BETHESDA, Md.--October 26, 2012--Pebblebrook Hotel Trust
(NYSE: PEB) (the “Company”) today reported results for the quarter
ended September 30, 2012. The Company’s results include the following:
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Third Quarter |
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Nine months ended September 30, |
|
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2012
|
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2011
|
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2012
|
|
2011
|
|
|
($ in
millions except per share, RevPAR and margin data) |
|
|
|
|
|
|
|
|
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Net income (loss)
to common shareholders |
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$7.5
|
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$2.8
|
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$5.6
|
|
$1.0
|
Net income (loss)
per diluted share |
|
$0.13
|
|
$0.05
|
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$0.10
|
|
$0.01
|
|
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Pro forma RevPAR |
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$187.18
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$176.16
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$172.26
|
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$157.95
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Pro forma Hotel
EBITDA |
|
$37.5
|
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$32.4
|
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$90.6
|
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$73.6
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Pro forma Hotel
EBITDA Margin |
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31.0%
|
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28.1%
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27.4%
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23.9%
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Adjusted EBITDA(1)
|
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$35.4
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$26.5
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$82.3
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$51.2
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Adjusted FFO(1)
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$22.0
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$17.5
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$47.6
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$32.4
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Adjusted FFO per
diluted share(1) |
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$0.37
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$0.34
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$0.86
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$0.68
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(1) See tables later in this press
release for a description of pro forma information and reconciliations
from net income (loss) to non-GAAP financial measures, including
earnings before interest, taxes, depreciation and amortization
("EBITDA"), Adjusted EBITDA, Funds from Operations ("FFO"), FFO per
diluted share, Adjusted FFO and Adjusted FFO per diluted share.
For the details as to which hotels are included in Pro
forma RevPAR, ADR, Occupancy, Hotel Revenues, Hotel Expenses, Hotel
EBITDA and Hotel EBITDA Margins for the third quarter and nine months
ended September 30, 2012, refer to the Pro Forma Property Inclusion
Reference Table later in this press release.
“We are pleased with the performance of our portfolio during
the third quarter as we continued to outperform the hotel industry’s
solid growth,” said Jon E. Bortz, Chairman, President and Chief
Executive Officer of Pebblebrook Hotel Trust. “Despite moderating
economic trends, the hotel industry continued to generate healthy
RevPAR growth through demand that outpaced limited new supply, leading
to increased occupancy and pricing power that delivered attractive ADR
growth. With the majority of our major property renovations and
repositionings now complete, combined with significant upside
opportunity at the hotel level through our asset management initiatives
and implementation of our best practice programs, we believe we will
continue to outperform the industry over the next several years.”
Third Quarter Highlights
- Pro forma RevPAR, ADR and
Occupancy: Pro forma room revenue per available room (“Pro forma
RevPAR”) in the third quarter of 2012 increased 6.3 percent over the
same period of 2011 to $187.18. Pro forma average daily rate (“Pro
forma ADR”) grew 3.7 percent over the third quarter of 2011 to $215.69,
while Pro forma Occupancy increased 2.5 percent to 86.8 percent.
- Pro forma Hotel EBITDA: The
hotels generated $37.5 million of Pro forma Hotel EBITDA for the
quarter ended September 30, 2012, an improvement of 15.8 percent
compared to the same period of 2011. Pro forma Hotel Revenues increased
5.2 percent, while Pro forma Hotel Expenses rose 1.1 percent. As a
result, the Company’s Pro forma Hotel EBITDA Margin was 31.0 percent
for the quarter ended September 30, 2012 and represents an increase of
283 basis points as compared to the same period last year.
- Adjusted EBITDA: The
Company’s Adjusted EBITDA increased 33.8 percent, or $8.9 million, to
$35.4 million, from $26.5 million in the prior year period.
- Adjusted FFO: The Company’s
Adjusted FFO grew 26.1 percent to $22.0 million, from $17.5 million in
the prior year period.
- Capital Investments: During
the third quarter of 2012, the Company invested $12.3 million of
capital throughout its portfolio, including $2.2 million at the Westin
Gaslamp Quarter, $1.3 million at the Hotel Milano, $1.2 million at the
Sir Francis Drake and $1.1 million at the Mondrian Hotel.
- Dividends: On September 14,
2012, the Company declared a $0.12 per share quarterly dividend on its
common shares, a $0.4921875 per share quarterly dividend on its 7.875%
Series A Cumulative Redeemable Preferred Shares and a $0.50 per share
quarterly dividend on its 8.00% Series B Cumulative Redeemable
Preferred Shares.
“We were able to grow portfolio-wide Pro forma RevPAR 6.3
percent in the third quarter, well in excess of the industry’s 5.1
percent, despite a weaker September than expected, particularly in
Manhattan, and sluggish growth in business travel. This outperformance,
combined with our strong expense controls which limited portfolio-wide
hotel expense growth to just 1.1 percent, we were able to drive Hotel
EBITDA 15.8 percent higher over the prior year and improve operating
margins by 283 basis points,” noted Mr. Bortz. “We’re excited about the
progress we’ve made in improving operating performance since acquiring
our hotels and are encouraged by the increasingly positive impact our
array of best practice programs are having on our portfolio.”
Capital Reinvestment
In October 2012, the renovation, reconfiguration and expansion
of the meeting space and back of house at the Affinia Manhattan was
completed, creating 2,200 square feet of additional meeting space. The
renovation of the lobby and entry of the property is expected to be
complete by the end of the first quarter of 2013. The Company expects
to fund its 49% pro rata interest of the total project costs with
available cash.
In September 2012, the Company commenced a reconfiguration and
redesign of the lobby at the Mondrian Los Angeles. As part of this
enhancement, additional meeting and function space are being created.
This project is expected to be completed in December 2012.
“The recently completed capital investment programs at the
Westin Gaslamp Quarter, Sheraton Delfina and Monaco Seattle, along with
the prior year’s renovations of Affinia Manhattan, Sir Francis Drake,
Minneapolis Grand and InterContinental Buckhead, have provided us with
a sizable opportunity to generate higher room rates and increase RevPAR
penetration, which should substantially increase profitability and cash
flow at each of these properties in 2013 and beyond,” continued Mr.
Bortz. “Guest reviews and results at all of these properties following
our renovations continue to be very positive.”
The Company remains on track to close the Hotel Milano on
November 1, 2012 in order to proceed with the planned $12.5 million
comprehensive renovation, repositioning and expansion of the hotel,
which includes the creation of eight additional guest rooms, as well as
reconcepting the restaurant and all food and beverage operations. The
renovation is anticipated to be complete in the first quarter of 2013
and the hotel will be renamed upon reopening.
In January 2013, the Company, along with its joint venture
partner, expect to commence an $18.0 to $20.0 million comprehensive
renovation, reconfiguration and expansion of the Affinia 50, which
includes renovating the guest rooms, corridors and public areas. The
reconfiguration of the hotel will increase the number of guest rooms
from 210 to 251. This project is expected to be complete by the end of
the third quarter of 2013. The Company expects to fund its 49 percent
pro rata interest of the total project costs with available cash.
“We are thrilled with the opportunity to increase the room
count at the Affinia 50 by nearly 20%,” noted Mr. Bortz. “This increase
in rooms, coupled with the full property renovation, provides us with a
unique opportunity to significantly upgrade the Affinia 50, while at
the same time expanding our presence in one of the most desirable areas
of Manhattan through a highly attractive return on capital investment.
