Q2 FINANCIAL
HIGHLIGHTS
- Net income: $46.2 million
- Same-Property Total RevPAR(1) increased 0.6% vs. 2022, with
urban markets up 6.0%, leading the portfolio’s growth
- Same-Property EBITDA of $110.7 million, in line with our
previous Q2 Outlook
- Adjusted EBITDAre(1) of $116.2 million and Adjusted FFO(1) per
diluted share of $0.62, both exceeded our Q2 Outlook
- Repurchased 3.6 million common shares for $50.0 million during
the quarter
HOTEL OPERATING TRENDS
- Business demand, both group and transient, continues to
recover; strong occupancy gains in San Francisco, Los Angeles,
Washington DC, Chicago, and Portland
- Group revenue pace for the second half of 2023 is ahead a
robust 18.5% over the same period in 2022, with ADR ahead by
7.3%
- Leisure demand continues to be healthy, with weekend occupancy
ahead of the same period in 2022, but with moderating room rates
and less demand for suite and premium room upgrades; unusually cold
and wet weather in April through early June negatively impacted
weekend demand at the Company’s west coast hotels and resorts
PORTFOLIO UPDATES &
REPOSITIONINGS
- During the quarter, $97.0 million of property sales were
completed, including Hotel Monaco Seattle ($63.3 million) and Hotel
Vintage Seattle ($33.7 million)
- Invested $52.5 million in capital improvements during the
quarter, including major repositioning projects at Viceroy Santa
Monica Hotel, Hilton San Diego Gaslamp Quarter, Jekyll Island Club
Resort, Estancia La Jolla Hotel & Spa, and the conversion of
Hotel Solamar into Margaritaville Hotel San Diego Gaslamp
Quarter
Q3 2023 OUTLOOK
- Net income: $14.6 to $20.6 million
- Same-Property RevPAR(1) vs. 2022: (2.0%) to +1.0%
- Adjusted EBITDAre(1): $110.0 to $116.0 million
- Adjusted FFO(1) per diluted share: $0.56 to $0.61
(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.
“Adjusted EBITDAre and Adjusted FFO exceeded our Outlook in the
second quarter. The sustained recovery in demand within our urban
markets was predominantly driven by recovering business travel,
both group and transient, along with recovering leisure travelers
returning to the cities for concerts, events and other activities.
This largely offset moderating leisure room rates and premium room
and suite purchases by the leisure customer at our resorts. In
addition, displaced business from our repositioning projects during
the quarter reduced hotel EBITDA by $6.5 million, or $1.0 million
more than expected.
“As part of our strategic capital reallocation efforts, we
completed the successful divestment of our two properties in
Seattle, bringing total gross proceeds from sales this year to
$232.3 million. Proceeds generated from our sales to date, after
transaction costs, have been allocated towards reducing our net
debt and repurchasing our common shares at a significant discount
compared to the private market value of our portfolio. These
strategic initiatives attest to our commitment to bolstering
shareholder value while maintaining liquidity and a prudently
leveraged balance sheet.”
-Jon E. Bortz, Chairman and Chief Executive Officer of
Pebblebrook Hotel Trust
Second Quarter and Year-to-Date Highlights
Second Quarter
Six Months Ended June
30,
Same-Property and Corporate
Highlights
2023
2022
Variance
2023
2022
Variance
($ in millions except per share
and RevPAR data)
Net income (loss)
$46.2
$28.8
60.4%
$24.1
($71.4)
NM
Same-Property Room Revenues(1)
$240.9
$240.9
0.0%
$426.5
$397.5
7.3%
Same-Property Total Revenues(1)
$367.5
$364.9
0.7%
$657.2
$599.0
9.7%
Same-Property Total Expenses(1)
$256.8
$237.8
8.0%
$487.2
$424.6
14.8%
Same-Property EBITDA(1)
$110.7
$127.2
(12.9%)
$170.0
$174.4
(2.6%)
Adjusted EBITDAre(1)
$116.2
$128.8
(9.7%)
$177.0
$175.2
1.0%
Adjusted FFO(1)
$75.7
$95.0
(20.3%)
$98.1
$109.0
(10.0%)
Adjusted FFO per diluted share(1)
$0.62
$0.72
(13.9%)
$0.79
$0.83
(4.8%)
2023 Monthly Results
Same-Property Portfolio
Highlights(2)
Jan
Feb
Mar
Apr
May
Jun
($ in millions except ADR and
RevPAR data)
Occupancy
47%
60%
67%
71%
72%
77%
ADR
$287
$293
$303
$308
$303
$312
RevPAR
$136
$175
$202
$219
$216
$241
Total Revenues
$80.8
$93.0
$115.9
$116.9
$122.2
$128.4
Total Revenues growth rate (‘23 vs.
