Pebblebrook Hotel Trust Reports Third Quarter 2023 Results
- Positive take: Q3 financial highlights show strong performance with Same-Property Total RevPAR increasing by 0.2% compared to 2022. Urban markets experienced a significant growth of 4.3% in Same-Property Total RevPAR. Q4 group and transient revenue pace is up 13% compared to Q4 2022, indicating a positive outlook for the company. The launch of Margaritaville Hotel San Diego Gaslamp Quarter and the sale of Hotel Zoe Fisherman’s Wharf for $68.5 million demonstrate successful portfolio updates and strategic dispositions.
- Negative take: The company reported a net loss of $56.5 million in Q3. Tropical Storm Hilary and Hurricane Idalia negatively impacted RevPAR growth by approximately 90 bps and Same-Property Hotel EBITDA by $2.5 million. The labor strikes in the entertainment industry also affected the company's Los Angeles properties.
Q3 FINANCIAL HIGHLIGHTS |
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HOTEL OPERATING TRENDS |
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PORTFOLIO UPDATES & REPOSITIONINGS |
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Q4 2023 OUTLOOK |
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(1) |
See tables later in this press release for a description of Same-Property information and reconciliations from net income (loss) to non-GAAP financial measures used in the table above and elsewhere in this press release. |
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“Our third quarter bottom line results were at the top end of our expectations, even after the negative impact of severe weather events on both coasts and the labor strikes in the entertainment industry that primarily affected our
“During the quarter, we successfully completed the redevelopment and reflagging of the former Solamar Hotel as the Margaritaville Hotel San Diego Gaslamp Quarter. This transformation has created an exceptional lifestyle experience in San Diego’s vibrant Gaslamp district, renowned for its entertainment offerings and close proximity to San Diego’s convention center. We’re very excited about the upside opportunity for this fantastic, unique, like-new urban lifestyle hotel.”
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Third Quarter and Year-to-Date Highlights
Third Quarter |
Nine Months Ended
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Same-Property and Corporate Highlights |
2023 |
2022 |
Variance |
2023 |
2022 |
Variance |
($ in millions except per share and RevPAR data) |
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Net income (loss) |
( |
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( |
( |
( |
NM |
Same-Property Room Revenues(1) |
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( |
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Same-Property Total Revenues(1) |
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Same Property Total Expenses(1) |
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Same Property EBITDA(1) |
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( |
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( |
Adjusted EBITDAre(1) |
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( |
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( |
Adjusted FFO(1) |
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( |
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( |
Adjusted FFO per diluted share(1) |
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( |
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( |
2023 Monthly Results |
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Same-Property Portfolio Highlights(2) |
Jan |
Feb |
Mar |
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May |
Jun |
Jul |
Aug |
Sep |
($ in millions except per share and RevPAR data) |
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Occupancy |
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ADR |
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RevPAR |
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Total Revenues |
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Total Revenues Growth Rate ('23 vs. '22) |
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( |
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( |
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Hotel EBITDA |
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NM = Not Meaningful
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(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. |
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(2) |
Includes information for all the hotels the Company owned as of September 30, 2023, except for the following: |
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“Despite the challenges posed by two significant storm events that resulted in booking interruptions and cancellations, we are pleased to have generated a
Update on Impact from Hurricane Ian
The Company continues to make significant progress restoring and reopening the 189-room LaPlaya Beach Resort & Club (“LaPlaya”) in
The Company anticipates that all operational disruption will be covered under its business interruption and property insurance programs, net of deductibles. A preliminary business interruption settlement of
Capital Investments and Strategic Property Redevelopments
During the third quarter, the Company completed
The renovation of the four guesthouses (50 rooms/suites) at Southernmost Beach Resort in
For 2023, the Company continues to expect to invest a total of
Update on Strategic Dispositions
The Company recently executed a contract to sell the 221-room Hotel Zoe Fisherman’s Wharf (“Hotel Zoe”) in
Net proceeds from the Company’s dispositions are being used for general corporate purposes, including reducing the Company’s debt, increasing the Company’s cash position, and repurchasing common or preferred shares to further strengthen the Company’s balance sheet and enhance shareholder value.
Common Share Repurchases
The Company did not complete any common share repurchases in Q3 2023 since no property sales were completed in the third quarter. On a cumulative basis since October 2022, the Company has repurchased over 11 million common shares, or approximately
Balance Sheet and Liquidity
As of September 30, 2023, the Company had
The Company's
Common and Preferred Dividends
On September 15, 2023, the Company declared a quarterly cash dividend of
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per$0.39 8446.375% Series E Cumulative Redeemable Preferred Share; -
per$0.39 3756.3% Series F Cumulative Redeemable Preferred Share; -
per$0.39 8446.375% Series G Cumulative Redeemable Preferred Share; and -
per$0.35 6255.7% Series H Cumulative Redeemable Preferred Share.