Given the breadth of the renovation, we expect EBITDA displacement to
be between $5.0 and $6.0 million during the first three quarters of
2013, of which 49 percent will impact Pebblebrook. While the
displacement represents a material disruption in 2013, we believe this
investment project will yield outsized returns in the future, similar
to the results achieved with the same kind of project recently
completed a year ago at the Affinia Manhattan.”
Acquisitions
- On July 9, 2012, the Company
acquired Hotel Vintage Park Seattle for $32.5 million. The 125-room,
AAA four-diamond, full-service, boutique hotel is centrally located in
the core of the downtown retail and financial center in Seattle,
Washington.
- On July 9, 2012, the Company
acquired the Hotel Vintage Plaza Portland for $30.5 million. The
117-room, AAA four-diamond, full-service, boutique hotel is located in
the heart of downtown Portland, Oregon.
- On August 23, 2012, the Company
acquired the W Los Angeles - Westwood hotel for $125.0 million. The
258-room, all-suite, luxury, full-service hotel is located in the
Westwood neighborhood of Los Angeles, California.
- The Company has entered into a
contract to acquire the Hotel Palomar San Francisco for $58.0 million
and expects to close on the transaction in the near future. The
196-room, AAA four-diamond, full-service boutique hotel is located in
downtown San Francisco, California.
“We’re very enthusiastic about the $276 million of
high-quality acquisitions this year in our target markets of San
Francisco, Seattle, Portland and Los Angeles,” commented Mr. Bortz. “We
continue to believe these properties offer excellent opportunities for
outsized RevPAR growth, margin expansion and value creation through
renovations and the implementation of our asset management and best
practice initiatives,” continued Mr. Bortz.
Since its initial public offering in December 2009, the
Company has acquired 24 properties (six through a joint venture)
totaling $2.0 billion of invested capital.
Year-to-Date Highlights
- Pro forma RevPAR, ADR and
Occupancy: Pro forma RevPAR for the nine months ended September 30,
2012 increased 9.1 percent over the same period of 2011 to $172.26.
Year-to-date, Pro forma ADR grew 3.9 percent over the comparable period
of 2011 to $209.98, while year-to-date Pro forma Occupancy climbed 4.9
percent to 82.0 percent.
- Pro forma Hotel EBITDA: The
Company’s hotels generated $90.6 million of Pro forma Hotel EBITDA for
the nine months ended September 30, 2012, an improvement of 23.1
percent compared with the same period of 2011. Pro forma Hotel Revenues
grew 7.2 percent, while Pro forma Hotel Expenses rose 2.2 percent. As a
result, Pro forma Hotel EBITDA Margin for the nine months ended
September 30, 2012 increased 354 basis points to 27.4 percent as
compared to the same period last year.
- Adjusted EBITDA: The
Company’s Adjusted EBITDA increased 60.8 percent, or $31.1 million, to
$82.3 million from $51.2 million in the prior year period.
- Adjusted FFO: The Company’s
Adjusted FFO climbed 47.0 percent to $47.6 million from $32.4 million
in the prior year period.
Balance Sheet
As of September 30, 2012, the Company had $359.1 million in
consolidated debt and $274.8 million in unconsolidated, non-recourse
debt at weighted-average interest rates of 4.0 percent and 3.2 percent,
respectively. The Company had $100.0 million outstanding in the form of
an unsecured term loan and complete availability of its $200.0 million
senior unsecured credit facility, which had no outstanding balance. As
of September 30, 2012, the Company had $158.2 million of consolidated
cash, cash equivalents and restricted cash and $19.3 million of
unconsolidated cash, cash equivalents and restricted cash. The
unconsolidated debt, cash, cash equivalents and restricted cash amounts
represent the Company’s 49 percent pro rata interest in the Manhattan
Collection, a joint venture with affiliates of Denihan Hospitality
Group that owns six upper upscale hotels in Midtown Manhattan, New
York. The weighted-average number of fully diluted common shares and
units outstanding for the quarter ended September 30, 2012 was 59.7
million.
On September 30, 2012, as defined in the Company’s credit
agreement, the Company’s fixed charge coverage ratio was 2.1 times,
total net debt to trailing 12-month Corporate EBITDA was 4.1 times and
total debt to total assets ratio was 34 percent. Excluding the
Manhattan Collection, the Company’s fixed charge coverage ratio was 2.2
times, net debt to trailing 12 month Corporate EBITDA was 2.4 times and
total debt to total assets ratio was 23 percent.
Capital Markets
The Company completed several capital transactions to help
fund strategic growth and maintain its strong balance sheet.
- On July 13, 2012, the Company
amended and restated its senior unsecured revolving credit facility.
The amended credit facility was increased to $300 million and is
comprised of a $200 million unsecured revolving credit facility and a
five year, $100 million unsecured term loan with a current interest
rate of 2.55 percent based on the Company’s current leverage ratio. The
pricing under the amended and restated credit facility was
significantly reduced and the facility now matures in July 2016 with an
option to extend to July 2017.
- From August 2012 through October
2012, the Company issued and sold 1,821,332 common shares under its ATM
offering program at an average price of $24.76 per share, for total net
proceeds of $44.4 million.
“We are thrilled with our continued ability to access the debt
and equity markets. This has allowed us to take advantage of
acquisition opportunities in the marketplace, which we expect will lead
to significant increases in value for our shareholders,” noted Raymond
D. Martz, Chief Financial Officer of Pebblebrook Hotel Trust.
2012 Outlook
The Company is amending its 2012 Outlook and tightening the
range to reflect third quarter performance and its outlook for the
fourth quarter.
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2012 Outlook |
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Low
|
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High
|
|
|
($ in
millions except per share and RevPAR data) |
Net income (loss)
to common shareholders |
|
$4.6
|
|
$6.6
|
Net income (loss)
per diluted share |
|
$0.08
|
|
$0.12
|
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Adjusted EBITDA |
|
$112.0
|
|
$114.0
|
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Adjusted FFO |
|
$63.5
|
|
$65.5
|
Adjusted FFO per
diluted share |
|
$1.12
|
|
$1.15
|
This 2012 outlook is based on the following estimates and
assumptions:
U.S. GDP Growth |
|
1.75%
|
|
2.00%
|
U.S. Hotel
Industry RevPAR Growth |
|
6.3%
|
|
6.7%
|
|
|
|
|
|
Portfolio RevPAR |
|
$173
|
|
$174
|
Portfolio RevPAR
Growth |
|
8.0%
|
|
8.5%
|
|
|
|
|
|
Portfolio Hotel
EBITDA |
|
$126.0
|
|
$128.0
|
Portfolio Hotel
EBITDA Margin |
|
27.6%
|
|
27.8%
|
Portfolio Hotel
EBITDA Margin Growth |
|
250 bps |
|
300 bps |
|
|
|
|
|
Corporate cash
general and administrative expenses |
|
$12.0
|
|
$12.5
|
Corporate
non-cash general and administrative expenses |
|
$3.7
|
|
$3.7
|
|
|
|
|
|
Acquisition costs
|
|
2.9
|
|
2.9
|
|
|
|
|
|
Total capital
investments related to renovations, capital maintenance and return on
investment projects |
|
$57.5
|
|
$62.5
|
|
|
|
|
|
Weighted-average
fully diluted shares and units |
|
56.8
|
|
56.8
|
|
|
|
|
|
The Company’s Outlook for the fourth quarter 2012 is as
follows:
|
|
Fourth Quarter 2012 Outlook |
|
|
Low
|
|
High
|
|
|
($ in
millions except per share and RevPAR data) |
Portfolio RevPAR |
|
$176
|
|
$179
|
Portfolio RevPAR
Growth |
|
4.5%
|
|
6.5%
|
|
|
|
|
|
Portfolio Hotel
EBITDA |
|
$33.8
|
|
$35.8
|
Portfolio Hotel
EBITDA Margin |
|
28.0%
|
|
28.5%
|
Portfolio Hotel
EBITDA Margin Growth |
|
100 bps
|
|
150 bps |
|
|
|
|
|
Adjusted EBITDA |
|
$29.8
|
|
$31.8
|
|
|
|
|
|
Adjusted FFO |
|
$16.0
|
|
$18.0
|
Adjusted FFO per
diluted share |
|
$0.27
|
|
$0.31
|
|
|
|
|
|
Weighted-average
fully diluted shares and units |
|
61.5
|
|
61.5
|
|
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|
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|
The Company’s 2012 and Fourth Quarter Outlooks include the
effects of its 49 percent pro rata interest in the Manhattan Collection
and the anticipated acquisition of the Hotel Palomar San Francisco, but
assumes no additional acquisitions.