‘22)
59%
20%
10%
1%
3%
(1%)
Hotel EBITDA
$6.0
$18.7
$34.6
$34.6
$37.3
$38.8
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.
Adjusted EBITDAre, Adjusted FFO
and Adjusted FFO per share exclude the amortization of share-based
compensation expense. Historical and comparable period results of
such non-GAAP financial measures have been adjusted to reflect the
exclusion.
(2)
Includes information for all the
hotels the Company owned as of June 30, 2023, except for the
following:
- 1 Hotel San Francisco (excluded
from Jan – Jun)
- LaPlaya Beach Resort & Club
(excluded from Jan – Jun)
- Hotel Monaco Seattle (included
in Jan – Mar, but excluded from Apr – Jun)
- Hotel Vintage Seattle (included
in Jan – Mar, but excluded from Apr – Jun)
- Westin Michigan Avenue Retail
Parcel (included in Jan – Mar, but excluded from Apr – Jun)
“Our urban hotels led the portfolio growth this quarter, with
same-property occupancy rising 6.6%,” said Mr. Bortz. “This is a
very positive sign and highlights that the recovery of our
portfolio is progressing steadily, as business travel continues to
make its way back to pre-pandemic levels. We believe this
year-over-year growth would have been even higher, if not for the
omicron-related rebookings from last year’s first quarter to the
second quarter of 2022. This created a tougher comparison to the
second quarter of 2022. We expect business travel to continue to
improve in the second half of the year, led by group demand which
is pacing ahead by 18.5% in group revenue for the second half of
this year as compared to last year’s second half. Weekend demand
also improved for our portfolio during the second quarter, at both
our resorts and urban hotels. This demonstrates that leisure
customers are still traveling, despite any macroeconomic
concerns.”
Update on Impact from Hurricane Ian
The Company made significant progress restoring and reopening
the 189-room LaPlaya Beach Resort & Club (“LaPlaya”) in Naples,
Florida. The resort’s Bay Tower (40 rooms) and Gulf Tower (70
rooms) are now substantially restored and both are fully
operational, with additional resort services and amenities
progressively coming online. The Beach House (79 rooms), with its
full-service spa and fitness center, is expected to be
substantially completed and returned to service by the end of
2023.
Pebblebrook 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 $14.0 million was recorded in Q2 related to lost
income from Q1 2023. The Company anticipates an additional
preliminary business interruption settlement of approximately $10.5
million to be approved in Q3 2023 relating to lost business from Q2
2023. Pebblebrook expects to record additional business
interruption settlements in 2023 as these are determined and
finalized with its insurance providers.
Update on Strategic Dispositions
The Company completed two property dispositions during the
quarter, generating $97.0 million in gross sales proceeds. This
included the sales of Hotel Monaco Seattle (189 rooms) for $63.3
million and Hotel Vintage Seattle (125 rooms) for $33.7 million.
Year to date, the Company has completed $232.3 million of property
dispositions. Net proceeds from the Company’s dispositions are
being used for general corporate purposes, including reducing the
Company’s outstanding net debt and repurchasing common and
preferred shares to further strengthen the Company’s balance sheet
and enhance shareholder value.
Common Share Repurchases
In Q2 2023, the Company repurchased 3.6 million common shares at
an average price of $13.97 per share. Since the start of our share
repurchase initiatives in October 2022, the Company has repurchased
over 11 million common shares, or approximately 8% of the Company’s
outstanding common shares, at an average price of $14.51 per share,
representing an approximate 50% discount to the midpoint of the
Company’s most recently published Net Asset Value (“NAV”).
