Pebblebrook Hotel Trust (NYSE: PEB):
2022
FINANCIAL RESULTS
- Net loss of ($85.0) million
- Same-Property Total RevPAR(1) increased 65.1% vs. 2021 and
93.0% recovered to 2019
- Same-Property EBITDA(1) $391.0 million, 123.0% above 2021 and
84.5% recovered to 2019
- Adjusted EBITDAre(1) $356.7 million, vs. $99.8 million in
2021
- Adjusted FFO(1) per diluted share $1.69 vs. ($0.23) in
2021
Q4 FINANCIAL
HIGHLIGHTS
- Net loss: ($39.9) million
- Same-Property Total RevPAR(1) up 27.9% vs. 2021 and 93.9%
recovered to 2019
- Same-Property ADR(1), exceeded 2021 by 10.8% and 2019 by
18.4%
- Same-Property EBITDA(1) $65.2 million, 23.3% above 2021 and
73.1% recovered to 2019
- Adjusted EBITDAre(1) $57.4 million, 30% above 2021
- Adjusted FFO(1) per diluted share $0.20 vs. $0.08 in 2021
HOTEL
OPERATING TRENDS
- Leisure demand remains robust, with ADR premiums exceeding the
prior year and pre-pandemic levels
- Business transient and group demand continue to recover, and
more strongly in urban markets; group pace year-over-year is up
significantly for Q1 and all of 2023
- Severe winter storms across the country in late December and
early January increased cancellations, negatively impacting
short-term operating results
- Have not yet seen any slowdown in demand as a result of
macro-economic concerns
PORTFOLIO
UPDATES &
REPOSITIONINGS
- In 2022, acquired the Inn on Fifth Naples and Newport Harbor
Island Resort for $330.0 million and sold 4 urban hotels generating
$260.9 million in proceeds
- Completed $108.4 million of capital investments throughout
2022, including the redevelopment, repositioning and
transformations of Hotel Vitale into the 1 Hotel San Francisco and
Grafton on Sunset into Hotel Ziggy on the Sunset Strip
- Executed a contract to sell The Heathman Hotel Portland for
$45.0 million, which is targeted to close shortly in Q1 2023
Q1 2023 OUTLOOK
- Net loss: ($48.6) to ($43.6) million
- Same-Property RevPAR(1) +15.0 % to +18.0% vs. 2022
- Adjusted EBITDAre(1) $46.5 to $51.5 million vs. $46.5 million
in 2022
- Adjusted FFO(1) per diluted share $0.06 to $0.10, vs. $0.11 in
2022
(1) See tables later in this press release for a description of
Same-Property information and reconciliations from net income
(loss) to non-GAAP financial measures used in the table above and
elsewhere in this press release.
"Our portfolio continued to make
significant strides in 2022 in its recovery from the pandemic. Our
unique lifestyle resorts performed extremely well, with
Same-Property EBITDA far exceeding 2019 despite occupancy still a
long way from being fully recovered. The rate premiums at our
resorts achieved throughout 2022 are continuing into 2023, which is
very encouraging. Our urban market hotels saw an accelerating
recovery throughout the year, led by our hotels in Boston, San
Diego, and Los Angeles. We are seeing further signs of recovery in
Washington, DC, San Francisco, Portland, and Chicago, with our
urban hotels generating healthy year-over-year increases in
revenues and profitability. Despite the concerns with the macro
environment, we remain cautiously optimistic in an improving
operating environment as we kick off 2023. We also made important
progress in our extensive property redevelopment program,
completing the transformations of 1 Hotel San Francisco and Hotel
Ziggy on the Sunset Strip and commencing the conversion and
redevelopment of Hotel Solamar into Margaritaville San Diego
Gaslamp Quarter, as well as several other major redevelopment
projects that we expect will deliver outsized gains in revenue,
EBITDA and valuation in future years." -Jon E. Bortz, Chairman,
President, and Chief Executive Officer of Pebblebrook Hotel
Trust
Fourth Quarter and Year-to-Date Highlights
Fourth Quarter
Year Ended December
31,
Same-Property and Corporate
Highlights
2022
2021
(‘22 vs. ’21 growth)
2019
(‘22 vs.’19 growth)
2022
2021
(‘22 vs.’21 growth)
2019
(‘22 vs.’19 growth)
($ in millions except per share
and RevPAR data)
Net income (loss)
($39.9)
($42.8)
$19.6
($85.0)
($186.4)
$115.7
Same-Property Room Revenues(1)
$197.5
$157.3
$213.7
$895.9
$536.4
$972.1
Same-Property Room Revenues variance
25.6%
(7.6%)
67.0%
(7.8%)
Same-Property Total Revenues(1)
$310.6
$242.8
$330.2
$1,368.3
$828.9
$1,468.7
Same-Property Total Revenues variance
27.9%
(5.9%)
65.1%
(6.8%)
Same-Property Total Expenses(1)
$245.4
$190.0
$241.0
$977.3
$653.6
$1,005.8
Same-Property Total Expenses variance
29.2%
1.8%
49.5%
(2.8%)
Same-Property EBITDA(1)
$65.2
$52.9
$89.2
$391.0
$175.3
$462.9
Same-Property EBITDA variance
23.3%
(26.9%)
123.0%
(15.5%)
Adjusted EBITDAre(1)
$57.4
$44.0
$102.3
$356.7
$99.8
$486.9
Adjusted EBITDAre variance
30.3%
(43.9%)
257.6%
(26.7%)
Adjusted FFO(1)
$25.9
$11.0
$73.4
$221.6
($30.5)
$352.4
Adjusted FFO per diluted share(1)
$0.20
$0.08
$0.56
$1.69
($0.23)
$2.69
Adjusted FFO per diluted share
variance
150.0%
(64.3%)
NM
(37.2%)
2022 Monthly Results
Same-Property Portfolio(2)
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
($ in millions except ADR and
RevPAR data)
Occupancy
34%
50%
62%
68%
67%
73%
74%
71%
73%
73%
59%
48%
ADR
$269
$308
$305
$319
$314
$323
$334
$309
$318
$310
$280
$267
RevPAR
$91
$153
$188
$218
$210
$236
$246
$219
$234
$226
$166
$129
Total Revenues
$57.0
$84.9
$116.2
$128.3
$129.4
$138.1
$142.3
$128.2
$133.4
$131.6
$95.5
$83.5
Total Revenues growth rate (‘22 vs.
