2021 and 2019 due
to its sale on August 2, 2022; Hotel Spero for Q3 2022, 2021 and
2019 due to its sale on August 25, 2022 and Hotel Vintage Portland
for Q3 2022, 2021 and 2019 due to its sale on September 14,
2022."Other" includes Newport, RI, Philadelphia, PA and Santa Cruz,
CA.These hotel results for the respective periods may include
information reflecting operational performance prior to the
Company's ownership of the hotels. Any differences are a result of
rounding.The information above has not been audited and is
presented only for comparison purposes.
Pebblebrook Hotel
Trust Hotel Operational Data Schedule of
Same-Property Results ($ in thousands)
(Unaudited)
Three months ended September
30,
Nine months ended September
30,
2022
2021
2019
2022
2021
2019
Same-Property Revenues: Room
$
269,133
$
184,475
$
265,036
$
698,407
$
379,105
$
758,432
Food and beverage
95,177
63,296
92,073
257,207
129,234
277,294
Other
39,613
32,334
36,967
102,095
77,733
102,800
Total hotel revenues
403,923
280,105
394,076
1,057,709
586,072
1,138,526
Same-Property Expenses: Room
$
64,000
$
43,723
$
61,877
$
164,240
$
94,988
$
181,211
Food and beverage
66,364
43,584
63,503
175,814
88,607
189,165
Other direct
9,027
7,346
7,710
24,958
17,112
21,799
General and administrative
31,148
23,264
28,536
84,666
56,600
86,384
Information and telecommunication systems
4,955
3,915
5,166
14,123
11,066
15,739
Sales and marketing
27,514
18,668
28,809
71,374
42,474
84,857
Management fees
11,920
6,364
11,762
32,453
15,103
33,719
Property operations and maintenance
13,209
10,638
12,161
36,692
26,941
35,825
Energy and utilities
11,109
9,155
9,764
29,912
22,744
26,953
Property taxes
18,671
15,823
16,913
56,851
54,120
53,289
Other fixed expenses
15,142
12,544
12,647
40,822
33,858
35,890
Total hotel expenses
273,059
195,024
258,848
731,905
463,613
764,831
Same-Property EBITDA
$
130,864
$
85,081
$
135,228
$
325,804
$
122,459
$
373,695
Same-Property EBITDA Margin
32.4
%
30.4
%
34.3
%
30.8
%
20.9
%
32.8
%
Notes: The schedule of hotel results
for the three months ended September 30 includes information from
all of the hotels the Company owned as of September 30, 2022,
except for 1 Hotel San Francisco for Q3 2022, 2021 and 2019 due to
its closure for renovation during Q3 2021. Additionally, the
schedule excludes Sofitel Philadelphia at Rittenhouse Square for Q3
2022, 2021 and 2019 due to its sale on August 2, 2022; Hotel Spero
for Q3 2022, 2021 and 2019 due to its sale on August 25, 2022 and
Hotel Vintage Portland for Q3 2022, 2021 and 2019 due to its sale
on September 14, 2022.The schedule of hotel results for the nine
months ended September 30 includes information from all of the
hotels the Company owned as of September 30, 2022, except for 1
Hotel San Francisco for Q1, Q2 and Q3 2022, 2021 and 2019 due to
its closure for renovation from Q3 2021 to Q2 2022; the Inn on
Fifth for Q1 2022, 2021 and 2019 due to its acquisition on May 11,
2022, and Newport Harbor Island Resort for Q1 and Q2 2022, 2021 and
2019 due to its acquisition on June 23, 2022. Additionally, the
schedule excludes The Marker San Francisco for Q2 & Q3 2022,
2021 and 2019 due to its sale on June 28, 2022; Sofitel
Philadelphia at Rittenhouse Square for Q3 2022, 2021 and 2019 due
to its sale on August 2, 2022; Hotel Spero for Q3 2022, 2021 and
2019 due to its sale on August 25, 2022 and Hotel Vintage Portland
for Q3 2022, 2021 and 2019 due to its sale on September 14,
2022.These hotel results for the respective periods may include
information reflecting operational performance prior to the
Company's ownership of the hotels. Any differences are a result of
rounding.The information above has not been audited and is
presented only for comparison purposes.