Capital Investments and Strategic Property
Redevelopments
The Company made significant progress on its capital improvement
program in the second quarter, completing $52.5 million of
investments across its portfolio, which excludes capital
expenditures related to the repair and remediation of LaPlaya. This
includes the redevelopment and repositioning of Viceroy Santa
Monica Hotel, Jekyll Island Club Resort, Estancia La Jolla Hotel
& Spa, Hilton San Diego Gaslamp Quarter, and the redevelopment
and upcoming reflagging of Hotel Solamar as Margaritaville Hotel
San Diego Gaslamp Quarter. The Company’s second quarter 2023 RevPAR
growth would have been 180 basis points higher by excluding the
impact of these five properties on the portfolio.
The renovation of the four guesthouses (50 rooms/suites) at
Southernmost Beach Resort in Key West, FL began this month, and the
comprehensive redevelopment and repositioning of Newport Harbor
Island Resort is slated to begin in the fourth quarter, with
completion expected in Q2 2024.
For 2023, the Company expects to invest $145 to $155 million in
capital improvements, which excludes capital expenditures related
to the repair and remediation of LaPlaya. Since 2018, the Company
has reinvested approximately $660 million into redeveloping its
assets, including $325 million of ROI-generating investments. These
ROI investments are expected to generate a healthy return on
investment in line with the Company’s previous redevelopment and
repositioning projects. By early 2024, substantially all of the
Company’s properties will have been recently renovated, and future
capital investments and repositionings are expected to be
substantially reduced.
Balance Sheet and Liquidity
As of June 30, 2023, the Company had $823.7 million in
liquidity, consisting of $186.3 million in cash, cash equivalents,
and restricted cash, plus $637.4 million of undrawn availability on
its senior unsecured revolving credit facility.
The Company's $2.4 billion of consolidated debt and convertible
notes is well-structured, with an effective weighted-average
interest rate of 4.3%. The majority of the debt and convertible
notes, or 78%, is at an effective weighted-average fixed interest
rate of 3.4%, which mitigates the exposure to rising interest
rates. The remaining 22% of the Company’s debt is at a floating
interest rate of 7.5%. In addition, approximately 91% of the
Company’s outstanding debt is unsecured, and the weighted-average
maturity is 2.8 years. The Company has no meaningful debt
maturities until Q4 2024.
Common and Preferred Dividends
On June 15, 2023, 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
- $0.35625 per 5.7% Series H Cumulative Redeemable Preferred
Share.
Update on Curator Hotel & Resort Collection
Curator Hotel & Resort Collection (“Curator”) is a curated
collection of experientially focused small brands and independent
lifestyle hotels and resorts worldwide founded by Pebblebrook and
several industry-leading independent lifestyle hotel operators.
Curator has 101 member hotels and 108 master service agreements
with preferred vendor partners. These agreements provide Curator
member hotels with preferred pricing, enhanced operating terms, and
early access to curated new technologies. Curator's mission is to
help independent lifestyle hotels and resorts achieve their full
potential by providing them with the resources and support they
need to compete with larger brands and operators while remaining
independent.
Q3 2023 Outlook
Based on current trends and assuming no material disruptions to
travel caused by pandemics or worsening macro-economic conditions,
the Company’s outlook for Q3 2023 is as follows:
Q3 2023
Outlook
Low
High
($ and shares/units in millions,
except per share and RevPAR data)
Net income
$14.6
$20.6
Adjusted EBITDAre
$110.0
$116.0
Adjusted FFO
$68.0
$74.0
Adjusted FFO per diluted share
$0.56
$0.61
This Q3 2023 Outlook is based, in part, on the following
estimates and assumptions:
Same-Property RevPAR
$232
$239
Same-Property RevPAR variance vs. 2022
(2.0%)
1.0%
Same-Property EBITDA
$109.5
$115.5
Same-Property EBITDA variance vs. 2022
(11.0%)
(6.1%)
This outlook incorporates the Company’s best estimate at this
time ($0.5 million of Same-Property EBITDA) of the negative impact
of the Writers and Screen Actors Guild strikes in Los Angeles,
which is negatively impacting business demand at the Company’s
hotels in Los Angeles. It also incorporates a $1.0 million negative
impact to Same-Property EBITDA from the completion of our
redevelopment projects.