‘19)
(44%)
(21%)
(9%)
(3%)
(6%)
(1%)
4%
(2%)
5%
(1%)
(10%)
(8%)
EBITDA
($3.1)
$20.5
$38.8
$46.6
$42.9
$49.3
$50.4
$37.4
$43.0
$41.2
$17.4
$6.7
Hotel EBITDA growth rate (’22 vs. ’19)
(115%)
(29%)
(9%)
1%
(11%)
(6%)
2%
(13%)
1%
(12%)
(38%)
(53%)
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 December 31, 2022, except 1 Hotel San
Francisco (which is excluded from January-December given the
property’s closure for renovation), Inn on Fifth (which is excluded
from January-March given the property’s acquisition on May 11),
Gurney’s Newport Resort & Marina (which is excluded from
January-June given the property’s acquisition on June 23) and
LaPlaya Beach Resort & Club (which is excluded from
October-December, given the property’s closure following Hurricane
Ian). Excludes information for the hotels the Company has sold
during 2022: The Marker San Francisco from April-December (sold on
June 28), Sofitel Philadelphia at Rittenhouse Square from
July-December (sold on August 2), Hotel Spero from July-December
(sold on August 25), and Hotel Vintage Portland from July-December
(sold September 14).
“December performed slightly better than November, despite the
severe winter storms during the holidays, indicating that overall
travel demand continues to recover, despite macro-economic
concerns,” continued Mr. Bortz. “For the fourth quarter, compared
to 2019, Same-Property Total Revenues were off by 5.9%, with ADR up
18.4%. Same-Property EBITDA compared to 2019 was off 26.9%, partly
due to more than $1 million of negative impact from the winter
storms at the end of December. In addition, the closure of LaPlaya
Beach Resort & Club (“LaPlaya”) in Naples, Florida in late
September 2022, due to repairs and remediation from Hurricane Ian,
negatively impacted Same-Property RevPAR by approximately 150 basis
points and Same-Property EBITDA by more than $12.0 million. On the
labor side, our hotel teams have made tremendous gains in hiring
managers and hourly employees to fill open positions across our
portfolio. While this has increased our fixed cost base, it will
allow our properties to operate at higher occupancy levels as hotel
demand continues to recover and strengthen in 2023.”
Update on Impact from Hurricane Ian
The Company continues to complete significant repairs and
rebuilding at the 189-room LaPlaya Beach Resort & Club, and the
property was fully re-energized and reconnected to the permanent
electricity grid in late January. The resort’s Bay Tower partially
reopened in late January 2023, and the Gulf Tower is expected to
partially reopen shortly, barring any issues that remain out of our
control that could delay this reopening. The property’s Beach House
is forecasted to be fully remediated and restored by the fourth
quarter of this year, but delays may further impact this
timeline.
The Company anticipates all operational disruption will be
covered under the Company’s business interruption and property
insurance programs, net of deductibles. A preliminary business
interruption settlement of a minimum of $7.2 million for the fourth
quarter of 2022 with the Company’s insurance providers is
anticipated and is included in the Company’s Q1 2023 outlook.
Pebblebrook expects to record additional business interruption
settlements in 2023 as these are determined and finalized with its
insurance providers.
Capital Investments and Strategic Property
Redevelopments
In the fourth quarter of 2022, the Company completed $40.2
million of capital investments throughout its portfolio. The
Company completed $108.4 million of capital improvements and
projects in 2022.
Since 2018, the Company has invested $567 million across its
portfolio, including approximately $230 million in redevelopment
projects expected to generate healthy increases in market share,
revenues, and cash flow as these properties stabilize, similar to
prior transformations.
The Company expects to invest $145.0 to $155.0 million in
capital improvements during 2023, which includes completing 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, Estancia La Jolla Hotel & Spa, the
four guesthouses at Southernmost Beach Resort, as well as the
completion of the development of a new outdoor venue and 11
additional alternative lodging units at Skamania Lodge.
Update on Strategic Dispositions
The Company completed four hotel dispositions in 2022 totaling
$260.9 million of proceeds. The Company has executed a contract to
sell The Heathman Hotel in Portland, Oregon for $45.0 million. The
sale of The Heathman Hotel is subject to normal closing conditions,
and the Company offers no assurances that this sale will be
completed on these terms or at all. The sale is targeted to be
completed shortly. Since 2020, the Company has sold 11 urban
hotels, including the upcoming anticipated sale of The Heathman
Hotel, and acquired 6 leisure-focused resort properties,
substantially transforming the Company’s portfolio.
Common and Preferred Share Repurchases
Since late October of 2022, the Company has repurchased 5.5
million common shares, or over 4 percent of the Company’s
previously outstanding shares, at an average price of $15.12 per
share, a 51% discount to the midpoint of the Company’s most
recently published estimated Net Asset Value (“NAV”).
During the fourth quarter, in a single unsolicited transaction,
the Company also repurchased 1.0 million shares of its Series H
preferred shares for $16.00 per share, a 36% discount to the $25.00
liquidation value per share.
On February 17, 2023 the Company’s board of trustees authorized
an additional $150 million common share repurchase program. As a
result, the Company currently has a combined $224 million available
under its common share repurchase programs. The Company’s board of
trustees also authorized a $100 million preferred share repurchase
program. This new repurchase program applies to all of the
Company’s outstanding series of preferred equity shares. The
repurchase programs may be suspended or discontinued at any time,
and the Company is not obligated to repurchase any shares.