Earnings Call
The Company will conduct its quarterly analyst and investor
conference call on Friday, October 26, 2012, at 9:00 AM EDT. To
participate in the conference call, please dial (888) 806-6198
approximately ten minutes before the call begins. Additionally, a live
webcast of the conference call will be available through the Company’s
website. To access the webcast, log on to http://www.pebblebrookhotels.com ten minutes prior
to the conference call. A replay of the conference call webcast will be
archived and available online through the Investor Relations section of
http://www.pebblebrookhotels.com.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust is a publicly traded real estate
investment trust (“REIT”) organized to opportunistically acquire and
invest primarily in upper upscale, full-service hotels located in urban
markets in major gateway cities. The Company owns 24 hotels, including
18 wholly owned hotels with a total of 4,419 guest rooms and a 49
percent joint venture interest in six hotels with a total of 1,733
guest rooms. The Company owns, or has an ownership interest in, hotels
located in ten states and the District of Columbia, including 16
markets: Los Angeles, California; San Diego, California; San Francisco,
California; Santa Monica, California; West Hollywood, California;
Miami, Florida; Buckhead, Georgia; Bethesda, Maryland; Boston,
Massachusetts; Minneapolis, Minnesota; New York, New York; Portland,
Oregon; Philadelphia, Pennsylvania; Columbia River Gorge, Washington;
Seattle, Washington; and Washington, DC. For more information, please
visit www.pebblebrookhotels.com.
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 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: projections and forecasts of U.S. GDP growth, U.S. hotel
industry RevPAR growth, the Company’s net income, FFO, EBITDA, Adjusted
FFO, Adjusted EBITDA, RevPAR, EBITDA Margin and EBITDA Margin Growth,
hotel-level EBITDA and EBITDA margin, and the Company’s expenses, share
count or other financial items; descriptions of the Company’s plans or
objectives for future operations, acquisitions or services; forecasts
of the Company’s future economic performance; forecasts of hotel
industry performance; expectations about the Company’s financing
activity; 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
Securities and Exchange Commission, including, without limitation, the
Company’s Annual Report on Form 10-K for the year ended December 31,
2011. 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 SEC filings, 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 release is as of October 25, 2012.
The Company undertakes no duty to update the statements in
this 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 data) |
|
|
|
September 30, 2012 |
December 31, 2011 |
|
|
(Unaudited)
|
|
|
ASSETS
|
Assets: |
|
|
|
|
Investment in
hotel properties, net |
|
$
|
1,348,499
|
|
|
$
|
1,127,484
|
|
Investment in
joint venture |
|
|
173,112
|
|
|
|
171,765
|
|
Ground lease
asset, net |
|
|
10,338
|
|
|
|
10,502
|
|
Cash and cash
equivalents |
|
|
147,475
|
|
|
|
65,684
|
|
Restricted cash |
|
|
10,693
|
|
|
|
9,469
|
|
Hotel receivables
(net of allowance for doubtful accounts of $73 and $71, respectively) |
|
|
18,827
|
|
|
|
11,312
|
|
Deferred
financing costs, net |
|
|
5,402
|
|
|
|
3,487
|
|
Prepaid
expenses and other assets |
|
|
18,619
|
|
|
|
16,929
|
|
Total
assets |
|
$
|
1,732,965
|
|
|
$
|
1,416,632
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY |
|
|
|
|
|
Liabilities: |
|
|
|
|
Senior unsecured
revolving credit facility |
|
$
|
-
|
|
|
$
|
-
|
|
Term loan |
|
|
100,000
|
|
|
|
-
|
|
Mortgage debt |
|
|
259,071
|
|
|
|
251,539
|
|
Accounts payable
and accrued expenses |
|
|
40,986
|
|
|
|
33,333
|
|
Advance deposits |
|
|
5,379
|
|
|
|
4,380
|
|
Accrued interest |
|
|
1,104
|
|
|
|
1,000
|
|
Distribution
payable |
|
|
11,209
|
|
|
|
10,032
|
|
Total liabilities
|
|
|
417,749
|
|
|
|
300,284
|
|
Commitments and
contingencies |
|
|
|
|
Shareholders'
equity: |
|
|
|
|
Preferred shares of beneficial
interest, $.01 par value (liquidation preference of $225,000 at
September 30, 2012 and December 31, 2011), 100,000,000 shares
authorized; 9,000,000 shares issued and outstanding at September 30,
2012 and at December 31, 2011
|
|
|
90
|
|
|
|
90
|
|
Common shares of beneficial
interest, $.01 par value, 500,000,000 shares authorized; 60,356,201
issued and outstanding at September 30, 2012 and 50,769,024 issued and
outstanding at December 31, 2011
|
|
|
604
|
|
|
|
508
|
|
Additional
paid-in capital |
|
|
1,355,774
|
|
|
|
1,142,905
|
|
Accumulated other
comprehensive income (loss) |
|
|
(389
|
)
|
|
|
-
|
|
Distributions
in excess of retained earnings |
|
|
(45,106
|
)
|
|
|
(30,252
|
)
|
Total
shareholders' equity |
|
|
1,310,973
|
|
|
|
1,113,251
|
|
Non-controlling
interests |
|
|
4,243
|
|
|
|
3,097
|
|
Total
equity |
|
|
1,315,216
|
|
|
|
1,116,348
|
|
Total
liabilities and equity |
|
$
|
1,732,965
|
|
|
$
|
1,416,632
|
|
|
|
|
|
|
|
Pebblebrook
Hotel Trust |
Consolidated
Statements of Operations |
(In
thousands, except share and per share data) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
Hotel operating
revenues: |
|
|
|
|
|
|
|
|
Room |
|
$
|
68,596
|
|
|
$
|
56,437
|
|
|
$
|
175,083
|
|
|
$
|
127,597
|
|
Food and beverage
|
|
|
29,236
|
|
|
|
25,627
|
|
|
|
83,630
|
|
|
|
63,580
|
|
Other
operating |
|
|
6,473
|
|
|
|
5,739
|
|
|
|
17,233
|
|
|
|
12,401
|
|
Total
revenues |
|
$
|
104,305
|
|
|
$
|
87,803
|
|
|
$
|
275,946
|
|
|
$
|
203,578
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Hotel operating
expenses: |
|
|
|
|
|
|
|
|
Room |
|
$
|
17,045
|
|
|
$
|
14,477
|
|
|
$
|
45,521
|
|
|
$
|
33,984
|
|
Food and beverage
|
|
|
21,716
|
|
|
|
18,736
|
|
|
|
61,836
|
|
|
|
45,423
|
|
Other direct |
|
|
3,229
|
|
|
|
2,747
|
|
|
|
8,935
|
|
|
|
5,830
|
|