Update on Curator Hotel & Resort Collection
Curator Hotel & Resort Collection (“Curator”) is a curated collection of experientially focused small brands and independent lifestyle hotels and resorts worldwide founded by Pebblebrook and several industry-leading independent lifestyle hotel operators. Curator has 99 member hotels and 109 master service agreements with preferred vendor partners. These agreements provide Curator member hotels with preferred pricing, enhanced operating terms, and early access to curated new technologies. Curator's mission is to help independent lifestyle hotels and resorts achieve their full potential by providing them with the resources and support they need to compete with larger brands and operators while remaining independent.
Q4 2023 Outlook
Based on current trends and assuming no material disruptions to travel caused by pandemics, federal government shutdowns, or worsening macro-economic conditions, the Company’s outlook for Q4 2023 is as follows:
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Q4 2023 Outlook |
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Low |
High |
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($ and shares/units in millions, except per share and RevPAR data) |
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Net income (loss) |
( |
( |
Adjusted EBITDAre |
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Adjusted FFO |
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Adjusted FFO per diluted share |
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This Q4 2023 Outlook is based, in part, on the following estimates and assumptions:
Same-Property RevPAR |
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Same-Property RevPAR variance vs. 2022 |
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Same-Property Hotel EBITDA |
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Same-Property Hotel EBITDA variance vs. 2022 |
( |
( |
The fourth quarter outlook does not assume any business interruption income related to LaPlaya. Based on the above Q4 2023 outlook, the implied full-year 2023 outlook is as follows:
Full Year 2023 Outlook |
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Low |
High |
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($ and shares/units in millions, except per share and RevPAR data) |
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Net income (loss) |
( |
( |
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Adjusted EBITDAre |
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Adjusted FFO |
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Adjusted FFO per diluted share |
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This Full Year 2023 Outlook is based, in part, on the following estimates and assumptions:
Same-Property RevPAR |
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Same-Property RevPAR variance vs. 2022 |
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Same-Property Hotel EBITDA |
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Same-Property Hotel EBITDA variance vs. 2022 |
( |
( |
Third Quarter 2023 Earnings Call
The Company will conduct its quarterly analyst and investor conference call on Friday, October 27, 2023, at 9:00 AM ET. Please dial (877) 407-3982 approximately ten minutes before the call begins to participate. A live webcast of the conference call will also 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
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 use of proceeds; 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
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
All information in this press release is as of October 26, 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) | |||||||
September 30, 2023 | December 31, 2022 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Assets: | |||||||
Investment in hotel properties, net | $ |
5,553,122 |
$ |
5,874,876 |
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Hotels held for sale |
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65,453 |
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44,861 |
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Cash and cash equivalents |
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182,665 |
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41,040 |