Balance Sheet and Liquidity
As of December 31, 2022, the Company had $52.3 million of
consolidated cash, cash equivalents and restricted cash, in
addition to $637.4 million of undrawn availability on its senior
unsecured revolving credit facility, for total liquidity of $689.7
million. The Company had $2.4 billion in consolidated debt and
convertible notes at an effective weighted-average interest rate of
3.5 percent. $1.9 billion, or 79% of the Company’s total
outstanding debt and convertible notes, was at an effective
weighted-average fixed interest rate of 2.7 percent, and $0.5
billion, or 21% percent, was at a weighted-average floating rate of
6.3 percent. In January, in a very attractive window in the market,
the Company entered into an additional $400 million in swaps for 2-
and 3-year maturities at 3.2% and 3.0%, respectively, effectively
replacing an equivalent amount maturing in 2023.
Common and Preferred Dividends
On December 15, 2022, the Company declared a quarterly cash
dividend of $0.01 per share on its common shares and 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
- $0.35625 per 5.7% Series H Cumulative Redeemable Preferred
Share.
Update on Curator Hotel & Resort Collection
Curator Hotel & Resort Collection (“Curator”) is a distinct
collection of experientially focused small brands and independent
lifestyle hotels and resorts worldwide founded by Pebblebrook and
several industry-leading independent lifestyle hotel operators. As
of December 31, 2022, Curator had 97 member hotels. In the fourth
quarter of 2022, Curator strengthened its roster with eight new
member hotels. As of December 31, 2022, Curator had 100 master
service agreements with preferred vendor partners, providing
Curator member hotels with preferred pricing, enhanced operating
terms, and early access to curated new technologies.
Q1 2023 Outlook
Based on current trends and assuming no material disruptions to
travel caused by the COVID-19 pandemic or worsening macro-economic
conditions, the Company’s outlook for Q1 2023 is as follows:
Q1 2023 Outlook
Low
High
($ and shares/units in millions,
except per-share and RevPAR data)
Net loss
($48.6)
($43.6)
Adjusted EBITDAre
$46.5
$51.5
Adjusted FFO
$7.3
$12.3
Adjusted FFO per diluted share
$0.06
$0.10
This Q1 2023 Outlook is based, in part, on
the following estimates and assumptions:
Same-Property RevPAR
$168
$172
Same-Property RevPAR variance vs. 2022
15.0%
18.0%
Same-Property RevPAR variance vs. 2019
(8.5%)
(6.1%)
Same-Property EBITDA
$50.7
$55.7
Same-Property EBITDA variance vs. 2022
3.0%
13.1%
Same-Property EBITDA variance vs. 2019
(35.6%)
(29.2%)
The Company’s outlook incorporates the estimated negative impact
of displaced revenues and EBITDA associated with the ongoing
redevelopments and transformations of Solamar Hotel (conversion to
Margaritaville Hotel San Diego Gaslamp Quarter), Hilton San Diego
Gaslamp Quarter, Estancia La Jolla Hotel & Spa, Viceroy Santa
Monica, Jekyll Island Club Resort, and a small renovation project
at The Nines Portland. Same-Property RevPAR growth is expected to
be negatively impacted by these major transformation projects in
the first quarter by 225 to 350 basis points, and Same-Property
EBITDA is expected to be reduced by $4.5 million to $6.5
million.
The first quarter outlook also incorporates an estimated $7.2
million for the preliminary business interruption settlement
relating to lost income from the fourth quarter of 2022. This
amount affects the Company’s Adjusted EBITDAre, Adjusted FFO, and
net loss.
Year End 2022 Earnings Call
The Company will conduct its quarterly analyst and investor
conference call on Wednesday, February 22, 2023, 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;
statements regarding expectations of hotel dispositions; 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, 2022. Unless legally required, the
Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
For further information about the Company’s business and
financial results, please refer to the "Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and
“Risk Factors” sections of the Company’s 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 February 21,
2023. The Company undertakes no duty to update the statements in
this press release to conform the statements to actual results or
changes in the Company’s expectations.
For additional information or to receive press
releases via email, please visit our website at
www.pebblebrookhotels.com
Pebblebrook Hotel Trust Consolidated Balance Sheets
($ in thousands, except share and per-share data)
December 31, 2022 December 31, 2021 ASSETS
Assets: Investment in hotel properties, net
$
5,874,876
$
6,079,333
Hotels held for sale
44,861
-
Cash and cash equivalents
41,040
58,518
Restricted cash
11,229
33,729
Hotel receivables (net of allowance for doubtful accounts of $431
and $1,142, respectively)
45,258
37,045
Prepaid expenses and other assets
116,276
52,565
Total assets
$
6,133,540
$
6,261,190
LIABILITIES AND EQUITY
Liabilities: Unsecured revolving credit facilities
$
-
$
-
Unsecured term loans, net of unamortized deferred financing costs
1,372,057
1,427,256
Convertible senior notes, net of unamortized debt premium and
discount and deferred financing costs
746,326
745,401
Senior unsecured notes, net of unamortized deferred financing costs
49,920
49,838
Mortgage loans, net of unamortized debt discount and deferred
financing costs
218,990
219,393