The third quarter outlook assumes an estimated $10.5 million for
an additional preliminary business interruption settlement at
LaPlaya relating to lost income from the second quarter of 2023.
This amount affects the Company’s Adjusted EBITDAre, Adjusted FFO,
and net income.
Second Quarter 2023 Earnings Call
The Company will conduct its quarterly analyst and investor
conference call on Friday, July 28, 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 the United States. The
Company owns 47 hotels and resorts, totaling approximately 12,200
guest rooms across 13 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 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
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 July 27, 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.
Pebblebrook Hotel Trust Consolidated Balance Sheets
($ in thousands, except share and per-share data)
June 30, 2023 December 31, 2022 (Unaudited)
ASSETS Assets: Investment in hotel properties, net
$
5,714,316
$
5,874,876
Hotels held for sale
-
44,861
Cash and cash equivalents
175,551
41,040
Restricted cash
10,740
11,229
Hotel receivables (net of allowance for doubtful accounts of $372
and $431, respectively)
51,581
45,258
Prepaid expenses and other assets
121,178
116,276
Total assets
$
6,073,366
$
6,133,540
LIABILITIES AND EQUITY
Liabilities: Unsecured revolving credit facilities
$
-
$
-
Unsecured term loans, net of unamortized deferred financing costs
1,373,532
1,372,057
Convertible senior notes, net of unamortized debt premium and
discount and deferred financing costs
746,794
746,326
Senior unsecured notes, net of unamortized deferred financing costs
49,960
49,920
Mortgage loans, net of unamortized debt discount and deferred
financing costs
218,497
218,990
Accounts payable, accrued expenses and other liabilities
258,454
250,518
Lease liabilities - operating leases
320,519
320,402
Deferred revenues
81,262
73,603
Accrued interest
8,086
4,535
Liabilities related to hotels held for sale
-
428
Distribution payable
12,150
12,218
Total liabilities
3,069,254
3,048,997
Commitments and contingencies
Shareholders' Equity:
Preferred shares of beneficial interest, $0.01 par value
(liquidation preference $715,000 at June 30, 2023 and December 31,
2022), 100,000,000 shares authorized; 28,600,000 shares issued and
outstanding at June 30, 2023 and December 31, 2022
286
286
Common shares of beneficial interest, $0.01 par value, 500,000,000
shares authorized; 120,057,744 shares issued and outstanding at
June 30, 2023 and 126,345,293 shares issued and outstanding at
December 31, 2022
1,201
1,263
Additional paid-in capital
4,094,680
4,182,359
Accumulated other comprehensive income (loss)
43,956
35,724
Distributions in excess of retained earnings
(1,225,748
)
(1,223,117
)
Total shareholders' equity
2,914,375
2,996,515
Non-controlling interests
89,737
88,028
Total equity
3,004,112
3,084,543
Total liabilities and equity
$
6,073,366
$
6,133,540
Pebblebrook Hotel Trust Consolidated Statements of
Operations ($ in thousands, except share and per-share
data) (Unaudited)
Three months ended June
30,
Six months ended June
30,
2023
2022
2023
2022
Revenues: Room
$
250,934
$
261,394
$
447,308
$
430,026
Food and beverage
93,748
100,724
169,511
163,148
Other operating
39,661
35,406
73,243
62,418
Total revenues
$
384,343
$
397,524
$
690,062
$
655,592
Expenses: Hotel operating expenses: Room
$
64,690
$
58,002
$
121,114
$
100,465
Food and beverage
68,985
64,513
127,657
110,563
Other direct and indirect
112,354
105,881
211,568
191,728
Total hotel operating expenses
246,029
228,396
460,339
402,756
Depreciation and amortization
57,957
60,274
116,326
119,374
Real estate taxes, personal property taxes, property insurance, and
ground rent
29,571
33,020
58,475
63,477
General and administrative
11,202
9,686
21,190
19,394
Impairment
-