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Restricted cash |
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8,946 |
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11,229 |
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Hotel receivables (net of allowance for doubtful accounts of |
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56,842 |
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45,258 |
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Prepaid expenses and other assets |
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131,800 |
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116,276 |
|
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Total assets | $ |
5,998,828 |
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$ |
6,133,540 |
|
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LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Unsecured revolving credit facilities | $ |
- |
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$ |
- |
|
|
Unsecured term loans, net of unamortized deferred financing costs |
|
1,374,267 |
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1,372,057 |
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Convertible senior notes, net of unamortized debt premium and discount and deferred financing costs |
|
747,028 |
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746,326 |
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Senior unsecured notes, net of unamortized deferred financing costs |
|
49,981 |
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49,920 |
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Mortgage loans, net of unamortized debt discount and deferred financing costs |
|
195,669 |
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218,990 |
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Accounts payable, accrued expenses and other liabilities |
|
272,745 |
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250,518 |
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Lease liabilities - operating leases |
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320,571 |
|
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320,402 |
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Deferred revenues |
|
74,576 |
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73,603 |
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Accrued interest |
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10,720 |
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4,535 |
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Liabilities related to hotels held for sale |
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1,647 |
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428 |
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Distribution payable |
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12,156 |
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12,218 |
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Total liabilities |
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3,059,360 |
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3,048,997 |
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Commitments and contingencies | |||||||
Shareholders' Equity: | |||||||
Preferred shares of beneficial interest, |
|||||||
September 30, 2023 and December 31, 2022), 100,000,000 shares authorized; 28,600,000 | |||||||
shares issued and outstanding at September 30, 2023 and December 31, 2022 |
|
286 |
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286 |
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Common shares of beneficial interest, |
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120,057,744 shares issued and outstanding at September 30, 2023 and 126,345,293 shares | |||||||
issued and outstanding at December 31, 2022 |
|
1,201 |
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1,263 |
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Additional paid-in capital |
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4,097,130 |
|
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4,182,359 |
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Accumulated other comprehensive income (loss) |
|
45,834 |
|
|
35,724 |
|
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Distributions in excess of retained earnings |