Accounts payable, accrued expenses and other liabilities
250,518
250,584
Lease liabilities - operating leases
320,402
319,426
Deferred revenues
73,603
69,064
Accrued interest
4,535
4,567
Liabilities related to hotels held for sale
428
-
Distribution payable
12,218
11,756
Total liabilities
3,048,997
3,097,285
Commitments and contingencies
Shareholders' Equity:
Preferred shares of beneficial interest, $0.01 par value
(liquidation preference $715,000 and $740,000 at December 31, 2022
and December 31, 2021, respectively), 100,000,000 shares
authorized; 28,600,000 shares issued and outstanding at December
31, 2022 and 29,600,000 shares issued and outstanding at December
31, 2021
286
296
Common shares of beneficial interest, $0.01 par value, 500,000,000
shares authorized; 126,345,293 shares issued and outstanding at
December 31, 2022 and 130,813,750 shares issued and outstanding at
December 31, 2021
1,263
1,308
Additional paid-in capital
4,182,359
4,268,042
Accumulated other comprehensive income (loss)
35,724
(19,442
)
Distributions in excess of retained earnings
(1,223,117
)
(1,094,023
)
Total shareholders' equity
2,996,515
3,156,181
Non-controlling interests
88,028
7,724
Total equity
3,084,543
3,163,905
Total liabilities and equity
$
6,133,540
$
6,261,190
Pebblebrook Hotel Trust Consolidated Statements of
Operations ($ in thousands, except share and per-share
data) Three months endedDecember 31, Twelve
months endedDecember 31,
2022
2021
2022
2021
(Unaudited) Revenues: Room
$
202,939
$
158,577
$
910,936
$
483,191
Food and beverage
85,474
62,625
346,702
157,848
Other operating
31,193
26,075
134,253
92,005
Total revenues
$
319,606
$
247,277
$
1,391,891
$
733,044
Expenses: Hotel operating expenses: Room
$
58,890
$
41,328
$
225,992
$
127,105
Food and beverage
63,684
43,807
243,543
111,928
Other direct and indirect
106,622
83,478
413,939
257,547
Total hotel operating expenses
229,196
168,613
883,474
496,580
Depreciation and amortization
59,837
58,615
239,583
224,251
Real estate taxes, personal property taxes, property insurance, and
ground rent
28,016
27,445
126,134
111,675
General and administrative
9,512
11,363
39,187
38,166
Transaction costs
99
37
430
100
Impairment and other losses
3,763
-
89,882
14,856
(Gain) loss on sale of hotel properties
-
-
(6,194
)
(64,729
)
Other operating expenses
959
485
4,673
1,936
Total operating expenses
331,382
266,558
1,377,169
822,835
Operating income (loss)
(11,776
)
(19,281
)
14,722
(89,791
)
Interest expense
(29,235
)
(23,568
)
(99,988
)
(96,633
)
Other
406
28
562
113
Income (loss) before income taxes
(40,605
)
(42,821
)
(84,704
)
(186,311
)
Income tax (expense) benefit
738
(1
)
(277
)
(61
)
Net income (loss)
(39,867
)
(42,822
)
(84,981
)
(186,372
)
Net income (loss) attributable to non-controlling interests
831
(429
)
2,190
(1,514
)
Net income (loss) attributable to the Company
(40,698
)
(42,393
)
(87,171
)
(184,858
)
Distributions to preferred shareholders
(11,043
)
(11,344
)
(45,074
)
(42,105
)
Issuance costs of redeemed preferred shares
8,186
(12
)
8,186
(8,055
)
Net income (loss) attributable to common shareholders
$
(43,555
)
$
(53,749
)
$
(124,059
)
$
(235,018
)
Net income (loss) per share available to common
shareholders, basic
$
(0.34
)
$
(0.41
)
$
(0.95
)
$
(1.80
)
Net income (loss) per share available to common shareholders,
diluted
$
(0.34
)
$
(0.41
)
$
(0.95
)
$
(1.80
)
Weighted-average number of common shares, basic
129,116,171
130,813,750
130,453,944
130,804,354
Weighted-average number of common shares, diluted
129,116,171
130,813,750
130,453,944
130,804,354
Pebblebrook Hotel Trust Reconciliation of Net Income
(Loss) to FFO and Adjusted FFO ($ in thousands, except share
and per-share data) (Unaudited) Three months
endedDecember 31, Twelve months endedDecember 31,
2022
2021
2019
2022
2021
2019
Net income (loss)
$
(39,867
)
$
(42,822
)
$
19,572
$
(84,981
)
$
(186,372
)
$
115,725
Adjustments: Real estate depreciation and amortization
59,751
58,512
57,396
239,231
223,813
234,591
Gain on sale of hotel properties
-
-
(2,819
)
(6,194
)
(64,729
)
(2,819
)
Impairment loss
3,514
-
-
89,633
14,856
-
FFO
$
23,398
$
15,690
$
74,149
$
237,689
$
(12,432
)
$
347,497
Distribution to preferred shareholders and unit holders
(12,207
)
(11,344
)
(8,139
)
(48,049
)
(42,105
)
(32,556
)
Issuance costs of redeemed preferred shares
8,186
(12
)
-
8,186
(8,055
)
-
FFO available to common share and unit holders
$
19,377
$
4,334
$
66,010
$
197,826
$
(62,592
)
$
314,941
Transaction costs
99
37
1,103
430
100
8,679
Non-cash ground rent
1,929
1,960
701
7,737
4,729
3,975
Management/franchise contract transition costs
471
136
1,143
817
271
5,927
Interest expense adjustment for acquired liabilities
542
811
213
2,549
2,127
902
Finance lease adjustment
731
719
1,000
2,906
3,037
3,193
Non-cash amortization of acquired intangibles
(529
)
(543
)
(290
)
(2,149
)
(1,593
)
(1,340
)
Non-cash interest expense
-
442
1,379
49
2,063
6,140
One-time operation suspension expenses
-
-
-
-
132
-
Early extinguishment of debt
7,995
-
-
7,995
1,700
1,698
Amortization of share-based compensation expense
3,195
3,087
2,141
11,349
11,432
8,240
Issuance costs of redeemed preferred shares
(8,186
)
12
-
(8,186
)
8,055
-
Estimated hurricane related repairs and cleanup costs
249
-
-
249
-
-
Adjusted FFO available to common share and unit holders
$
25,873
$
10,995
$
73,400
$
221,572
$
(30,539
)
$
352,355
FFO per common share - basic
$
0.15
$
0.03
$
0.50
$
1.51
$
(0.48
)
$
2.41
