\n| \n \n“Our first-quarter results were propelled by strong occupancy gains and elevated ancillary revenue at our resorts and recently redeveloped properties, which continue to ramp up and capture additional market share. In our urban markets, Washington, D.C. benefited from inauguration-related activities, while San Francisco generated strong results driven by rising business and leisure demand and a healthy convention calendar. Chicago and Portland also performed well, as these previously slower-to-recover markets continue to improve.\n<\/p>\n \n\u00a0\n<\/p>\n \nOur first-quarter Same-Property Hotel EBITDA beat was primarily driven by a steadfast focus on driving lasting efficiencies across our hotel operating models and disciplined cost control efforts. Same-Property Total Expense growth was limited to just 3.7 percent\u2014significantly below the low end of our 5.0 percent outlook\u2014highlighting our hotel teams\u2019 ability to relentlessly generate efficiencies and quickly adapt to changes in the operating environment.\n<\/p>\n \n\u00a0\n<\/p>\n \nAs we look to the second half of the year, we are taking a more cautious stance due to the growing macroeconomic uncertainty and the potential impact on both domestic and international travel. We have modestly reduced and widened our full year 2025 outlook to reflect potential softness in business, leisure and government-related demand. While consumer sentiment has declined, we have yet to see a meaningful shift in actual travel trends, aside from reductions in government-related and Canadian travel. Nonetheless, persistent volatility is making near-term forecasting more challenging. We remain focused on what we can control\u2014adjusting our operating strategies, driving revenues, and maintaining rigorous cost discipline to safeguard profitability as conditions evolve.\u201d\n<\/p>\n \n\u00a0\n<\/p>\n – Jon E. Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust<\/b><\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n First Quarter Highlights<\/b><\/p>\n\n\n | \n | \n\n First Quarter<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n Same-Property and Corporate Highlights<\/b><\/p>\n<\/td>\n | | \n\n 2025<\/b><\/p>\n<\/td>\n | | \n\n 2024<\/b><\/p>\n<\/td>\n | | \n\n Variance<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n\n \n($ in millions except per share and RevPAR data)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nNet loss\n<\/p>\n<\/td>\n | | \n\n \n($32.2\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | | \n\n \n($27.5\n<\/p>\n<\/td>\n | \n \n)\n<\/p>\n<\/td>\n | | \n\n NM<\/i><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \nSame-Property RevPAR(1,2)<\/sup><\/p>\n<\/td>\n | \n\n \n$187\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$187\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 0.0<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSame-Property RevPAR excluding LA properties(1,2,3)<\/sup><\/p>\n<\/td>\n | \n\n \n$191\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$182\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 4.9<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSame-Property Total RevPAR(1,2)<\/sup><\/p>\n<\/td>\n | \n\n \n$301\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$295\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 2.1<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSame-Property Total RevPAR excluding LA properties(1,2,3)<\/sup><\/p>\n<\/td>\n | \n\n \n$317\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$299\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 6.0<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSame-Property Room Revenues(1,2)<\/sup><\/p>\n<\/td>\n | \n\n \n$196.0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$198.1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n (1.1<\/i><\/p>\n<\/td>\n | \n %)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSame-Property Total Revenues(1,2)<\/sup><\/p>\n<\/td>\n | \n\n \n$316.4\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$313.2\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 1.0<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSame-Property Total Expenses(1,2)<\/sup><\/p>\n<\/td>\n | \n\n \n$254.1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$245.1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 3.7<\/i><\/p>\n<\/td>\n | \n %<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nSame-Property Hotel EBITDA(1,2)<\/sup><\/p>\n<\/td>\n | \n\n \n$62.3\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$68.1\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n (8.6<\/i><\/p>\n<\/td>\n | \n %)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted EBITDAre<\/i>(1)<\/sup><\/p>\n<\/td>\n | \n\n \n$56.6\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$60.8\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n (6.9<\/i><\/p>\n<\/td>\n | \n %)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted FFO(1)<\/sup><\/p>\n<\/td>\n | \n\n \n$18.7\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$25.0\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n (25.0<\/i><\/p>\n<\/td>\n | \n %)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted FFO per diluted share(1)<\/sup><\/p>\n<\/td>\n | \n\n \n$0.16\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n$0.21\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n (23.8<\/i><\/p>\n<\/td>\n | \n %)<\/i><\/p>\n<\/td>\n<\/tr>\n\n | \n | \n | \n | \n | \n | \n | \n | \n | \n\u00a0<\/td>\n<\/tr>\n | \n| \n NM = Not Meaningful<\/i><\/p>\n\n- 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 (\u201cEBITDA\u201d), EBITDA for Real Estate (\u201cEBITDA<\/i>re<\/i>\u201d), Adjusted EBITDA<\/i>re<\/i>, Funds from Operations (\u201cFFO\u201d), FFO per diluted share, Adjusted FFO, and Adjusted FFO per diluted share.<\/i><\/li>\n