12,271
-
73,254
(Gain) loss on sale of hotel properties
(23,584
)
-
(30,219
)
-
Business interruption insurance income
(14,015
)
-
(22,104
)
-
Other operating expenses
2,377
1,933
6,047
3,056
Total operating expenses
309,537
345,580
610,054
681,311
Operating income (loss)
74,806
51,944
80,008
(25,719
)
Interest expense
(29,544
)
(23,161
)
(56,974
)
(45,733
)
Other
952
14
1,135
33
Income (loss) before income taxes
46,214
28,797
24,169
(71,419
)
Income tax (expense) benefit
(31
)
-
(31
)
-
Net income (loss)
46,183
28,797
24,138
(71,419
)
Net income (loss) attributable to non-controlling interests
1,458
808
2,341
122
Net income (loss) attributable to the Company
44,725
27,989
21,797
(71,541
)
Distributions to preferred shareholders
(10,987
)
(11,343
)
(21,975
)
(22,687
)
Net income (loss) attributable to common shareholders
$
33,738
$
16,646
$
(178
)
$
(94,228
)
Net income (loss) per share available to common
shareholders, basic
$
0.27
$
0.13
$
(0.00
)
$
(0.72
)
Net income (loss) per share available to common shareholders,
diluted
$
0.24
$
0.12
$
(0.00
)
$
(0.72
)
Weighted-average number of common shares, basic
121,696,400
130,904,876
123,581,926
130,904,589
Weighted-average number of common shares, diluted
151,238,955
160,720,239
123,581,926
130,904,589
Considerations Regarding Non-GAAP Financial
Measures 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 June
30,
Six months ended June
30,
2023
2022
2023
2022
Net income (loss)
$
46,183
$
28,797
$
24,138
$
(71,419
)
Adjustments: Real estate depreciation and amortization
57,871
60,185
116,155
119,195
Gain on sale of hotel properties
(23,584
)
-
(30,219
)
-
Impairment loss
-
12,271
-
73,254
FFO
$
80,470
$
101,253
$
110,074
$
121,030
Distribution to preferred shareholders and unit holders
(12,151
)
(11,991
)
(24,303
)
(23,335
)
FFO available to common share and unit holders
$
68,319
$
89,262
$
85,771
$
97,695
Transaction costs
257
137
310
152
Non-cash ground rent
1,905
1,937
3,811
3,875
Management/franchise contract transition costs
99
126
211
389
Interest expense adjustment for acquired liabilities
543
764
1,084
1,486
Finance lease adjustment
736
725
1,470
1,447
Non-cash amortization of acquired intangibles
(482
)
(542
)
(4,531
)
(1,084
)
Non-cash interest expense
-
-
-
49
Amortization of share-based compensation expense
3,032
2,619
5,911
4,974
Hurricane-related costs
1,282
-
4,067
-
Adjusted FFO available to common share and unit holders
$
75,691
$
95,028
$
98,104
$
108,983
FFO per common share - basic
$
0.56
$
0.68
$
0.69
$
0.74
FFO per common share - diluted
$
0.56
$
0.68
$
0.69
$
0.74
Adjusted FFO per common share - basic
$
0.62
$
0.72
$
0.79
$
0.83
Adjusted FFO per common share - diluted
$
0.62
$
0.72
$
0.79
$
0.83
Weighted-average number of basic common shares and units
122,704,780
131,781,980
124,590,306
131,781,693
Weighted-average number of fully diluted common shares and units
122,806,160
132,156,168
124,590,306
131,781,693
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
endedJune 30, Six months endedJune 30,
2023
2022
2023
2022
Net income (loss)
$
46,183
$
28,797
$
24,138
$
(71,419
)
Adjustments: Interest expense
29,544
23,161
56,974
45,733
Income tax expense (benefit)
31
-
31
-
Depreciation and amortization
57,957
60,274
116,326
119,374
EBITDA
$
133,715
$
112,232
$
197,469
$
93,688
Gain on sale of hotel properties
(23,584
)
-
(30,219
)
-
Impairment loss
-
12,271
-
73,254
EBITDAre
$
110,131
$
124,503
$
167,250
$
166,942
Transaction costs
257
137
310
152
Non-cash ground rent
1,905
1,937
3,811
3,875
Management/franchise contract transition costs
99
126
211
389
Non-cash amortization of acquired intangibles
(482
)
(542
)
(4,531
)
(1,084
)
Amortization of share-based compensation expense
3,032
2,619
5,911
4,974
Hurricane-related costs
1,282
-
4,067
-
Adjusted EBITDAre
$
116,224
$
128,780
$
177,029
$
175,248