FFO per common share - diluted
$
0.15
$
0.03
$
0.50
$
1.51
$
(0.48
)
$
2.40
Adjusted FFO per common share - basic
$
0.20
$
0.08
$
0.56
$
1.69
$
(0.23
)
$
2.69
Adjusted FFO per common share - diluted
$
0.20
$
0.08
$
0.56
$
1.69
$
(0.23
)
$
2.69
Weighted-average number of basic common shares and units
129,993,275
131,674,563
130,854,912
131,331,048
131,665,167
130,841,626
Weighted-average number of fully diluted common shares and units
129,993,275
131,674,563
131,039,450
131,331,048
131,665,167
131,088,262
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, issuance costs of
redeemed preferred shares, and estimated hurricane related repairs
and cleanup costs: 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 endedDecember 31, Twelve months
endedDecember 31,
2022
2021
2019
2022
2021
2019
Net income (loss)
$
(39,867
)
$
(42,822
)
$
19,572
$
(84,981
)
$
(186,372
)
$
115,725
Adjustments: Interest expense
29,235
23,568
23,962
99,988
96,633
108,474
Income tax expense (benefit)
(738
)
1
(752
)
277
61
5,172
Depreciation and amortization
59,837
58,615
57,504
239,583
224,251
234,880
EBITDA
$
48,467
$
39,362
$
100,286
$
254,867
$
134,573
$
464,251
Gain on sale of hotel properties
-
-
(2,819
)
(6,194
)
(64,729
)
(2,819
)
Impairment loss
3,514
-
-
89,633
14,856
-
EBITDAre
$
51,981
$
39,362
$
97,467
$
338,306
$
84,700
$
461,432
Transaction costs
99
37
1,103
430
100
8,679
Non-cash ground rent
1,929
1,960
701
7,737
4,729
3,975
Management/franchise contract transition costs
471
136
1,143
817
271
5,927
Non-cash amortization of acquired intangibles
(529
)
(543
)
(290
)
(2,149
)
(1,593
)
(1,340
)
One-time operation suspension expenses
-
-
-
-
132
-
Amortization of share-based compensation expense
3,195
3,087
2,141
11,349
11,432
8,240
Estimated hurricane related repairs and cleanup costs
249
-
-
249
-
-
Adjusted EBITDAre
$
57,395
$
44,039
$
102,265
$
356,739
$
99,771
$
486,913
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, amortization of
share-based compensation expense, and estimated hurricane related
repairs and cleanup costs: 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
Q1 2023 Outlook Net Income (Loss) to FFO and Adjusted FFO ($
in millions, except per share data) (Unaudited)
Three months endingMarch 31, 2023 Low High
Net income (loss)
$
(49
)
$
(44
)
Adjustments: Real estate depreciation and amortization
61
61
(Gain) loss on sale of hotel properties
1
1
Impairment loss
-
-
FFO
$
13
$
18
Distribution to preferred shareholders and unit holders
(12
)
(12
)
FFO available to common share and unit holders
$
1
$
6
Non-cash ground rent
2
2
Amortization of share-based compensation expense
3
3
Other
1
1
Adjusted FFO available to common share and unit holders
$
7
$
12
FFO per common share - diluted
$
0.01
$
0.05
Adjusted FFO per common share - diluted
$
0.06
$
0.10
Weighted-average number of fully diluted common shares and
units
126.9
126.9
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 Q1
2023 Outlook Net Income (Loss) to EBITDA, EBITDAre and Adjusted
EBITDAre ($ in millions) (Unaudited)
Three months endingMarch 31, 2023 Low High
Net income (loss)
$
(49
)
$
(44
)
Adjustments: Interest expense and income tax expense
28
28
Depreciation and amortization
61
61
EBITDA
$
40
$
45
(Gain) loss on sale of hotel properties
1
1
Impairment loss
-
-
EBITDAre
$
41
$
46
Non-cash ground rent
2
2
Amortization of share-based compensation expense
3
3
Other
1
1
Adjusted EBITDAre
$
47
$
52
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
endedDecember 31, Year endedDecember 31,
2022
2021
2019
2022
2021
2019
Same-Property Occupancy
60.1%
53.0%
77.2%
62.6%
43.0%
81.3%
2022 vs. 2021 Increase/(Decrease)
13.3%
45.5%
2022 vs. 2019 Increase/(Decrease)
(22.1%)
(23.0%)
Same-Property ADR
$288.82
$260.57
$243.92
$308.00
$268.23
$257.85
2022 vs. 2021 Increase/(Decrease)
10.8%
14.8%
2022 vs. 2019 Increase/(Decrease)
18.4%
19.4%
Same-Property RevPAR
$173.62
$138.23
$188.25
$192.83
$115.44
$209.68
2022 vs. 2021 Increase/(Decrease)
25.6%
67.0%
2022 vs. 2019 Increase/(Decrease)
(7.8%)
(8.0%)
Same-Property Total RevPAR
$272.96
$213.42
$290.83
$294.49
$178.40
$316.78
2022 vs. 2021 Increase/(Decrease)
27.9%
65.1%
2022 vs. 2019 Increase/(Decrease)
(6.1%)
(7.0%)
Notes: The schedule of hotel
results for the three months ended December 31 includes information
from all of the hotels the Company owned as of December 31, 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.The schedule of hotel results for the year ended
December 31 includes information from all of the hotels the Company
owned as of December 31, 2022, except for 1 Hotel San Francisco for
Q1, Q2, Q3 and Q4 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; Newport
Harbor Island Resort for Q1 and Q2 2022, 2021 and 2019 due to its
acquisition on June 23, 2022; and LaPlaya Beach Resort & Club
for Q4 2022, 2021 and 2019 due to its closure following Hurricane
Ian. Additionally, the schedule excludes The Marker San Francisco
for Q2, Q3 and Q4 2022, 2021 and 2019 due to its sale on June 28,
2022; Sofitel Philadelphia at Rittenhouse Square for Q3 and Q4
2022, 2021 and 2019 due to its sale on August 2, 2022; Hotel Spero
for Q3 and Q4 2022, 2021 and 2019 due to its sale on August 25,
2022 and Hotel Vintage Portland for Q3 and Q4 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
endedDecember 31, Year endedDecember 31, Three months
endedDecember 31, Year endedDecember 31, 2022 vs.
2021 2022 vs. 2021 2022 vs. 2019 2022 vs.