Other
indirect |
|
|
26,061
|
|
|
|
23,651
|
|
|
|
71,999
|
|
|
|
56,587
|
|
Total hotel
operating expenses |
|
|
68,051
|
|
|
|
59,611
|
|
|
|
188,291
|
|
|
|
141,824
|
|
Depreciation and
amortization |
|
|
11,055
|
|
|
|
9,037
|
|
|
|
30,742
|
|
|
|
21,426
|
|
Real estate
taxes, personal property taxes and property insurance |
|
|
4,571
|
|
|
|
3,860
|
|
|
|
12,610
|
|
|
|
8,941
|
|
Ground rent |
|
|
651
|
|
|
|
589
|
|
|
|
1,608
|
|
|
|
1,350
|
|
General and
administrative |
|
|
3,886
|
|
|
|
3,527
|
|
|
|
12,296
|
|
|
|
8,253
|
|
Hotel
acquisition costs |
|
|
514
|
|
|
|
3,903
|
|
|
|
1,340
|
|
|
|
7,344
|
|
Total operating
expenses |
|
|
88,728
|
|
|
|
80,527
|
|
|
|
246,887
|
|
|
|
189,138
|
|
Operating income
(loss) |
|
|
15,577
|
|
|
|
7,276
|
|
|
|
29,059
|
|
|
|
14,440
|
|
Interest income |
|
|
82
|
|
|
|
49
|
|
|
|
111
|
|
|
|
815
|
|
Interest expense |
|
|
(3,949
|
)
|
|
|
(3,775
|
)
|
|
|
(10,671
|
)
|
|
|
(10,077
|
)
|
Other |
|
|
-
|
|
|
|
38
|
|
|
|
-
|
|
|
|
85
|
|
Equity in
earnings (loss) of joint venture |
|
|
2,152
|
|
|
|
2,169
|
|
|
|
1,636
|
|
|
|
2,169
|
|
Income (loss)
before income taxes |
|
|
13,862
|
|
|
|
5,757
|
|
|
|
20,135
|
|
|
|
7,432
|
|
Income
tax (expense) benefit |
|
|
(1,757
|
)
|
|
|
81
|
|
|
|
(840
|
)
|
|
|
(339
|
)
|
Net income (loss)
|
|
|
12,105
|
|
|
|
5,838
|
|
|
|
19,295
|
|
|
|
7,093
|
|
Net
income (loss) attributable to non-controlling interests |
|
|
187
|
|
|
|
114
|
|
|
|
304
|
|
|
|
199
|
|
Net income (loss)
attributable to the Company |
|
|
11,918
|
|
|
|
5,724
|
|
|
|
18,991
|
|
|
|
6,894
|
|
Distributions
to preferred shareholders |
|
|
(4,456
|
)
|
|
|
(2,899
|
)
|
|
|
(13,369
|
)
|
|
|
(5,907
|
)
|
Net
income (loss) attributable to common shareholders |
|
$
|
7,462
|
|
|
$
|
2,825
|
|
|
$
|
5,622
|
|
|
$
|
987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
per-share available to common shareholders, basic and diluted |
|
$
|
0.13
|
|
|
$
|
0.05
|
|
|
$
|
0.10
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares, basic |
|
|
58,714,055
|
|
|
|
50,771,355
|
|
|
|
54,227,155
|
|
|
|
46,962,639
|
|
Weighted-average
number of common shares, diluted |
|
|
58,760,334
|
|
|
|
50,771,355
|
|
|
|
54,314,469
|
|
|
|
46,962,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pebblebrook
Hotel Trust |
Reconciliation
of Net Income (Loss) to FFO, EBITDA, Adjusted FFO and Adjusted EBITDA
|
(In
thousands, except share and per share data) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
|
Nine
months ended |
|
|
September 30, |
|
|
September 30, |
|
|
2012 |
|
2011 |
|
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
12,105
|
|
|
$
|
5,838
|
|
|
|
$
|
19,295
|
|
|
$
|
7,093
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
11,015
|
|
|
|
8,999
|
|
|
|
|
30,625
|
|
|
|
21,325
|
|
Depreciation
and amortization from joint venture |
|
|
2,469
|
|
|
|
1,169
|
|
|
|
|
7,333
|
|
|
|
1,169
|
|
FFO
|
|
$
|
25,589
|
|
|
$
|
16,006
|
|
|
|
$
|
57,253
|
|
|
$
|
29,587
|
|
Distribution
to preferred shareholders |
|
$
|
(4,456
|
)
|
|
$
|
(2,899
|
)
|
|
|
$
|
(13,369
|
)
|
|
$
|
(5,907
|
)
|
FFO
available to common share and unit holders |
|
$
|
21,133
|
|
|
$
|
13,107
|
|
|
|
$
|
43,884
|
|
|
$
|
23,680
|
|
Hotel acquisition
costs |
|
|
514
|
|
|
|
3,903
|
|
|
|
|
1,340
|
|
|
|
7,344
|
|
Ground lease
amortization |
|
|
55
|
|
|
|
54
|
|
|
|
|
164
|
|
|
|
164
|
|
Amortization of
LTIP units |
|
|
395
|
|
|
|
395
|
|
|
|
|
1,185
|
|
|
|
1,185
|
|
Management
contract termination costs |
|
|
(79
|
)
|
|
|
-
|
|
|
|
|
1,008
|
|
|
|
-
|
|
Adjusted
FFO available to common share and unit holders |
|
$
|
22,018
|
|
|
$
|
17,459
|
|
|
|
$
|
47,581
|
|
|
$
|
32,373
|
|
|
|
|
|
|
|
|
|
|
|
FFO per common
share - basic |
|
$
|
0.35
|
|
|
$
|
0.25
|
|
|
|
$
|
0.80
|
|
|
$
|
0.49
|
|
FFO per common
share - diluted |
|
$
|
0.35
|
|
|
$
|
0.25
|
|
|
|
$
|
0.79
|
|
|
$
|
0.49
|
|
Adjusted FFO
per common share - basic |
|
$
|
0.37
|
|
|
$
|
0.34
|
|
|
|
$
|
0.86
|
|
|
$
|
0.68
|
|
Adjusted FFO
per common share - diluted |
|
$
|
0.37
|
|
|
$
|
0.34
|
|
|
|
$
|
0.86
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of basic common shares and units |
|
|
59,643,154
|
|
|
|
51,700,454
|
|
|
|
|
55,156,254
|
|
|
|
47,891,738
|
|
Weighted-average
number of fully diluted common shares and units |
|
|
59,689,433
|
|
|
|
51,700,454
|
|
|
|
|
55,243,568
|
|
|
|
47,891,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
|
Nine
months ended |
|
|
September 30, |
|
|
September 30, |
|
|
2012 |
|
2011 |
|
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
12,105
|
|
|
$
|
5,838
|
|
|
|
$
|
19,295
|
|
|
$
|
7,093
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
3,949
|
|
|
|
3,775
|
|
|
|
|
10,671
|
|
|
|
10,077
|
|
Interest expense
from joint venture |
|
|
3,164
|
|
|
|
2,364
|
|
|
|
|
9,675
|
|
|
|
2,364
|
|
Income tax
expense (benefit) |
|
|
1,757
|
|
|
|
(81
|
)
|
|
|
|
840
|
|
|
|
339
|
|
Depreciation and
amortization |
|
|
11,055
|
|
|
|
9,037
|
|
|
|
|
30,742
|
|
|
|
21,426
|
|
Depreciation
and amortization from joint venture |
|
|
2,469
|
|
|
|
1,169
|
|
|
|
|
7,333
|
|
|
|
1,169
|
|
EBITDA
|
|
$
|
34,499
|
|
|
$
|
22,102
|
|
|
|
$
|
78,556
|
|
|
$
|
42,468
|
|
Hotel acquisition
costs |
|
|
514
|
|
|
|
3,903
|
|
|
|
|
1,340
|
|
|
|
7,344
|
|
Ground lease
amortization |
|
|
55
|
|
|
|
54
|
|
|
|
|
164
|
|
|
|
164
|
|
Amortization of
LTIP units |
|
|
395
|
|
|
|
395
|
|
|
|
|
1,185
|
|
|
|
1,185
|
|
Management
contract termination costs |
|
|
(79
|
)
|
|
|
-
|
|
|
|
|
1,008
|
|
|
|
-
|
|
Adjusted
EBITDA |
|
$
|
35,384
|
|
|
$
|
26,454
|
|
|
|
$
|
82,253
|
|
|
$
|
51,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This press release includes
certain non-GAAP financial measures as defined under Securities and
Exchange Commission (SEC) Rules to supplement the Company’s
consolidated financial statements presented in accordance with U.S.
