Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today
provided an update on recent operating trends and information.
Please visit
https://investor.pebblebrookhotels.com/investor-presentations-1 to
view the updated presentation the Company issued on its
website.
Additionally, based upon an initial review of preliminary
operating and financial results, the Company has provided
preliminary fourth quarter and full year 2022 results as
follows:
Preliminary Q4 2022 Results(1)
(As of 1/20/2023)
Prior Q4 2022 Outlook (As of
12/20/2022)
Variance(2)
Low
High
Low
High
Low
High
($ and shares/units in millions,
except per share and RevPAR data)
Net loss
($41)
($39)
($40)
($36)
($1)
($3)
Adjusted EBITDAre(3)
$56
$58
$52
$56
$4
$2
Adjusted FFO(3)
$24
$26
$17
$21
$7
$5
Adjusted FFO per diluted share(3)
$0.19
$0.20
$0.13
$0.16
$0.06
$0.04
Same Property RevPAR(3)
$174
$174
$173
$175
$1
($1)
Same Property RevPAR variance vs.
2019(3)
(7.8%)
(7.8%)
(8.0%)
(7.0%)
0.2%
(0.8%)
Same Property RevPAR variance vs.
2021(3)
25.6%
25.6%
25.2%
26.6%
0.4%
(1.0%)
Same Property EBITDA(3)
$63.2
$65.2
$61.0
$65.0
$2.2
$0.2
Same Property EBITDA variance vs.
2019(3)
(29.1%)
(26.9%)
(31.6%)
(27.1%)
2.5%
0.2%
Preliminary Full Year 2022
Results(1) (As of 1/20/2023)
Prior Full Year 2022 Outlook
(As of 12/20/2022)
Variance(2)
Low
High
Low
High
Low
High
($ and shares/units in millions,
except per share and RevPAR data)
Net loss
($87)
($85)
($85)
($81)
($2)
($4)
Adjusted EBITDAre(3)
$355
$357
$351
$355
$4
$2
Adjusted FFO(3)
$220
$222
$212
$216
$8
$6
Adjusted FFO per diluted share(3)
$1.68
$1.69
$1.61
$1.64
$0.07
$0.05
Same Property RevPAR(3)
$193
$193
$193
$193
-
-
Same Property RevPAR variance vs.
2019(3)
(8.0%)
(8.0%)
(8.0%)
(7.75%)
-
(0.3%)
Same Property RevPAR variance vs.
2021(3)
67.0%
67.0%
67.2%
67.2%
(0.2%)
(0.2%)
Same Property EBITDA(3)
$389.0
$391.0
$386.8
$390.8
$2.2
$0.2
Same Property EBITDA variance vs.
2019(3)
(16.0%)
(15.5%)
(16.4%)
(15.6%)
0.4%
0.1%
(1) Preliminary results may differ materially
from actual results, which are not yet available.
(2) Any differences are a result of
rounding.
(3) 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"), Adjusted EBITDAre, Adjusted Funds from Operations
("FFO") and Adjusted FFO per share.
For the details as to which hotels are
included in Same Property Revenue Per Available Room (“RevPAR”) and
Same Property EBITDA appearing in the table, refer to the Same
Property Inclusion Reference Table later in this press release.
Additionally, the Company announced that it had executed a
contract to sell the 151-room The Heathman Hotel in Portland,
Oregon for $45.0 million to a third party. 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 later in the
first quarter of 2023.
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 “preliminary,” “targeted,” “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
preliminary operating and financial results for the quarter and
year ended December 31, 2022, and the timing of completion of the
hotel property sale. 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, potential additional impairment
charges relating to remediation and restoration of storm damage to
LaPlaya Beach Resort & Club, the state of the U.S. economy and
the supply of hotel properties, and other factors as are described
in greater detail in the Company’s filings with the SEC, including,
without limitation, the Company’s Annual Report on Form 10-K for
the year ended December 31, 2021. Unless legally required, the
Company disclaims any obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
For further information about the Company’s business and
financial results, please refer to the "Management’s Discussion and
Analysis of Financial Condition and Results of Operations” and
“Risk Factors” sections of the Company’s filings with the U.S.
Securities and Exchange Commission, including, but not limited to,
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,
copies of which may be obtained at the Investor Relations section
of the Company’s website at www.pebblebrookhotels.com.
All information in this press release is as of January 20, 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 Reconciliation of Preliminary Q4
2022 and Preliminary Full Year 2022 Net Loss to FFO and Adjusted
FFO (in millions, except per share data)
(Unaudited) Preliminary - Three months
endedDecember 31, 2022 Preliminary - Year endedDecember 31,
2022 Low High Low High
Net loss
$
(41
)
$
(39
)
$
(87
)
$
(85
)
Adjustments: Real estate depreciation and amortization
60
60
239
239
(Gain) loss on sale of hotel properties
-
-
(6
)
(6
)
Impairment loss
4
4
90
90
FFO
$
23
$
25
$
236
$
238
Distribution to preferred shareholders and unit holders
(12
)
(12
)
(48
)
(48
)
Issuance costs of redeemed preferred shares
8
8
8
8
FFO available to common share and unit holders
$
19
$
21
$
196
$
198
Non-cash ground rent
2
2
8
8
Amortization of share-based compensation expense
3
3
11
11
Early extinguishment of debt
8
8
8
8
Issuance costs of redeemed preferred shares
(8
)
(8
)
(8
)
(8
)
Other
-
-
5
5
Adjusted FFO available to common share and unit holders
$
24
$
26
$
220
$
222
FFO per common share - diluted
$
0.15
$
0.16
$
1.49
$
1.51
Adjusted FFO per common share - diluted
$
0.19
$
0.20
$
1.68
$
1.69
Weighted-average number of fully diluted common shares and
units
130.0
130.0
131.3
131.3
To supplement the Company’s presentation of preliminary
results of Net loss 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.- Early extinguishment of debt: The Company
excludes early extinguishment of debt because the Company believes
that including this adjustment in FFO does not reflect the
underlying financial performance of the Company and its hotels.-
Issuance costs of redeemed preferred shares: The Company excludes
issuance costs of redeemed preferred shares 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
Preliminary Q4 2022 and Preliminary Full Year 2022 Net Loss to
EBITDA, EBITDAre and Adjusted EBITDAre (in millions)
(Unaudited) Preliminary - Three months
endedDecember 31, 2022 Preliminary - Year endedDecember 31,
2022 Low High Low High
Net loss
$
(41
)
$
(39
)
$
(87
)
$
(85
)
Adjustments: Interest expense and income tax expense
28
28
100
100
Depreciation and amortization
60
60
239
239
EBITDA
$
47
$
49
$
252
$
254
(Gain) loss on sale of hotel properties
-
-
(6
)
(6
)
Impairment loss
4
4
90
90
EBITDAre
$
51
$
53
$
336
$
338
Non-cash ground rent
2
2
8
8
Amortization of share-based compensation expense
3
3
11
11
Other
-
-
-
-
Adjusted EBITDAre
$
56
$
58
$
355
$
357
To supplement the Company’s presentation of preliminary
results of Net loss 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 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 estimates and
assumptions for Same Property RevPAR, RevPAR Growth, Total RevPAR,
Total RevPAR Growth, ADR, Occupancy, Revenues, Expenses, EBITDA and
EBITDA Margin for the fourth quarter of 2022 include all of the
hotels the Company owned as of 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 during Q4 2022.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/20230120005065/en/
Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel
Trust - (240) 507-1330
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