2019 Same-Property RevPAR variance: Southern
Florida/Georgia
(6.1%)
14.9%
24.7%
39.6%
Other
(9.4%)
25.0%
9.6%
16.5%
San Diego
26.3%
56.8%
13.5%
10.0%
Boston
25.8%
95.7%
(5.9%)
(5.1%)
Los Angeles
23.1%
77.5%
(7.6%)
(10.9%)
Chicago
74.2%
176.5%
(16.2%)
(18.3%)
Portland
35.1%
59.0%
(15.0%)
(19.4%)
Washington DC
96.4%
164.6%
(8.4%)
(26.4%)
Seattle
49.2%
125.3%
(38.0%)
(35.2%)
San Francisco
84.0%
199.2%
(51.6%)
(53.3%)
East Coast
13.7%
49.9%
3.1%
6.9%
West Coast
32.5%
76.9%
(14.2%)
(16.8%)
Notes: The schedule of hotel
results for the three months ended December 31 includes information
from all of the hotels the Company owned as of December 31, 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.The schedule of hotel results for the year ended
December 31 includes information from all of the hotels the Company
owned as of December 31, 2022, except for 1 Hotel San Francisco for
Q1, Q2, Q3 and Q4 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; Newport
Harbor Island Resort for Q1 and Q2 2022, 2021 and 2019 due to its
acquisition on June 23, 2022; and LaPlaya Beach Resort & Club
for Q4 2022, 2021 and 2019 due to its closure following Hurricane
Ian. Additionally, the schedule excludes The Marker San Francisco
for Q2, Q3 and Q4 2022, 2021 and 2019 due to its sale on June 28,
2022; Sofitel Philadelphia at Rittenhouse Square for Q3 and Q4
2022, 2021 and 2019 due to its sale on August 2, 2022; Hotel Spero
for Q3 and Q4 2022, 2021 and 2019 due to its sale on August 25,
2022 and Hotel Vintage Portland for Q3 and Q4 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 endedDecember 31, Year endedDecember
31,
2022
2021
2019
2022
2021
2019
Same-Property Revenues: Room
$
197,539
$
157,270
$
213,715
$
895,946
$
536,375
$
972,147
Food and beverage
83,306
60,536
87,517
340,512
189,770
364,812
Other
29,719
25,015
28,947
131,816
102,748
131,746
Total hotel revenues
310,564
242,821
330,179
1,368,274
828,893
1,468,705
Same-Property Expenses: Room
$
57,224
$
41,458
$
55,362
$
221,464
$
136,446
$
236,572
Food and beverage
60,844
42,592
58,259
236,658
131,199
247,424
Other direct
7,581
6,089
6,194
32,540
23,202
27,993
General and administrative
29,920
24,083
27,562
114,586
80,683
113,947
Information and telecommunication systems
5,004
3,995
5,018
19,127
15,062
20,757
Sales and marketing
25,671
17,509
26,971
97,045
59,983
111,828
Management fees
8,255
6,904
10,196
40,709
22,007
43,915
Property operations and maintenance
13,576
11,706
11,647
50,268
38,647
47,472
Energy and utilities
9,453
8,522
8,361
39,365
31,266
35,314
Property taxes
14,382
15,485
18,135
71,233
69,605
71,424
Other fixed expenses
13,453
11,615
13,274
54,275
45,472
49,164
Total hotel expenses
245,363
189,958
240,979
977,270
653,572
1,005,810
Same-Property EBITDA
$
65,201
$
52,863
$
89,200
$
391,004
$
175,321
$
462,895
Same-Property EBITDA Margin
21.0
%
21.8
%
27.0
%
28.6
%
21.2
%
31.5
%
Notes: The schedule of
hotel results for the three months ended December 31 includes
information from all of the hotels the Company owned as of December
31, 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.The schedule of hotel results for
the year ended December 31 includes information from all of the
hotels the Company owned as of December 31, 2022, except for 1
Hotel San Francisco for Q1, Q2, Q3 and Q4 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; Newport Harbor Island Resort for Q1 and Q2 2022, 2021 and
2019 due to its acquisition on June 23, 2022; and LaPlaya Beach
Resort & Club for Q4 2022, 2021 and 2019 due to its closure
following Hurricane Ian. Additionally, the schedule excludes The
Marker San Francisco for Q2, Q3 and Q4 2022, 2021 and 2019 due to
its sale on June 28, 2022; Sofitel Philadelphia at Rittenhouse
Square for Q3 and Q4 2022, 2021 and 2019 due to its sale on August
2, 2022; Hotel Spero for Q3 and Q4 2022, 2021 and 2019 due to its
sale on August 25, 2022 and Hotel Vintage Portland for Q3 and Q4
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 fourth 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 December 31, 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.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
first quarter of 2023 include all of the hotels the Company owned
as of February 21, 2023, except for 1 Hotel San Francisco for Q1
2023, 2022 and 2019 due to its closure for renovation during Q1
2022, LaPlaya Beach Resort & Club for Q1 2023, 2022 and 2019
due to its closure following Hurricane Ian, and The Heathman Hotel
for Q1 2023, 2022 and 2019 due to its pending sale in Q1
2023.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 Fourth Quarter Full Year
2022
2022
2022
2022
2022
Occupancy
49%
69%
72%
59%
62%
ADR
$311
$324
$323
$292
$314
RevPAR
$151
$223
$234
$173
$195
Hotel Revenues
$264.0
$396.9
$411.5
$319.4
$1,391.8
Hotel EBITDA
$61.5
$138.7
$131.0
$62.5
$393.8
Hotel EBITDA Margin
23.3%
34.9%
31.8%
19.6%
28.3%
Notes: These historical hotel
operating results include information for all of the hotels the
Company owned as of December 31, 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.