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 Q3 2023 Outlook Net Income (Loss) to FFO and
Adjusted FFO (in millions, except per share data)
(Unaudited) Three months endingSeptember 30,
2023 Low High Net income (loss)
$
15
$
21
Adjustments: Real estate depreciation and amortization
59
59
(Gain) loss on sale of hotel properties
-
-
Impairment loss
-
-
FFO
$
74
$
80
Distribution to preferred shareholders and unit holders
(12
)
(12
)
FFO available to common share and unit holders
$
62
$
68
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
$
68
$
74
FFO per common share - diluted
$
0.51
$
0.56
Adjusted FFO per common share - diluted
$
0.56
$
0.61
Weighted-average number of fully diluted common shares and
units
121.5
121.5
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 Q3
2023 Outlook Net Income (Loss) to EBITDA, EBITDAre and Adjusted
EBITDAre ($ in millions) (Unaudited)
Three months endingSeptember 30, 2023 Low High
Net income (loss)
$
15
$
21
Adjustments: Interest expense and income tax expense
31
31
Depreciation and amortization
59
59
EBITDA
$
105
$
111
(Gain) loss on sale of hotel properties
-
-
Impairment loss
-
-
EBITDAre
$
105
$
111
Non-cash ground rent
2
2
Amortization of share-based compensation expense
3
3
Other
-
-
Adjusted EBITDAre
$
110
$
116
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 June
30,
Six months ended June
30,
2023
2022
2023
2022
Same-Property Occupancy
73.2
%
70.0
%
65.5
%
59.2
%
2023 vs. 2022 Increase/(Decrease)
4.6
%
10.8
%
Same-Property ADR
$
307.64
$
322.05
$
302.02
$
311.82
2023 vs. 2022 Increase/(Decrease)
(4.5
%)
(3.1
%)
Same-Property RevPAR
$
225.25
$
225.36
$
197.95
$
184.53
2023 vs. 2022 Increase/(Decrease)
(0.0
%)
7.3
%
Same-Property Total RevPAR
$
343.66
$
341.45
$
305.00
$
278.09
2023 vs. 2022 Increase/(Decrease)
0.6
%
9.7
%
Notes: The schedule of hotel
results for the three months ended June 30 includes information
from all of the hotels the Company owned as of June 30, 2023,
except for the following: •
Q2 Same-Property
Exclusions: 1 Hotel San Francisco, LaPlaya Beach Resort
& Club, Hotel Monaco Seattle (sold),
Hotel Vintage Seattle (sold),
Westin Michigan Avenue Retail Parcel (sold)
The schedule of hotel results for the sixth months ended
June 30 includes information from all of the hotels the Company
owned as of June 30, 2023, except for the following: •
Q1
Same-Property Exclusions: 1 Hotel San Francisco, LaPlaya Beach
Resort & Club •
Q2 Same-Property Exclusions: 1 Hotel San
Francisco, LaPlaya Beach Resort & Club, Hotel Monaco Seattle
(sold), Hotel Vintage Seattle (sold), Westin Michigan Avenue
Retail Parcel (sold) 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 June
30,
Six months ended June
30,
2023
2023
Same-Property RevPAR variance to 2022: Washington DC
23.4
%
49.6
%
San Francisco
5.3
%
37.6
%
Chicago
19.1
%
25.9
%
Portland
5.1
%
15.4
%
Los Angeles
8.8
%
11.6
%
Boston
0.9
%
3.7
%
San Diego
(8.9
%)
2.2
%
Other
(14.7
%)
(10.2
%)
Southern Florida/Georgia
(13.4
%)
(10.2
%)
Urban
5.0
%
14.9
%
Resorts
(10.9
%)
(6.3
%)
Notes: The schedule of hotel
results for the three months ended June 30 includes information
from all of the hotels the Company owned as of June 30, 2023,
except for the following: •
Q2 Same-Property Exclusions:
1 Hotel San Francisco, LaPlaya Beach Resort & Club,
Hotel Monaco Seattle (sold), Hotel Vintage Seattle (sold)
The schedule of hotel results for the sixth months
ended June 30 includes information from all of the hotels the
Company owned as of June 30, 2023, except for the following: •
Q1 Same-Property Exclusions: 1 Hotel San Francisco, LaPlaya
Beach Resort & Club • Q2 Same-Property Exclusions: 1
Hotel San Francisco, LaPlaya Beach Resort & Club, Hotel
Monaco Seattle (sold), Hotel Vintage Seattle (sold)
"Other" includes Newport, RI 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.