generally accepted accounting principles ("GAAP").
|
|
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 measures
used by other companies. In addition, these non-GAAP measures are not
based on any comprehensive set of accounting rules or principles.
Non-GAAP 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 - Funds from
operations (“FFO”) represents net income (computed in accordance with
GAAP), 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 operating performance of its
properties 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).
|
|
The Company also evaluates its
performance by reviewing Adjusted EBITDA and Adjusted FFO, because it
believes that adjusting EBITDA and 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 EBITDA and Adjusted FFO, when
combined with the primary GAAP presentation of net income (loss), more
completely describes the Company's operating performance. The Company
adjusts EBITDA and FFO for the following items, which may occur in any
period, and refers to these measures as Adjusted EBITDA and Adjusted
FFO:
|
|
- Non-Cash Ground Rent: The
Company excludes the non-cash amortization expense of the Company's
ground lease asset.
|
- Acquisition Costs: The Company
excludes acquisition transaction costs expensed during the period
because it believes that including these costs in EBITDA and FFO does
not reflect the underlying financial performance of the Company and its
hotels.
|
- Amortization of LTIP Units: The
Company excludes the non-cash amortization of LTIP Units expensed
during the period.
|
- Management contract termination
costs: The Company excludes one-time management contract termination
costs expensed during the period because it believes that including
these costs in EBITDA and 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 EBITDA, 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. The table above is a reconciliation of the Company’s FFO and
EBITDA calculations to net income in accordance with GAAP.
|
|
|
|
Pebblebrook
Hotel Trust |
Manhattan
Collection Statements of Operations |
(Represents
the Company's 49% ownership interest in the Manhattan Collection)
|
(In
thousands, except share and per-share data) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
Nine
months ended |
|
|
September 30, |
|
September 30, |
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
REVENUES: |
|
|
|
|
|
|
|
|
Hotel operating
revenues: |
|
|
|
|
|
|
|
|
Room |
|
$
|
19,464
|
|
|
$
|
14,003
|
|
|
$
|
53,275
|
|
|
$
|
14,003
|
|
Food and beverage
|
|
|
1,402
|
|
|
|
836
|
|
|
|
4,672
|
|
|
|
836
|
|
Other
operating |
|
|
617
|
|
|
|
452
|
|
|
|
1,967
|
|
|
|
452
|
|
Total
revenues |
|
|
21,483
|
|
|
|
15,291
|
|
|
|
59,914
|
|
|
|
15,291
|
|
|
|
|
|
|
|
|
|
|
EXPENSES: |
|
|
|
|
|
|
|
|
Total hotel
expenses |
|
|
13,639
|
|
|
|
9,607
|
|
|
|
41,320
|
|
|
|
9,607
|
|
Depreciation
and amortization |
|
|
2,469
|
|
|
|
1,169
|
|
|
|
7,333
|
|
|
|
1,169
|
|
Total
operating expenses |
|
|
16,108
|
|
|
|
10,776
|
|
|
|
48,653
|
|
|
|
10,776
|
|
Operating income
(loss) |
|
|
5,375
|
|
|
|
4,515
|
|
|
|
11,261
|
|
|
|
4,515
|
|
Interest income |
|
|
32
|
|
|
|
17
|
|
|
|
99
|
|
|
|
17
|
|
Interest expense |
|
|
(3,164
|
)
|
|
|
(2,364
|
)
|
|
|
(9,675
|
)
|
|
|
(2,364
|
)
|
Other |
|
|
(91
|
)
|
|
|
1
|
|
|
|
(49
|
)
|
|
|
1
|
|
Equity
in earnings of joint venture |
|
$
|
2,152
|
|
|
$
|
2,169
|
|
|
$
|
1,636
|
|
|
$
|
2,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spread
over |
|
|
|
|
|
|
DEBT:
|
|
30-day LIBOR |
|
Loan Amount
|
|
Maturity
|
|
|
Mortgage and
mezzanine |
|
300
bps (a) |
|
$
|
274,778
|
|
|
February
2013 |
|
|
Cash and
cash equivalents |
|
|
|
|
(4,683
|
)
|
|
|
|
|
Net Debt |
|
|
|
|
270,095
|
|
|
|
|
|
Restricted
cash |
|
|
|
|
(14,602
|
)
|
|
|
|
|
Net
Debt including restricted cash |
|
|
|
$
|
255,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents the estimated
weighted-average spread of the mortgage and the mezzanine debt
outstanding.
|
|
|
|
|
Notes:
|
|
These hotel operating results
represent the Company's period of ownership for the Company's 49%
ownership interest in the Manhattan Collection. The Manhattan
Collection consists of the following six hotels: Affinia Manhattan,
Affinia 50, Affinia Dumont, Affinia Shelburne, Affinia Gardens and The
Benjamin. The hotel operating results for the Manhattan Collection only
include 49% of the results for the six properties to reflect the
Company's 49% ownership interest in the hotels.
|
|
The
information above has not been audited and has been presented only for
informational purposes. |
|
|
Pebblebrook
Hotel Trust |
Pro Forma Hotel Statistical Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
Nine
months ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Total
Portfolio |
|
|
|
|
|
|
|
|
Pro
forma Occupancy |
|
86.8%
|
|
84.7%
|
|
82.0%
|
|
78.2%
|
Increase/(Decrease)
|
|
2.5%
|
|
|
|
4.9%
|
|
|
Pro
forma ADR |
|
$215.69
|
|
$208.04
|
|
$209.98
|
|
$202.04
|
Increase/(Decrease)
|
|
3.7%
|
|
|
|
3.9%
|
|
|
Pro
forma RevPAR |
|
$187.18
|
|
$176.16
|
|
$172.26
|
|
$157.95
|
Increase/(Decrease)
|
|
6.3%
|
|
|
|
9.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
This schedule of hotel results for
the three- and nine-month periods ended September 30, includes
information from all of the hotels the Company owned as of September
30, 2012, except for the Hotel Milano and the W Los Angeles - Westwood
for both 2012 and 2011. Results for the Manhattan Collection reflect
Pebblebrook's 49% ownership interest. These hotel results for the
respective periods may include information reflecting operational
performance prior to the Company's ownership of the hotels. The Company
expects to include historical hotel results for the Hotel Milano after
the Company has owned the hotel for one year. In addition, 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. Any
differences are a result of rounding.