|
(1,295,089 |
) |
|
(1,223,117 |
) |
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Total shareholders' equity |
|
2,849,362 |
|
|
2,996,515 |
|
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Non-controlling interests |
|
90,106 |
|
|
88,028 |
|
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Total equity |
|
2,939,468 |
|
|
3,084,543 |
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Total liabilities and equity | $ |
5,998,828 |
|
$ |
6,133,540 |
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Pebblebrook Hotel Trust | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
($ in thousands, except share and per-share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended
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Nine months ended
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|||||||||||||
|
2023 |
|
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2022 |
|
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2023 |
|
|
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2022 |
|
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Revenues: | |||||||||||||||
Room | $ |
259,397 |
|
$ |
277,971 |
|
$ |
706,705 |
|
$ |
707,997 |
|
|||
Food and beverage |
|
91,661 |
|
|
98,080 |
|
|
261,172 |
|
|
261,228 |
|
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Other operating |
|
44,741 |
|
|
40,642 |
|
|
117,984 |
|
|
103,060 |
|
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Total revenues | $ |
395,799 |
|
$ |
416,693 |
|
$ |
1,085,861 |
|
$ |
1,072,285 |
|
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Expenses: | |||||||||||||||
Hotel operating expenses: | |||||||||||||||
Room | $ |
68,065 |
|
$ |
66,637 |
|
$ |
189,179 |
|
$ |
167,102 |
|
|||
Food and beverage |
|
69,091 |
|
|
69,296 |
|
|
196,748 |
|
|
179,859 |
|
|||
Other direct and indirect |
|
112,596 |
|
|
115,589 |
|
|
324,164 |
|
|
307,317 |
|
|||
Total hotel operating expenses |
|
249,752 |
|
|
251,522 |
|
|
710,091 |
|
|
654,278 |
|
|||
Depreciation and amortization |
|
63,272 |
|
|
60,372 |
|
|
179,598 |
|
|
179,746 |
|
|||
Real estate taxes, personal property taxes, property insurance, and ground rent |
|
32,905 |
|
|
34,641 |
|
|
91,380 |
|
|
98,118 |
|
|||
General and administrative |
|
11,549 |
|
|
10,281 |
|
|
32,739 |
|
|
29,675 |
|
|||
Impairment |
|
71,416 |
|
|
12,865 |
|
|
71,416 |
|
|
86,119 |
|
|||
(Gain) loss on sale of hotel properties |
|
- |
|
|
(6,194 |
) |
|
(30,219 |
) |
|
(6,194 |
) |
|||
Business interruption insurance income |
|
(10,881 |
) |
|
- |
|
|
(32,985 |
) |
|
- |
|
|||
Other operating expenses |
|
3,829 |
|
|
989 |
|
|
9,876 |
|
|
4,045 |
|
|||
Total operating expenses |
|
421,842 |
|
|
364,476 |
|
|
1,031,896 |
|
|
1,045,787 |
|
|||
Operating income (loss) |
|
(26,043 |
) |
|
52,217 |
|
|
53,965 |
|
|
26,498 |
|
|||
Interest expense |
|
(31,022 |
) |
|
(25,020 |
) |
|
(87,996 |
) |
|
(70,753 |
) |
|||
Other |
|
1,403 |
|
|
123 |
|
|
2,538 |
|
|
156 |
|
|||
Income (loss) before income taxes |
|
(55,662 |
) |
|
27,320 |
|
|
(31,493 |
) |
|
(44,099 |
) |
|||
Income tax (expense) benefit |
|
(822 |
) |
|
(1,015 |
) |
|
(853 |
) |
|
(1,015 |
) |
|||
Net income (loss) |
|
(56,484 |
) |
|
26,305 |
|
|
(32,346 |
) |
|
(45,114 |
) |
|||
Net income (loss) attributable to non-controlling interests |
|
658 |
|
|
1,237 |
|
|
2,999 |
|
|
1,359 |
|
|||
Net income (loss) attributable to the Company |
|
(57,142 |
) |
|
25,068 |
|
|
(35,345 |
) |
|
(46,473 |
) |
|||
Distributions to preferred shareholders |
|
(10,988 |
) |
|
(11,344 |
) |
|
(32,963 |
) |
|
(34,031 |
) |
|||
Net income (loss) attributable to common shareholders | $ |
(68,130 |
) |
$ |
13,724 |
|
$ |
(68,308 |
) |
$ |
(80,504 |
) |
|||
Net income (loss) per share available to common shareholders, basic | $ |
(0.57 |
) |
$ |
0.10 |
|
$ |
(0.56 |
) |
$ |
(0.62 |
) |
|||
Net income (loss) per share available to common shareholders, diluted | $ |
(0.57 |
) |
$ |
0.10 |
|
$ |
(0.56 |
) |
$ |
(0.62 |
) |
|||
Weighted-average number of common shares, basic |
|
120,057,744 |
|
|
130,905,132 |
|
|
122,394,293 |
|
|
130,904,772 |
|
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Weighted-average number of common shares, diluted |
|
120,057,744 |
|
|
131,149,783 |
|
|
122,394,293 |
|
|
130,904,772 |
|
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Considerations Regarding Non-GAAP Financial Measures