Pebblebrook Hotel
Trust Historical Hotel Same-Property Hotel EBITDA by
Property (Hotel EBITDA $ in millions, Hotel EBITDA per key $
in thousands) (Unaudited) Hotel EBITDA
2022HotelEBITDAper Key Market /
Hotel
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Unique Lifestyle Resorts
LaPlaya Beach Resort & Club
$5.7
$7.6
$8.7
$10.7
$12.4
$15.7
$16.2
$11.8
$16.5
$17.7
$14.0
$27.4
$24.8
$131.2
Inn on Fifth
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
5.1
4.2
9.7
11.9
100.0
Southernmost Beach Resort
9.0
10.4
10.8
14.1
17.6
19.9
21.1
17.9
19.3
21.4
13.1
24.4
24.2
82.6
The Marker Key West Harbor Resort
N/A
N/A
N/A
N/A
N/A
4.8
5.8
4.6
5.6
6.0
3.1
7.9
7.9
82.3
L'Auberge Del Mar
4.6
5.4
5.6
7.7
8.1
9.9
9.3
9.4
9.5
7.3
2.7
8.5
9.0
74.4
Margaritaville Hollywood Beach Resort
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
17.8
0.4
22.1
24.5
66.4
Newport Harbor Island Resort
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
7.4
4.2
13.9
13.1
51.0
Estancia La Jolla Hotel & Spa
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
8.1
(0.3)
4.6
10.6
50.5
Skamania Lodge
4.4
4.8
5.2
6.0
6.8
7.7
8.1
9.0
9.5
10.3
1.2
7.7
12.3
47.3
Chaminade Resort & Spa
3.3
3.6
3.7
4.3
4.7
5.0
4.8
5.2
5.4
4.4
(1.1)
3.3
7.3
46.8
Paradise Point Resort & Spa
8.3
11.8
13.7
14.8
16.1
16.7
14.7
16.8
17.5
15.3
4.6
14.1
20.5
44.4
Jekyll Island Club Resort
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
5.0
2.7
8.7
7.4
37.0
San Diego Mission Bay Resort
4.4
4.7
5.2
5.5
7.0
7.9
8.3
8.8
8.1
5.5
(4.2)
6.9
9.5
26.6
Unique Lifestyle Resorts Total
$39.7
$48.3
$52.9
$63.1
$72.7
$87.6
$88.3
$83.5
$91.4
$131.3
$44.6
$159.2
$183.0
$59.2
Boston Urban The
Liberty, a Luxury Collection Hotel, Boston
$6.1
$9.6
$13.3
$15.8
$17.2
$18.2
$18.5
$19.0
$21.4
$21.2
$0.3
$10.5
$21.1
$70.8
Revere Hotel Boston Common
3.3
6.1
5.7
9.2
11.7
13.3
12.2
12.6
12.4
11.8
(6.1)
2.8
15.7
44.1
The Westin Copley Place, Boston
21.3
23.5
24.4
25.8
28.7
32.7
33.3
31.5
28.5
32.9
(4.4)
3.0
30.7
38.2
W Boston
3.8
4.4
5.8
6.2
8.1
9.6
9.3
9.2
7.9
8.1
(2.6)
2.4
7.2
30.3
Hyatt Regency Boston Harbor
6.2
6.7
7.3
7.7
9.3
11.1
10.8
10.8
10.7
10.1
(2.2)
1.6
5.6
20.7
Boston Total
$40.7
$50.3
$56.5
$64.7
$75.0
$84.9
$84.1
$83.1
$80.9
$84.1
($15.0)
$20.3
$80.3
$40.9
Miami Urban Hotel
Colonnade Coral Gables, Autograph Collection
$1.9
$2.1
$1.8
$3.1
$3.4
$3.6
$3.9
$4.0
$4.5
$4.1
($0.3)
$3.0
$4.8
$30.6
Miami Total
$1.9
$2.1
$1.8
$3.1
$3.4
$3.6
$3.9
$4.0
$4.5
$4.1
($0.3)
$3.0
$4.8
$30.6
San Diego Urban The
Westin San Diego Gaslamp Quarter
$8.4
$8.2
$9.7
$11.2
$12.7
$14.6
$16.9
$16.0
$14.4
$14.2
($1.3)
$2.2
$12.7
$28.2
Embassy Suites San Diego Bay - Downtown
7.6
8.2
8.8
8.9
9.5
11.3
11.3
11.1
11.7
10.4
(0.2)
4.5
9.1
26.7
Solamar Hotel
5.2
6.3
6.5
6.3
6.5
7.4
7.7
7.3
7.3
7.0
(0.4)
2.1
6.2
26.4
Hilton San Diego Gaslamp Quarter
7.6
8.5
8.8
8.9
9.5
10.5
10.9
11.1
11.6
10.5
(0.4)
0.6
7.1
24.8
San Diego Total
$28.8
$31.2
$33.8
$35.3
$38.2
$43.8
$46.8
$45.5
$45.0
$42.1
($2.3)
$9.4
$35.1
$26.8
Los Angeles Urban Le
Parc Suite Hotel
$4.2
$4.5
$4.7
$5.3
$5.6
$6.1
$7.0
$6.1
$6.1
$5.8
($0.1)
$2.8
$5.5
$35.7
Viceroy Santa Monica Hotel
3.0
5.8
6.9
7.6
8.2
8.4
7.8
7.0
6.6
6.2
(2.9)
1.8
5.4
32.0
Chamberlain West Hollywood Hotel
1.0
3.4
3.8
4.1
4.8
4.8
5.2
4.4
3.1
3.7
(0.2)
1.2
3.5
30.4
Montrose West Hollywood
3.9
4.3
4.2
5.5
5.9
5.9
6.5
5.9
3.9
4.7
0.3
1.0
3.6
27.1
W Los Angeles - West Beverly Hills
5.6
6.9
8.0
8.7
8.9
9.5
12.3
11.5
10.2
8.4
(2.0)
0.7
6.8
22.9
Le Méridien Delfina Santa Monica
5.3
6.8
6.9
8.0
`
9.9
11.7
13.8
13.4
12.7
11.2
(0.8)
2.2
7.0
22.6
Mondrian Los Angeles
7.9
8.9
7.4
8.2
11.0
12.2
12.6
11.8
8.6
7.6
(2.0)
2.1
5.0
21.2
Hotel Palomar Los Angeles Beverly Hills
2.3
2.9
3.9
3.8
4.5
4.2
6.2
4.0
7.4
5.7
(4.2)
(1.2)
3.6
13.6
Hotel Ziggy
1.9
2.2