Pebblebrook Hotel
Trust 2022 Same-Property Inclusion Reference Table
Hotels Q1 Q2 Q3 Q4
Hotel Monaco Washington DC X X X X Skamania Lodge X X X X Le
Méridien Delfina Santa Monica X X X X Sofitel Philadelphia at
Rittenhouse Square X X Argonaut Hotel X X X X The Westin San Diego
Gaslamp Quarter X X X X Hotel Monaco Seattle X X X X Mondrian Los
Angeles X X X X W Boston X X X X Hotel Zetta San Francisco X X X X
Hotel Vintage Seattle X X X X Hotel Vintage Portland X X W Los
Angeles - West Beverly Hills X X X X Hotel Zelos San Francisco X X
X X Embassy Suites San Diego Bay - Downtown X X X X The Hotel Zags
X X X X Hotel Zephyr Fisherman's Wharf X X X X Hotel Zeppelin San
Francisco X X X X The Nines, a Luxury Collection Hotel, Portland X
X X X Hotel Colonnade Coral Gables, Autograph Collection X X X X
Hotel Palomar Los Angeles Beverly Hills X X X X Revere Hotel Boston
Common X X X X LaPlaya Beach Resort & Club X X X Hotel Zoe
Fisherman's Wharf X X X X 1 Hotel San Francisco The Marker San
Francisco X Hotel Spero X X Harbor Court Hotel San Francisco X X X
X Chaminade Resort & Spa X X X X Viceroy Santa Monica Hotel X X
X X Le Parc Suite Hotel X X X X Montrose West Hollywood X X X X
Chamberlain West Hollywood Hotel X X X X Hotel Ziggy X X X X The
Westin Copley Place, Boston X X X X The Liberty, a Luxury
Collection Hotel, Boston X X X X Hyatt Regency Boston Harbor X X X
X George Hotel X X X X Viceroy Washington DC X X X X Hotel Zena
Washington DC X X X X Paradise Point Resort & Spa X X X X
Hilton San Diego Gaslamp Quarter X X X X L'Auberge Del Mar X X X X
San Diego Mission Bay Resort X X X X Solamar Hotel X X X X The
Heathman Hotel X X X X Southernmost Beach Resort X X X X The Marker
Key West Harbor Resort X X X X Hotel Chicago Downtown, Autograph
Collection X X X X The Westin Michigan Avenue Chicago X X X X
Jekyll Island Club Resort X X X X Margaritaville Hollywood Beach
Resort X X X X Estancia La Jolla Hotel & Spa X X X X Inn on
Fifth X X X Newport Harbor Island Resort X X
Notes: A property marked with an "X" in a specific
quarter denotes that the same-property operating results of that
property are included in the Same-Property Statistical Data and in
the Schedule of Same-Property Results.The Company's third quarter
Same-Property RevPAR, RevPAR Growth, Total RevPAR, Total RevPAR
Growth, ADR, Occupancy, Revenues, Expenses, EBITDA and EBITDA
Margin include all of the hotels the Company owned as of September
30, 2022, except for 1 Hotel San Francisco for Q3 2022, 2021 and
2019 due to its closure for renovation during Q3 2021.The Company's
estimates and assumptions for Same-Property RevPAR, RevPAR Growth,
Total RevPAR, Total RevPAR Growth, ADR, Occupancy, Revenues,
Expenses, EBITDA and EBITDA Margin for the fourth quarter of 2022
include all of the hotels the Company owned as of September 30,
2022, except for 1 Hotel San Francisco for Q4 2022, 2021 and 2019
due to its closure for renovation during Q4 2021, and LaPlaya Beach
Resort & Club for Q4 2022, 2021 and 2019 due to its closure
following Hurricane Ian during Q4 2022.Operating statistics and
financial results may include periods prior to the Company's
ownership of the hotels.
Pebblebrook Hotel Trust
Historical Operating Data ($ in millions except ADR and
RevPAR data) (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
$272
$269
$248
$261
RevPAR
$189
$234
$231
$191
$211
Hotel Revenues
$332.0
$409.5
$402.8
$350.0
$1,494.3
Hotel EBITDA
$89.2
$145.1
$136.6
$95.2
$466.2
Hotel EBITDA Margin
26.9%
35.4%
33.9%
27.2%
31.2%
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full Year
2021
2021
2021
2021
2021
Occupancy
22%
43%
54%
52%
43%
ADR
$266
$265
$291
$265
$273
RevPAR
$60
$113
$157
$139
$117
Hotel Revenues
$109.7
$205.4
$280.1
$257.3
$852.4
Hotel EBITDA
($3.4)
$46.4
$84.1
$58.2
$185.4
Hotel EBITDA Margin
(3.1%)
22.6%
30.0%
22.6%
21.7%
First Quarter
Second Quarter
Third Quarter
2022
2022
2022
Occupancy
49%
69%
72%
ADR
$311
$324
$323
RevPAR
$151
$223
$234
Hotel Revenues
$264.0
$396.9
$411.5
Hotel EBITDA
$61.5
$138.7
$131.0
Hotel EBITDA Margin
23.3%
34.9%
31.8%
Notes: These historical hotel
operating results include information for all of the hotels the
Company owned as of September 30, 2022, as if they were owned as of
January 1, 2019. 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.These hotel results for the respective periods may include
information reflecting operational performance prior to the
Company's ownership of the hotels. Any differences are a result of
rounding.The information above has not been audited and is
presented only for comparison purposes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221027005902/en/
Raymond D. Martz, Chief Financial Officer,
Pebblebrook Hotel Trust - (240) 507-1330
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