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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. 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 FFO and Adjusted EBITDAre 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 and Adjusted EBITDAre, 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 and Adjusted EBITDAre: - 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 and Adjusted EBITDAre 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 and Adjusted EBITDAre 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 and Adjusted EBITDAre 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 and Adjusted EBITDAre 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 hurricane-related repairs 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. - One-time operation suspension expenses, amortization of share-based compensation expense, and hurricane-related 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 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 and Adjusted EBITDAre 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. 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 Net Income (Loss) to FFO and Adjusted FFO | |||||||||||||||
($ in thousands, except share and per-share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended
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Nine months ended
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|||||||||||||
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net income (loss) | $ |
(56,484 |
) |
$ |
26,305 |
|
$ |
(32,346 |
) |
$ |
(45,114 |
) |
|||
Adjustments: | |||||||||||||||
Real estate depreciation and amortization |
|
63,186 |
|
|
60,285 |
|
|
179,341 |
|
|
179,480 |
|
|||
Gain on sale of hotel properties |
|
- |
|
|
(6,194 |
) |
|
(30,219 |
) |
|
(6,194 |
) |
|||
Impairment loss |
|
71,416 |
|
|
12,865 |
|
|
71,416 |
|
|
86,119 |
|
|||
FFO | $ |
78,118 |
|
$ |
93,261 |
|
$ |
188,192 |
|
$ |
214,291 |
|
|||
Distribution to preferred shareholders and unit holders |
|
(12,152 |
) |
|
(12,507 |
) |
|
(36,455 |
) |
|
(35,842 |
) |
|||
FFO available to common share and unit holders | $ |
65,966 |
|
$ |
80,754 |
|
$ |
151,737 |
|
$ |
178,449 |
|
|||
Transaction costs |
|
273 |
|
|
179 |
|
|
583 |
|
|
331 |
|
|||
Non-cash ground rent |
|
1,901 |
|
|
1,933 |
|
|
5,712 |
|
|
5,808 |
|
|||
Management/franchise contract transition costs |
|
(1 |
) |
|
(43 |
) |
|
210 |
|
|
346 |
|
|||
Interest expense adjustment for acquired liabilities |
|
403 |
|
|
521 |
|
|
1,487 |
|
|
2,007 |
|
|||
Finance lease adjustment |
|
740 |
|
|
728 |
|
|
2,210 |
|
|
2,175 |
|
|||
Non-cash amortization of acquired intangibles |
|
(482 |
) |
|
(536 |
) |
|
(5,013 |
) |
|
(1,620 |
) |
|||
Non-cash interest expense |
|
- |
|
|
- |
|
|
- |
|
|
49 |
|
|||
Early extinguishment of debt |
|
1,004 |
|
|
- |
|
|
1,004 |
|
|
- |
|
|||
Amortization of share-based compensation expense |
|
3,321 |
|
|
3,180 |
|
|
9,232 |
|
|
8,154 |
|
|||
Hurricane-related costs |
|
991 |
|
|
- |
|
|
5,058 |
|
|
- |
|
|||
Adjusted FFO available to common share and unit holders | $ |
74,116 |
|
$ |
86,716 |
|
$ |
172,220 |
|
$ |
195,699 |
|
|||
FFO per common share - basic | $ |
0.54 |
|
$ |
0.61 |
|
$ |
1.23 |
|
$ |
1.35 |
|
|||
FFO per common share - diluted | $ |
0.54 |
|
$ |
0.61 |
|
$ |
1.23 |
|
$ |
1.35 |
|
|||
Adjusted FFO per common share - basic | $ |
0.61 |
|
$ |
0.66 |
|
$ |
1.40 |
|
$ |
1.49 |
|
|||
Adjusted FFO per common share - diluted | $ |
0.61 |
|
$ |
0.66 |
|
$ |
1.39 |
|
$ |
1.49 |
|
|||
Weighted-average number of basic common shares and units |
|
121,066,124 |
|
|
131,782,236 |
|
|
123,402,673 |
|
|
131,781,876 |
|
|||
Weighted-average number of fully diluted common shares and units |
|
121,240,662 |
|
|
132,026,887 |
|
|
123,719,181 |
|
|
131,781,876 |
|
|||
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding our use of non-GAAP financial measures. Any differences are a result of rounding. |
Pebblebrook Hotel Trust | |||||||||||||||
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre | |||||||||||||||
($ in thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended
|
|
Nine months ended
|
|||||||||||||
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net income (loss) | $ |
(56,484 |
) |
$ |
26,305 |
|
$ |
(32,346 |
) |
$ |
(45,114 |
) |
|||
Adjustments: | |||||||||||||||
Interest expense |