|
|
The
information above has not been audited and has been presented only for
comparison purposes. |
|
|
Pebblebrook
Hotel Trust |
Wholly
Owned Pro Forma Hotel Statistical Data |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
Nine
months ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Total
Portfolio |
|
|
|
|
|
|
|
|
Pro
forma Occupancy |
|
85.5%
|
|
83.4%
|
|
80.1%
|
|
76.6%
|
Increase/(Decrease)
|
|
2.4%
|
|
|
|
4.5%
|
|
|
Pro
forma ADR |
|
$203.82
|
|
$192.89
|
|
$199.68
|
|
$191.23
|
Increase/(Decrease)
|
|
5.7%
|
|
|
|
4.4%
|
|
|
Pro
forma RevPAR |
|
$174.20
|
|
$160.96
|
|
$159.89
|
|
$146.53
|
Increase/(Decrease)
|
|
8.2%
|
|
|
|
9.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
This schedule of hotel results for
the three- and nine-month periods ended September 30, includes
information from all of the hotels the Company owned as of September
30, 2012, except for the Hotel Milano, W Los Angeles - Westwood and
Pebblebrook's 49% ownership interest in the Manhattan Collection for
both 2012 and 2011. These hotel results for the respective periods may
include information reflecting operational performance prior to the
Company's ownership of the hotels. The Company expects to include
historical hotel results for the Hotel Milano after the Company has
owned the hotel for one year. In addition, 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. Any differences are a result of
rounding.
|
|
The
information above has not been audited and has been presented only for
comparison purposes. |
|
|
Pebblebrook
Hotel Trust |
Manhattan
Collection Pro Forma Hotel Statistical Data |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Total
Portfolio |
|
|
|
|
|
|
|
|
Pro
forma Occupancy |
|
93.1%
|
|
90.9%
|
|
91.0%
|
|
85.7%
|
Increase/(Decrease)
|
|
2.4%
|
|
|
|
6.2%
|
|
|
Pro
forma ADR |
|
$267.70
|
|
$278.19
|
|
$251.48
|
|
$248.94
|
Increase/(Decrease)
|
|
(3.8%)
|
|
|
|
1.0%
|
|
|
Pro
forma RevPAR |
|
$249.15
|
|
$252.84
|
|
$228.97
|
|
$213.39
|
Increase/(Decrease)
|
|
(1.5%)
|
|
|
|
7.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
This schedule of
hotel results for the three- and nine-month periods ended September 30,
includes information for the six hotels that make up the Manhattan
Collection as of September 30, 2012. 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 has been presented only for comparison
purposes. |
|
|
Pebblebrook
Hotel Trust |
Hotel
Operational Data |
Schedule
of Pro Forma Hotel Results |
(In
thousands) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
|
Pro
Forma Hotel Revenues: |
|
|
|
|
|
|
|
|
Rooms
|
|
$
|
84,425
|
|
$
|
78,711
|
|
$
|
223,832
|
|
$
|
202,789
|
Food
and beverage |
|
|
29,933
|
|
|
29,848
|
|
|
87,596
|
|
|
87,383
|
Other |
|
|
6,693
|
|
|
6,503
|
|
|
18,702
|
|
|
17,784
|
Total hotel revenues |
|
|
121,051
|
|
|
115,062
|
|
|
330,130
|
|
|
307,956
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Hotel Expenses: |
|
|
|
|
|
|
|
|
Rooms
|
|
|
21,424
|
|
|
20,588
|
|
|
60,408
|
|
|
56,869
|
Food
and beverage |
|
|
22,741
|
|
|
22,276
|
|
|
66,082
|
|
|
64,592
|
Other
direct |
|
|
3,181
|
|
|
2,940
|
|
|
9,064
|
|
|
8,234
|
General
and administrative |
|
|
9,782
|
|
|
10,545
|
|
|
28,648
|
|
|
29,567
|
Sales
and marketing |
|
|
7,895
|
|
|
7,441
|
|
|
23,309
|
|
|
21,857
|
Management
fees |
|
|
3,811
|
|
|
3,384
|
|
|
9,721
|
|
|
9,316
|
Property
operations and maintenance |
|
|
3,650
|
|
|
3,744
|
|
|
10,714
|
|
|
10,809
|
Energy
and utilities |
|
|
3,352
|
|
|
3,861
|
|
|
9,452
|
|
|
10,830
|
Property
taxes |
|
|
5,052
|
|
|
4,793
|
|
|
14,674
|
|
|
12,818
|
Other fixed expenses |
|
|
2,685
|
|
|
3,124
|
|
|
7,491
|
|
|
9,475
|
Total hotel expenses |
|
|
83,573
|
|
|
82,696
|
|
|
239,563
|
|
|
234,367
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Hotel EBITDA |
|
$
|
37,478
|
|
$
|
32,366
|
|
$
|
90,567
|
|
$
|
73,589
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Hotel EBITDA Margin |
|
|
31.0%
|
|
|
28.1%
|
|
|
27.4%
|
|
|
23.9%
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
This schedule of
hotel results for the three- and nine-month periods ended September 30,
includes information from all of the hotels the Company owned as of
September 30, 2012, except for the Hotel Milano and the W Los Angeles -
Westwood for both 2012 and 2011. Results for the Manhattan Collection
reflect the Company's 49% ownership interest. These hotel results for
the respective periods may include information reflecting operational
performance prior to the Company's ownership of the hotels. The Company
expects to include historical hotel results for the Hotel Milano after
the Company has owned the hotel for one year. In addition, 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. Any
differences are a result of rounding. |
|
The information
above has not been audited and has been presented only for comparison
purposes. |
|
|
Pebblebrook
Hotel Trust |
Hotel
Operational Data |
Schedule
of Pro Forma Wholly Owned Hotel Results |
(In
thousands) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
Pro Forma
Hotel Revenues: |
|
|
|
|
|
|
|
|
Rooms |
|
$
|
64,961
|
|
$
|
60,019
|
|
$
|
170,557
|
|
$
|
155,975
|
Food and beverage
|
|
|
28,531
|
|
|
28,682
|
|
|
82,924
|
|
|
83,670
|
Other |
|
|
6,076
|
|
|
5,860
|
|
|
16,735
|
|
|
15,822
|
Total
hotel revenues |
|
|
99,568
|
|
|
94,561
|
|
|
270,216
|
|
|
255,467
|
|
|
|
|
|
|
|
|
|
Pro Forma
Hotel Expenses: |
|
|
|
|
|
|
|
|
Rooms |
|
|
15,985
|
|
|
15,244
|
|
|
44,104
|
|
|
41,930
|
Food and beverage
|
|
|
21,326
|
|
|
21,039
|
|
|
61,602
|
|
|
60,599
|
Other direct |
|
|
3,068
|
|
|
2,829
|
|
|
8,734
|
|
|
7,900
|
General and
administrative |
|
|
8,135
|
|
|
8,704
|
|
|
23,296
|
|
|
24,226
|
Sales and
marketing |
|
|
6,726
|
|
|
6,250
|
|
|
19,757
|
|
|
18,475
|
Management fees |
|
|
3,116
|
|
|
2,751
|
|
|
7,836
|
|
|
7,691
|
Property
operations and maintenance |
|
|
2,931
|
|
|
3,015
|
|
|
8,578
|
|
|
8,696
|
Energy and
utilities |
|
|
2,686
|
|
|
3,167
|
|
|
7,440
|
|
|
8,872
|
Property taxes |
|
|
3,372
|
|
|
3,064
|
|
|
9,702
|
|
|
8,143
|
Other
fixed expenses |
|
|
2,588
|
|
|
2,917
|
|
|
7,194
|
|
|
8,825
|
Total
hotel expenses |
|
|