Hotel Operational Data Schedule of
Same-Property Results ($ in thousands)
(Unaudited)
Three months ended June
30,
Six months ended June
30,
2023
2022
2023
2022
Same-Property Revenues: Room
$
240,876
$
240,859
$
426,535
$
397,506
Food and beverage
89,469
92,978
161,974
146,296
Other
37,155
31,098
68,710
55,229
Total hotel revenues
367,500
364,935
657,219
599,031
Same-Property Expenses: Room
$
61,693
$
53,803
$
115,134
$
93,682
Food and beverage
63,866
59,433
118,978
100,342
Other direct
8,094
7,551
15,665
13,822
General and administrative
29,569
27,650
56,249
48,972
Information and telecommunication systems
5,019
4,183
9,997
8,312
Sales and marketing
26,666
22,271
50,650
40,025
Management fees
10,734
11,436
18,797
18,839
Property operations and maintenance
13,229
11,389
25,834
22,169
Energy and utilities
9,593
8,820
20,089
17,691
Property taxes
14,291
17,760
29,468
36,116
Other fixed expenses
14,045
13,484
26,385
24,614
Total hotel expenses
256,799
237,780
487,246
424,584
Same-Property EBITDA
$
110,701
$
127,155
$
169,973
$
174,447
Same-Property EBITDA Margin
30.1
%
34.8
%
25.9
%
29.1
%
Notes: The schedule of hotel
results for the three months ended June 30 includes information
from all of the hotels the Company owned as of June 30, 2023,
except for the following: •
Q2 Same-Property Exclusions:
1 Hotel San Francisco, LaPlaya Beach Resort & Club, Hotel
Monaco Seattle (sold), Hotel Vintage Seattle (sold), Westin
Michigan Avenue Retail Parcel (sold) The schedule
of hotel results for the sixth months ended June 30 includes
information from all of the hotels the Company owned as of June 30,
2023, except for the following:
• Q1 Same-Property
Exclusions: 1 Hotel San Francisco, LaPlaya Beach Resort &
Club • Q2 Same-Property Exclusions: 1 Hotel San Francisco,
LaPlaya Beach Resort & Club, Hotel Monaco Seattle (sold),
Hotel Vintage Seattle (sold), Westin Michigan Avenue Retail
Parcel (sold) 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
2023
2023
Occupancy
58
%
73
%
ADR
$
301
$
311
RevPAR
$
176
$
227
Hotel Revenues
$
294.1
$
377.4
Hotel EBITDA
$
60.4
$
112.1
Hotel EBITDA Margin
20.5
%
29.7
%
Notes: These historical hotel
operating results include information for all of the hotels the
Company owned as of June 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 the closure from 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
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 second 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 June 30, 2023, except for the
following:
- 1 Hotel San Francisco
- LaPlaya Beach Resort &
Club
- Hotel Monaco Seattle (sold)
- Hotel Vintage Seattle
(sold)
- Westin Michigan Avenue Retail
Parcel (sold)
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
third quarter of 2023 include all of the hotels the Company owned
as of June 30, 2023, except for the following:
- LaPlaya Beach Resort & Club
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/20230727654568/en/
Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel
Trust - (240) 507-1330 For additional information or to receive
press releases via email, please visit our website at
www.pebblebrookhotels.com
Pebblebrook Hotel (NYSE:PEB)
過去 株価チャート
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Pebblebrook Hotel (NYSE:PEB)
過去 株価チャート
から 6 2023 まで 6 2024