|
31,022 |
|
|
25,020 |
|
|
87,996 |
|
|
70,753 |
|
|||
Income tax expense (benefit) |
|
822 |
|
|
1,015 |
|
|
853 |
|
|
1,015 |
|
|||
Depreciation and amortization |
|
63,272 |
|
|
60,372 |
|
|
179,598 |
|
|
179,746 |
|
|||
EBITDA | $ |
38,632 |
|
$ |
112,712 |
|
$ |
236,101 |
|
$ |
206,400 |
|
|||
Gain on sale of hotel properties |
|
- |
|
|
(6,194 |
) |
|
(30,219 |
) |
|
(6,194 |
) |
|||
Impairment loss |
|
71,416 |
|
|
12,865 |
|
|
71,416 |
|
|
86,119 |
|
|||
EBITDAre | $ |
110,048 |
|
$ |
119,383 |
|
$ |
277,298 |
|
$ |
286,325 |
|
|||
Transaction costs |
|
273 |
|
|
179 |
|
|
583 |
|
|
331 |
|
|||
Non-cash ground rent |
|
1,901 |
|
|
1,933 |
|
|
5,712 |
|
|
5,808 |
|
|||
Management/franchise contract transition costs |
|
(1 |
) |
|
(43 |
) |
|
210 |
|
|
346 |
|
|||
Non-cash amortization of acquired intangibles |
|
(482 |
) |
|
(536 |
) |
|
(5,013 |
) |
|
(1,620 |
) |
|||
Amortization of share-based compensation expense |
|
3,321 |
|
|
3,180 |
|
|
9,232 |
|
|
8,154 |
|
|||
Hurricane-related costs |
|
991 |
|
|
- |
|
|
5,058 |
|
|
- |
|
|||
Adjusted EBITDAre | $ |
116,051 |
|
$ |
124,096 |
|
$ |
293,080 |
|
$ |
299,344 |
|
|||
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding our use of non-GAAP financial measures. Any differences are a result of rounding. |
Pebblebrook Hotel Trust | |||||||||||||||
Reconciliation of Q4 2023 and Full Year 2023 Outlook Net Income (Loss) to FFO and Adjusted FFO | |||||||||||||||
(in millions, except per share data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ending December 31, 2023 |
Year ending December 31, 2023 |
||||||||||||||
Low | High | Low | High | ||||||||||||
Net income (loss) | $ |
(48 |
) |
$ |
(42 |
) |
$ |
(81 |
) |
$ |
(75 |
) |
|||
Adjustments: | |||||||||||||||
Real estate depreciation and amortization |
|
65 |
|
|
65 |
|
|
244 |
|
|
244 |
|
|||
(Gain) loss on sale of hotel properties |
|
- |
|
|
- |
|
|
(30 |
) |
|
(30 |
) |
|||
Impairment loss |
|
- |
|
|
- |
|
|
71 |
|
|
71 |
|
|||
FFO | $ |
17 |
|
$ |
23 |
|
$ |
204 |
|
$ |
210 |
|
|||
Distribution to preferred shareholders and unit holders |
|
(12 |
) |
|
(12 |
) |
|
(49 |
) |
|
(49 |
) |
|||
FFO available to common share and unit holders | $ |
5 |
|
$ |
11 |
|
$ |
155 |
|
$ |
161 |
|
|||
Non-cash ground rent |
|
2 |
|
|
2 |
|
|
8 |
|
|
8 |
|
|||
Amortization of share-based compensation expense |
|
3 |
|
|
3 |
|
|
13 |
|
|
13 |
|
|||
Other |
|
1 |
|
|
1 |
|
|
7 |
|
|
7 |
|
|||
Adjusted FFO available to common share and unit holders | $ |
11 |
|
$ |
17 |
|
$ |
183 |
|
$ |
189 |
|
|||
FFO per common share - diluted | $ |
0.04 |
|
$ |
0.09 |
|
$ |
1.26 |
|
$ |
1.31 |
|
|||
Adjusted FFO per common share - diluted | $ |
0.09 |
|
$ |
0.14 |
|
$ |
1.49 |
|
$ |
1.54 |
|
|||
Weighted-average number of fully diluted common shares and units |
|
121.1 |
|
|
121.1 |
|
|
123.0 |
|
|
123.0 |
|
|||
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding our use of non-GAAP financial measures. Any differences are a result of rounding. |
Pebblebrook Hotel Trust | |||||||||||||||
Reconciliation of Q4 2023 and Full Year 2023 Outlook Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre | |||||||||||||||
($ in millions) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ending December 31, 2023 |
Year ending December 31, 2023 |
||||||||||||||
Low | High | Low | High | ||||||||||||
Net income (loss) | $ |
(48 |
) |
$ |
(42 |
) |
$ |
(81 |
) |
$ |
(75 |
) |
|||
Adjustments: | |||||||||||||||
Interest expense and income tax expense |
|
29 |
|
|
29 |
|
|
118 |
|
|
118 |
|
|||
Depreciation and amortization |
|
65 |
|
|
65 |
|
|
244 |
|
|
244 |
|
|||
EBITDA | $ |
46 |
|
$ |
52 |
|
$ |
281 |
|
$ |
287 |
|
|||
(Gain) loss on sale of hotel properties |
|
- |
|
|
- |
|
|
(30 |
) |
|
(30 |
) |
|||
Impairment loss |
|
- |
|
|
- |
|
|
71 |
|
|
71 |
|
|||
EBITDAre | $ |
46 |
|
$ |
52 |
|
$ |
322 |
|
$ |
328 |
|
|||
Non-cash ground rent |
|
2 |
|
|
2 |
|
|
8 |
|
|
8 |
|
|||
Amortization of share-based compensation expense |
|
3 |
|
|
3 |
|
|
13 |
|
|
13 |
|
|||
Other |
|
- |
|
|
- |
|
|
1 |
|
|
1 |
|
|||
Adjusted EBITDAre | $ |
51 |
|
$ |
57 |
|
$ |
344 |
|
$ |
350 |
|
|||
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding our use of non-GAAP financial measures. Any differences are a result of rounding. |
Pebblebrook Hotel Trust | |||||||||||||||