2.2
2.0
1.5
0.9
2.8
2.8
2.8
2.8
0.0
1.1
1.1
10.2
Los Angeles Total
$35.1
$45.7
$48.0
$53.2
$60.3
$63.7
$74.2
$66.9
$61.4
$56.1
($11.9)
$11.7
$41.5
$23.2
Portland Urban The
Nines, a Luxury Collection Hotel, Portland
$6.2
$8.0
$8.9
$10.8
$12.8
$15.2
$15.6
$15.8
$15.6
$13.0
($0.6)
$3.8
$8.0
$24.2
The Heathman Hotel
1.5
1.6
1.9
2.4
3.0
5.7
4.4
4.3
3.4
4.2
(0.9)
0.4
1.2
7.9
The Hotel Zags
2.7
3.3
3.9
4.5
5.6
6.5
6.7
5.4
3.8
3.3
(1.0)
(0.6)
0.4
2.3
Portland Total
$10.4
$12.9
$14.7
$17.7
$21.4
$27.4
$26.7
$25.5
$22.8
$20.5
($2.5)
$3.6
$9.6
$14.6
Washington DC Urban
George Hotel
$4.2
$4.6
$4.1
$4.1
$4.3
$5.2
$5.7
$6.3
$5.7
$5.3
($0.5)
$0.0
$3.7
$26.6
Hotel Monaco Washington DC
5.5
6.9
7.6
7.9
7.9
8.1
8.1
9.9
8.6
7.9
(1.4)
(0.5)
4.7
25.5
Viceroy Washington DC
3.3
3.6
3.4
3.2
3.2
3.0
3.6
5.8
5.5
4.9
(2.3)
(1.3)
1.1
6.2
Hotel Zena Washington DC
4.0
4.6
3.8
4.3
5.2
5.8
6.1
6.4
5.1
3.8
(2.3)
(2.7)
0.6
3.1
Washington DC Total
$17.0
$19.7
$18.9
$19.5
$20.6
$22.1
$23.5
$28.4
$24.9
$21.9
($6.5)
($4.5)
$10.1
$14.6
Chicago Urban Hotel
Chicago Downtown, Autograph Collection
$5.5
$5.3
$7.3
$8.4
$8.5
$10.4
$12.4
$12.3
$12.6
$12.2
($1.4)
$0.6
$7.4
$20.9
The Westin Michigan Avenue Chicago
14.7
15.8
16.7
16.0
18.0
19.4
17.9
13.1
12.0
9.9
(9.5)
(3.3)
6.5
8.6
Chicago Total
$20.2
$21.1
$24.0
$24.4
$26.5
$29.8
$30.3
$25.4
$24.6
$22.1
($10.9)
($2.7)
$13.9
$12.6
Seattle Urban Hotel
Monaco Seattle
$2.2
$2.9
$3.4
$5.2
$6.2
$6.7
$6.1
$6.1
$6.4
$5.6
($1.7)
($0.6)
$2.1
$11.1
Hotel Vintage Seattle
1.8
2.2
2.4
2.7
2.6
3.5
3.4
3.5
3.5
3.0
(1.5)
(0.6)
1.0
8.0
Seattle Total
$4.0
$5.1
$5.8
$7.9
$8.8
$10.2
$9.5
$9.6
$9.9
$8.6
($3.2)
($1.2)
$3.1
$9.9
San Francisco Urban
Argonaut Hotel
$5.2
$6.5
$8.5
$10.2
$11.8
$13.0
$13.0
$11.7
$12.9
$14.6
($1.5)
$1.5
$7.1
$28.2
Harbor Court Hotel San Francisco
2.7
4.0
3.7
4.9
5.8
6.1
5.6
3.9
4.3
5.6
(0.3)
(1.0)
2.0
15.3
Hotel Zephyr Fisherman's Wharf
7.3
8.7
11.2
12.1
12.1
12.6
16.2
13.1
13.7
16.8
(1.1)
0.5
4.9
13.6
Hotel Zetta San Francisco
N/A
N/A
N/A
2.8
5.4
6.2
5.6
5.5
6.0
6.0
(0.3)
(1.4)
1.4
12.1
Hotel Zoe Fisherman's Wharf
N/A
N/A
5.2
6.6
7.9
8.2
7.8
3.6
7.7
8.9
(1.5)
(1.7)
1.3
5.9
Hotel Zelos San Francisco
1.3
3.0
3.8
4.6
6.2
7.3
5.9
7.2
6.9
8.4
(2.5)
(4.6)
(0.1)
(0.5)
Hotel Zeppelin San Francisco
N/A
2.3
2.7
3.4
4.0
4.0
3.3
6.3
7.5
7.7
(1.2)
(1.6)
(1.2)
(6.1)
1 Hotel San Francisco
4.0
6.0
7.4
7.3
8.6
11.0
10.3
9.8
8.0
7.5
(4.0)
(4.9)
(2.9)
(14.5)
San Francisco Total
$20.5
$30.5
$42.5
$51.9
$61.8
$68.4
$67.7
$61.1
$67.0
$75.5
($12.4)
($13.2)
$12.5
$7.4
Urban Total
$178.6
$218.6
$246.0
$277.7
$316.0
$353.9
$366.7
$349.5
$341.0
$335.0
($65.0)
$26.4
$210.9
$21.8
Total Hotel EBITDA
$218.3
$266.9
$298.9
$340.8
$388.7
$441.5
$455.0
$433.0
$432.4
$466.3
($20.4)
$185.6
$393.9
$30.9
Notes: These historical
Same-Property Hotel EBITDA results include available information
for all of the hotels the Company owned or had an ownership
interest in as of February 21, 2023. 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.The parking garage at Revere Hotel Boston Common
was sold on June 23, 2017. The historical results for Revere Hotel
Boston Common have been adjusted to reflect the estimated impact of
excluding the parking-related income.Border indicates Hotel EBITDA
for the year in which the hotel was acquired by the Company. The
information above has not been audited and is presented only for
comparison purposes. Any differences are a result of rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230221005698/en/
Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel
Trust - (240) 507-1330
Pebblebrook Hotel (NYSE:PEB)
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Pebblebrook Hotel (NYSE:PEB)
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From Jul 2023 to Jul 2024