69,933
|
|
|
68,980
|
|
|
198,243
|
|
|
195,357
|
|
|
|
|
|
|
|
|
|
Pro
Forma Hotel EBITDA |
|
$
|
29,635
|
|
$
|
25,581
|
|
$
|
71,973
|
|
$
|
60,110
|
|
|
|
|
|
|
|
|
|
Pro Forma Hotel
EBITDA Margin |
|
|
29.8%
|
|
|
27.1%
|
|
|
26.6%
|
|
|
23.5%
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
This schedule of
hotel results for the three- and nine-month periods ended September 30,
includes information from all of the hotels the Company owned as of
September 30, 2012, except for the Hotel Milano, W Los Angeles -
Westwood and Pebblebrook's 49% ownership interest in the Manhattan
Collection for both 2012 and 2011. These hotel results for the
respective periods may include information reflecting operational
performance prior to the Company's ownership of the hotels. The Company
expects to include historical hotel results for the Hotel Milano after
the Company has owned the hotel for one year. In addition, 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. Any
differences are a result of rounding. |
|
The information
above has not been audited and has been presented only for comparison
purposes. |
|
|
Pebblebrook
Hotel Trust |
Hotel
Operational Data |
Schedule
of Pro Forma Manhattan Collection Hotel Results |
(In
thousands) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended |
|
|
Nine
months ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
Hotel Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
|
$
|
19,464
|
|
|
$
|
18,692
|
|
|
$
|
53,275
|
|
|
$
|
46,814
|
Food and beverage
|
|
|
|
1,402
|
|
|
|
1,166
|
|
|
|
4,672
|
|
|
|
3,713
|
Other |
|
|
|
617
|
|
|
|
643
|
|
|
|
1,967
|
|
|
|
1,962
|
Total
hotel revenues |
|
|
|
21,483
|
|
|
|
20,501
|
|
|
|
59,914
|
|
|
|
52,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
Hotel Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rooms |
|
|
|
5,439
|
|
|
|
5,344
|
|
|
|
16,304
|
|
|
|
14,939
|
Food and beverage
|
|
|
|
1,415
|
|
|
|
1,237
|
|
|
|
4,480
|
|
|
|
3,993
|
Other direct |
|
|
|
113
|
|
|
|
111
|
|
|
|
330
|
|
|
|
334
|
General and
administrative |
|
|
|
1,647
|
|
|
|
1,841
|
|
|
|
5,352
|
|
|
|
5,341
|
Sales and
marketing |
|
|
|
1,169
|
|
|
|
1,191
|
|
|
|
3,552
|
|
|
|
3,382
|
Management fees |
|
|
|
695
|
|
|
|
633
|
|
|
|
1,885
|
|
|
|
1,625
|
Property
operations and maintenance |
|
|
|
719
|
|
|
|
729
|
|
|
|
2,136
|
|
|
|
2,113
|
Energy and
utilities |
|
|
|
666
|
|
|
|
694
|
|
|
|
2,012
|
|
|
|
1,958
|
Property taxes |
|
|
|
1,680
|
|
|
|
1,729
|
|
|
|
4,972
|
|
|
|
4,675
|
Other
fixed expenses |
|
|
|
97
|
|
|
|
207
|
|
|
|
297
|
|
|
|
650
|
Total
hotel expenses |
|
|
|
13,640
|
|
|
|
13,716
|
|
|
|
41,320
|
|
|
|
39,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro
Forma Hotel EBITDA |
|
|
$
|
7,843
|
|
|
$
|
6,785
|
|
|
$
|
18,594
|
|
|
$
|
13,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Hotel
EBITDA Margin |
|
|
|
36.5%
|
|
|
|
33.1%
|
|
|
|
31.0%
|
|
|
|
25.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
This schedule of
hotel results for the three- and nine-month periods ended September 30,
reflects the Company's 49% pro rata interest and include information
for the six hotels that comprise the Manhattan Collection as of
September 30, 2012. These hotel results may reflect the operational
performance prior to the Company's ownership interest in the hotels. In
addition, 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. Any differences are a result of rounding. |
|
The information
above has not been audited and has been presented only for comparison
purposes. |
|
|
|
|
Pebblebrook
Hotel Trust |
Pro
Forma Property Inclusion Reference Table |
|
|
|
|
|
|
|
|
|
Hotels
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
|
|
|
|
|
|
|
|
DoubleTree by
Hilton Bethesda |
|
X |
|
X |
|
X |
|
X |
Sir Francis Drake
|
|
X |
|
X |
|
X |
|
X |
InterContinental
Buckhead |
|
X |
|
X |
|
X |
|
X |
Hotel Monaco
Washington, DC |
|
X |
|
X |
|
X |
|
X |
Grand Hotel
Minneapolis |
|
X |
|
X |
|
X |
|
X |
Skamania Lodge |
|
X |
|
X |
|
X |
|
X |
Sheraton Delfina
Santa Monica |
|
X |
|
X |
|
X |
|
X |
Sofitel
Philadelphia |
|
X |
|
X |
|
X |
|
X |
Argonaut Hotel |
|
X |
|
X |
|
X |
|
X |
Hotel Monaco
Seattle |
|
X |
|
X |
|
X |
|
X |
Westin Gaslamp
Quarter San Diego |
|
X |
|
X |
|
X |
|
X |
Mondrian Los
Angeles |
|
X |
|
X |
|
X |
|
X |
Viceroy Miami |
|
X |
|
X |
|
X |
|
X |
W Boston |
|
X |
|
X |
|
X |
|
X |
Manhattan
Collection |
|
X |
|
X |
|
X |
|
X |
Hotel Milano |
|
|
|
|
|
|
|
|
Hotel Vintage
Park Seattle |
|
|
|
|
|
X |
|
X |
Hotel Vintage
Plaza Portland |
|
|
|
|
|
X |
|
X |
W Los Angeles -
Westwood |
|
|
|
|
|
|
|
X |
Hotel Palomar San
Francisco |
|
|
|
|
|
|
|
X |
|
|
|
|
|
|
|
|
|
|
Notes:
|
A property marked
with an "X" in a specific quarter denotes that the pro forma operating
results of that property are included in the Pro Forma Hotel
Statistical Data, Schedule of Pro Forma Hotel Results and the 2012
Outlook for the respective calendar quarter in 2012 and 2011. |
|
The Company’s
third quarter Pro forma RevPAR, RevPAR Growth, ADR, Occupancy, Hotel
Revenues, Hotel Expenses, Hotel EBITDA and Hotel EBITDA Margin include
all of the hotels the Company owned as of September 30, 2012, except
for the Hotel Milano and W Los Angeles-Westwood. Results for the
Manhattan Collection reflect the Company's 49% ownership interest. The
Company expects to include historical operating results for the Hotel
Milano after the Company has owned the hotel for one year. Operating
statistics and financial results include periods prior to the Company’s
ownership of the hotels. |
|
The Company's estimates and
assumptions for Pro forma RevPAR, RevPAR Growth, ADR, Occupancy, Hotel
Revenues, Hotel Expenses, Hotel EBITDA and Hotel EBITDA Margin for the
Company's 2012 Outlook include the hotels owned as of October 25, 2012,
including the anticipated acquisition of the Hotel Palomar San
Francisco. These operating statistics and financial results may include
periods prior to the Company’s ownership of the hotels. The hotel
operating estimates and assumptions for the Manhattan Collection
included in the Company's 2012 Outlook only reflect the Company's 49%
ownership interest in the hotels.