Same-Property Statistical Data | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended
|
|
Nine months ended
|
|||||||||||||
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Same-Property Occupancy |
|
75.4 |
% |
|
72.9 |
% |
|
68.9 |
% |
|
63.8 |
% |
|||
2023 vs. 2022 Increase/(Decrease) |
|
3.4 |
% |
|
7.9 |
% |
|||||||||
Same-Property ADR | $ |
310.67 |
|
$ |
324.78 |
|
$ |
305.21 |
|
$ |
316.82 |
|
|||
2023 vs. 2022 Increase/(Decrease) |
|
(4.3 |
%) |
|
(3.7 |
%) |
|||||||||
Same-Property RevPAR | $ |
234.09 |
|
$ |
236.69 |
|
$ |
210.16 |
|
$ |
202.15 |
|
|||
2023 vs. 2022 Increase/(Decrease) |
|
(1.1 |
%) |
|
4.0 |
% |
|||||||||
Same-Property Total RevPAR | $ |
353.85 |
|
$ |
353.06 |
|
$ |
321.51 |
|
$ |
303.41 |
|
|||
2023 vs. 2022 Increase/(Decrease) |
|
0.2 |
% |
|
6.0 |
% |
|||||||||
Notes: | |||||||||||||||
For the three months ended September 30, 2023 and 2022, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2023, except for the following: • LaPlaya Beach Resort & Club is excluded due to its closure following Hurricane Ian. For the nine months ended September 30, 2023 and 2022, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2023, except for the following: • LaPlaya Beach Resort & Club is excluded from all months due to its closure following Hurricane Ian. • 1 Hotel San Francisco is excluded from Jan-Jun due to its closure for redevelopment. • Hotel Monaco Seattle is included in Jan-Mar only due to its sale earlier this year. • Hotel Vintage Seattle is included in Jan-Mar only due to its sale earlier this year. • Westin Michigan Avenue Retail Parcel is included in Jan-Mar only due to its sale earlier this year. 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 ended
|
|
Nine months ended
|
|||
2023 |
|
2023 |
|||
Same-Property RevPAR variance to 2022: | |||||
21.4 |
% |
39.4 |
% |
||
13.1 |
% |
24.9 |
% |
||
5.0 |
% |
9.2 |
% |
||
2.5 |
% |
3.3 |
% |
||
(5.3 |
%) |
11.1 |
% |
||
(7.2 |
%) |
(1.8 |
%) |
||
Portland | (8.9 |
%) |
4.3 |
% |
|
(9.1 |
%) |
(10.0 |
%) |
||
Other | (18.8 |
%) |
(15.0 |
%) |
|
Urban | 3.0 |
% |
10.0 |
% |
|
Resorts | (10.2 |
%) |
(7.7 |
%) |
|
Notes: | |||||
For the three months ended September 30, 2023, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2023, except for the following: • LaPlaya Beach Resort & Club is excluded due to its closure following Hurricane Ian. For the nine months ended September 30, 2023, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2023, except for the following: • LaPlaya Beach Resort & Club is excluded from all months due to its closure following Hurricane Ian. • 1 Hotel San Francisco is excluded from Jan-Jun due to its closure for redevelopment. • Hotel Monaco Seattle is included in Jan-Mar only due to its sale earlier this year. • Hotel Vintage Seattle is included in Jan-Mar only due to its sale earlier this year. "Other" includes 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
|
|
Nine months ended
|
|||||||||||||
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Same-Property Revenues: | |||||||||||||||
Room | $ |
257,421 |
|
$ |
260,104 |
|
$ |
683,956 |
|
$ |
657,610 |
|
|||
Food and beverage |
|
89,690 |
|
|
92,261 |
|
|
251,664 |
|
|
238,557 |
|
|||
Other |
|
42,009 |
|
|
35,622 |
|
|
110,719 |
|
|
90,850 |
|
|||
Total hotel revenues |
|
389,120 |
|
|
387,987 |
|
|
1,046,339 |
|
|
987,017 |
|
|||
Same-Property Expenses: | |||||||||||||||
Room | $ |
67,400 |
|
$ |
62,328 |
|
$ |
182,534 |
|
$ |
156,010 |
|
|||
Food and beverage |
|
67,128 |
|
|
64,754 |
|
|
186,106 |
|
|
165,096 |
|
|||
Other direct |
|
8,902 |
|
|
8,209 |
|
|
24,563 |
|
|
22,030 |
|
|||
General and administrative |
|
30,280 |
|
|
30,016 |
|
|
86,530 |
|
|
78,988 |
|
|||
Information and telecommunication systems |
|
5,249 |
|
|
4,777 |
|
|
15,247 |
|
|
13,089 |
|
|||
Sales and marketing |
|
27,388 |
|
|
26,672 |
|
|
78,038 |
|
|
66,697 |
|
|||
Management fees |
|
11,370 |
|
|
11,342 |
|
|
30,167 |
|
|
30,181 |
|
|||
Property operations and maintenance |
|
13,729 |
|
|
12,773 |
|
|
39,564 |
|
|
34,942 |
|
|||
Energy and utilities |
|
11,696 |
|
|
10,566 |
|
|
31,785 |
|
|
28,258 |
|
|||
Property taxes |
|
15,176 |
|
|
18,559 |
|
|
44,644 |
|
|
54,675 |
|
|||
Other fixed expenses |
|
16,453 |
|
|
14,970 |
|
|
42,838 |
|
|
39,584 |
|
|||
Total hotel expenses |
|
274,771 |
|
|
264,966 |
|
|
762,016 |
|
|
689,550 |
|
|||
Same-Property EBITDA | $ |
114,349 |
|
$ |
123,021 |
|
$ |
284,323 |
|
$ |
297,467 |
|
|||
Same-Property EBITDA Margin |
|
29.4 |
% |
|
31.7 |
% |
|
27.2 |
% |
|
30.1 |
% |
Notes: | ||||||||||
For the three months ended September 30, 2023 and 2022, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2023, except for the following: • LaPlaya Beach Resort & Club is excluded due to its closure following Hurricane Ian. For the nine months ended September 30, 2023 and 2022, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2023, except for the following: • LaPlaya Beach Resort & Club is excluded from all months due to its closure following Hurricane Ian. • 1 Hotel San Francisco is excluded from Jan-Jun due to its closure for redevelopment. • Hotel Monaco Seattle is included in Jan-Mar only due to its sale earlier this year. • Hotel Vintage Seattle is included in Jan-Mar only due to its sale earlier this year. • Westin Michigan Avenue Retail Parcel is included in Jan-Mar only due to its sale earlier this year. 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 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 |
|
74 |
% |
|
86 |
% |
|
86 |
% |
|
77 |
% |
|
81 |
% |
||||
ADR | $ |
251 |
|
$ |
274 |
|
$ |
272 |
|
$ |
250 |
|
$ |
262 |
|
||||
RevPAR | $ |
186 |
|
$ |
236 |
|
$ |
234 |
|
$ |
192 |
|
$ |
212 |
|
||||
Hotel Revenues | $ |
300.9 |
|
$ |
382.7 |
|
$ |
380.5 |
|
$ |
325.4 |
|
$ |
1,389.4 |
|
||||
Hotel EBITDA | $ |
76.7 |
|
$ |
135.7 |
|
$ |
130.1 |
|
$ |
87.3 |
|
$ |
429.8 |
|
||||
Hotel EBITDA Margin |
|
25.5 |
% |
|
35.5 |
% |
|
34.2 |
% |
|
26.8 |
% |
|
30.9 |
% |
||||
First Quarter |
|
Second Quarter |
|
Third Quarter |
|
Fourth Quarter |
|
Full Year |
|||||||||||
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
Occupancy |
|
48 |
% |
|
69 |
% |
|
73 |
% |
|
60 |
% |
|
63 |
% |
||||
ADR | $ |
300 |
|
$ |
323 |
|
$ |
325 |
|
$ |
295 |
|
$ |
312 |
|
||||
RevPAR | $ |
144 |
|
$ |
222 |
|
$ |
237 |
|
$ |
178 |
|
$ |
196 |
|
||||
Hotel Revenues | $ |
231.6 |
|
$ |
366.3 |
|
$ |
388.0 |
|
$ |
308.1 |
|
$ |
1,294.0 |
|
||||
Hotel EBITDA | $ |
46.1 |
|
$ |
125.5 |
|
$ |
123.0 |
|
$ |
63.2 |
|
$ |
357.9 |
|
||||
Hotel EBITDA Margin |
|
19.9 |
% |
|
34.3 |
% |
|
31.7 |
% |
|
20.5 |
% |
|
27.7 |
% |
||||
First Quarter |
|
Second Quarter |
|
Third Quarter |
|||||||||||||||
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|||||||||
Occupancy |
|
58 |
% |
|
73 |
% |
|
75 |
% |
||||||||||
ADR | $ |
301 |
|
$ |
311 |
|
$ |
311 |
|
||||||||||
RevPAR | $ |
176 |
|
$ |
227 |
|
$ |
234 |
|
||||||||||
Hotel Revenues | $ |
294.1 |
|
$ |
377.4 |
|
$ |
389.1 |
|
||||||||||
Hotel EBITDA | $ |
60.4 |
|
$ |
112.1 |
|
$ |
114.3 |
|
||||||||||
Hotel EBITDA Margin |
|
20.5 |
% |
|
29.7 |
% |
|
29.4 |
% |
||||||||||
Notes: | |||||||||||||||||||
These historical hotel operating results include information for all of the hotels the Company owned as of September 30, 2023, as if they were owned as of January 1, 2019, except for LaPlaya Beach Resort & Club which is excluded from all time periods due to its closure following Hurricane Ian. 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 | ||||||||
2023 Same-Property Inclusion Reference Table | ||||||||
Hotels | Q1 | Q2 | Q3 | Q4 | ||||
Hotel Monaco Seattle | X | |||||||
Hotel Vintage Seattle | X | |||||||
LaPlaya Beach Resort & Club | ||||||||
1 Hotel San Francisco | X | X | ||||||
The Westin Michigan Avenue Chicago - Retail Parcel | X | |||||||
Newport Harbor Island Resort | X | X | X | |||||
Hotel Zoe Fisherman's Wharf | X | 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, 2023, except for the following: • LaPlaya Beach Resort & Club is excluded 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 fourth quarter of 2023 include all of the hotels the Company owned as of September 30, 2023, except for the following: • LaPlaya Beach Resort & Club is excluded due to its closure following Hurricane Ian. • Newport Harbor Island Resort is excluded due to its upcoming redevelopment. • Hotel Zoe Fisherman's Wharf is excluded due to its anticipated sale. Operating statistics and financial results may include periods prior to the Company's ownership of the hotels. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20231026078591/en/
Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330
Source: Pebblebrook Hotel Trust
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