|
|
|
|
|
Pebblebrook
Hotel Trust |
Historical
Hotel Pro Forma Operating Data |
(In
thousands, except Occupancy, ADR and RevPAR) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical
Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Full Year |
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
Occupancy |
|
71.2%
|
|
80.1%
|
|
84.9%
|
|
77.7%
|
|
78.5%
|
Pro forma ADR |
|
$188
|
|
$208
|
|
$211
|
|
$216
|
|
$206
|
Pro forma RevPAR |
|
$134
|
|
$167
|
|
$179
|
|
$168
|
|
$162
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Hotel
Revenues |
|
$98.6
|
|
$118.7
|
|
$123.1
|
|
$122.1
|
|
$462.6
|
Pro forma Hotel
EBITDA |
|
$15.3
|
|
$30.8
|
|
$34.5
|
|
$33.4
|
|
$113.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
|
|
|
|
|
2012
|
|
2012
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
Occupancy |
|
75.0%
|
|
85.3%
|
|
86.9%
|
|
|
|
|
Pro forma ADR |
|
$193
|
|
$219
|
|
$219
|
|
|
|
|
Pro forma RevPAR |
|
$145
|
|
$187
|
|
$190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Hotel
Revenues |
|
$105.3
|
|
$129.1
|
|
$129.3
|
|
|
|
|
Pro forma Hotel
EBITDA |
|
$19.6
|
|
$39.1
|
|
$39.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
These historical
hotel operating results include information from the following hotels:
DoubleTree by Hilton Bethesda-Washington DC; Sir Francis Drake;
InterContinental Buckhead; Hotel Monaco Washington, DC; Grand Hotel
Minneapolis; Skamania Lodge; Sheraton Delfina; Sofitel Philadelphia;
Argonaut Hotel; the Westin Gaslamp Quarter San Diego; Hotel Monaco
Seattle; Mondrian Los Angeles; Viceroy Miami; W Boston; Hotel Vintage
Park Seattle; Hotel Vintage Plaza Portland; W Los Angeles - Westwood;
and the 6 hotel properties in the Manhattan Collection. These operating
results exclude those of the Hotel Milano. The hotel operating results
for the Manhattan Collection only includes 49% of the results for the 6
properties to reflect the Company's 49% ownership interest in the
hotels. These historical operating results include periods prior to the
Company's ownership of the hotels. The Company expects to include
historical operating results for Hotel Milano after the Company has
owned the hotel for one year. The information above does not reflect
the Company's corporate general and administrative expense, interest
expense, property acquisition costs, depreciation and amortization,
taxes and other expenses. |
|
The information
above has not been audited and has been presented only for comparison
purposes. |
|
|
|
Pebblebrook
Hotel Trust |
Historical
Wholly Owned Hotel Pro Forma Operating Data |
(In
thousands, except Occupancy, ADR and RevPAR) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical
Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Full Year |
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
Occupancy |
|
69.2%
|
|
79.3%
|
|
83.7%
|
|
74.8%
|
|
76.8%
|
Pro forma ADR |
|
$187
|
|
$195
|
|
$197
|
|
$193
|
|
$193
|
Pro forma RevPAR |
|
$129
|
|
$155
|
|
$165
|
|
$144
|
|
$148
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Hotel
Revenues |
|
$85.3
|
|
$100.0
|
|
$102.6
|
|
$97.0
|
|
$385.0
|
Pro forma Hotel
EBITDA |
|
$14.3
|
|
$25.0
|
|
$27.7
|
|
$22.9
|
|
$89.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
|
|
|
|
|
2012
|
|
2012
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
Occupancy |
|
72.6%
|
|
83.7%
|
|
85.7%
|
|
|
|
|
Pro forma ADR |
|
$191
|
|
$205
|
|
$208
|
|
|
|
|
Pro forma RevPAR |
|
$139
|
|
$172
|
|
$178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Hotel
Revenues |
|
$89.5
|
|
$106.5
|
|
$107.8
|
|
|
|
|
Pro forma Hotel
EBITDA |
|
$17.5
|
|
$30.5
|
|
$31.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
These historical
hotel operating results include information from the following hotels:
DoubleTree by Hilton Bethesda-Washington DC; Sir Francis Drake;
InterContinental Buckhead; Hotel Monaco Washington, DC; Grand Hotel
Minneapolis; Skamania Lodge; Sheraton Delfina; Sofitel Philadelphia;
Argonaut Hotel; the Westin Gaslamp Quarter San Diego; Hotel Monaco
Seattle; Mondrian Los Angeles; Viceroy Miami; W Boston; Hotel Vintage
Park Seattle; Hotel Vintage Plaza Portland; and W Los Angeles -
Westwood. These operating results exclude those of the Hotel Milano and
Pebblebrook's 49% interest in the 6 hotel Manhattan Collection. These
historical operating results include periods prior to the Company's
ownership of the hotels. The Company expects to include historical
operating results for Hotel Milano after the Company has owned the
hotel for one year. The information above does not reflect the
Company's corporate general and administrative expense, interest
expense, property acquisition costs, depreciation and amortization,
taxes and other expenses. |
|
The information
above has not been audited and has been presented only for comparison
purposes. |
|
|
Pebblebrook
Hotel Trust |
Historical
Manhattan Collection Pro Forma Operating Data |
(In
thousands, except Occupancy, ADR and RevPAR) |
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Historical
Operating Data: |
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
|
Full Year |
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
Occupancy |
|
81.6%
|
|
84.5%
|
|
90.9%
|
|
92.5%
|
|
87.5%
|
Pro forma ADR |
|
$193
|
|
$270
|
|
$278
|
|
$310
|
|
$266
|
Pro forma RevPAR |
|
$158
|
|
$228
|
|
$253
|
|
$287
|
|
$233
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Hotel
Revenues |
|
$13.3
|
|
$18.7
|
|
$20.5
|
|
$25.1
|
|
$77.6
|
Pro forma Hotel
EBITDA |
|
$1.0
|
|
$5.7
|
|
$6.8
|
|
$10.5
|
|
$24.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
|
|
|
|
|
2012
|
|
2012
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma
Occupancy |
|
86.9%
|
|
93.2%
|
|
93.1%
|
|
|
|
|
Pro forma ADR |
|
$201
|
|
$282
|
|
$268
|
|
|
|
|
Pro forma RevPAR |
|
$175
|
|
$263
|
|
$249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro forma Hotel
Revenues |
|
$15.8
|
|
$22.7
|
|
$21.5
|
|
|
|
|
Pro forma Hotel
EBITDA |
|
$2.1
|
|
$8.6
|
|
$7.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
These historical
hotel operating results include information from the 6 hotel properties
in the Manhattan Collection. The hotel operating results for the
Manhattan Collection only include 49% of the results for the 6
properties to reflect the Company's 49% ownership interest in the
hotels. These historical operating results include periods prior to the
Company's ownership of the hotels. The information above does not
reflect the Company's corporate general and administrative expense,
interest expense, property acquisition costs, depreciation and
amortization, taxes and other expenses. |
|
The information
above has not been audited and has been presented only for comparison
purposes. |
|