- Includes information for all the hotels the Company owned as of March 31, 2025, except for the following:<\/i>\n
\n- Newport Harbor Island Resort.<\/i><\/li>\n<\/ul>\n<\/li>\n
- Includes information for all the hotels the Company owned as of March 31, 2025, except for the following:<\/i>\n
\n- Newport Harbor Island Resort<\/i><\/li>\n
- LA Properties: Chamberlain West Hollywood Hotel, Hotel Palomar Los Angeles Beverly Hills, Hotel Ziggy, Hyatt Centric Delfina Santa Monica, Le Parc at Melrose, Mondrian Los Angeles, Montrose at Beverly Hills, Viceroy Santa Monica Hotel, and W Los Angeles \u2013 West Beverly Hills.<\/i><\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/td>\n<\/tr>\n<\/table>\n
\n\u201cWe are encouraged by our first-quarter performance, particularly given the negative disruptions caused by the Los Angeles fires, which impacted our nine hotels in the market, and the renovation and brand conversion at Hyatt Centric Delfina Santa Monica, which is now substantially complete,\u201d said Mr. Bortz. \u201cIn fact, excluding our LA portfolio, first quarter Same-Property Total RevPAR climbed a strong 6%, and Same-Property Hotel EBITDA was essentially flat to last year, highlighting the underlying strength of the portfolio stemming from gains being achieved by our recently redeveloped properties, including many of our resorts, and healthy improvement across our hotels in previously slower-to-recover urban markets.\u201d\n<\/p>\n Update on the Impact of the Los Angeles Fires<\/b><\/p>\n \nIn the first quarter, the Company\u2019s nine Los Angeles-area hotels\u2014spanning from West Hollywood to Santa Monica\u2014experienced a significant increase in business cancellations and a material slowdown in bookings due to the fallout from the January fires. Although the disruption to demand has continued into the second quarter, bookings are recovering and the impact has been less severe than anticipated at the time of the Company\u2019s fourth quarter earnings release on February 26, 2025.\n<\/p>\n \nThe Company currently estimates the following impacts from the Los Angeles fires:\n<\/p>\n Estimated Negative Impact (vs. February 26, 2025 estimates)<\/i>:<\/span><\/b><\/p>\n\n- Same-Property RevPAR<\/b>\n
\n- \nQ1: ~330 bps (vs. 380 bps)<\/i><\/li>\n
- \nQ2: ~50 bps (vs. 120 bps)<\/i><\/li>\n
- \nFY 2025: ~85 bps (vs. 115 bps)<\/i><\/li>\n<\/ul>\n<\/li>\n
- Same-Property Total RevPAR<\/b>\n
\n- \nQ1: ~280 bps (vs. 320 bps)<\/i><\/li>\n
- \nQ2: ~40 bps (vs. 100 bps)<\/i><\/li>\n
- \nFY 2025: ~75 bps (vs. 100 bps)<\/i><\/li>\n<\/ul>\n<\/li>\n
- Same-Property Hotel EBITDA<\/b>\n
\n- \nQ1: ~$5.5M (vs. $6.5M)<\/i><\/li>\n
- \nQ2: ~$1.5M (vs. $2.5M)<\/i><\/li>\n
- \nFY 2025: ~$7.0M (vs. $9.0M)<\/i><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Update on LaPlaya Recovery from Named Storms<\/b><\/p>\n \nLaPlaya Beach Resort & Club (\u201cLaPlaya\u201d), a 189-room luxury waterfront resort in Naples, Florida, has made significant progress in restoring areas damaged by Hurricanes Helene (September 26, 2024) and Milton (October 9, 2024). The restoration and previous asset fortification efforts undertaken by the Company have been highly effective. Restoration activities at the resort are substantially complete, except for the 20 ground-floor rooms in the Beach House building, which remain on track for substantial completion later this quarter.\n<\/p>\n \nDuring the first quarter, LaPlaya\u2019s Total RevPAR surged 22% over the same time last year, while hotel EBITDA climbed almost 30%. First-quarter hotel EBITDA also surpassed 2019 by 26.2% or $2.2 million. For Q1 through Q3 2025, LaPlaya is included in the Company\u2019s Same-Property metrics, but it will be excluded in the fourth quarter for both 2025 and 2024. The Company also recorded $4.3 million in business interruption insurance (\u201cBI\u201d) income related to October 2024 through February 2025 losses, and forecasts an additional $1.7 million in BI income in Q2 2025 and $2.5 million in Q3 2025\u2014bringing total expected BI income for 2025 to $8.5 million, which is $2.5 million higher than the Company\u2019s previous outlook. Although this BI income contributes to Adjusted EBITDAre<\/i> and Adjusted FFO, it is excluded from Same-Property Hotel EBITDA.\n<\/p>\n Capital Investments and Strategic Property Redevelopments<\/b><\/p>\n \nDuring the first quarter, the Company invested $16.7 million in capital improvements across its portfolio, excluding investments for LaPlaya\u2019s repair and restoration. The $15.0 million renovation of the newly rebranded Hyatt Centric Delfina Santa Monica was substantially completed in April. With the Company\u2019s vast number of transformative projects now substantially complete, its multi-year strategic redevelopment program is effectively concluded. The only remaining large-scale opportunity is the potential conversion of Paradise Point Resort to a Margaritaville Island Resort.\n<\/p>\n \nAs a result, capital investments are expected to be significantly lower this year and for the next few years. In 2025, the Company anticipates investing $65 to $75 million, mostly for routine capital maintenance, replacements, and minor property upgrades and ROI projects, in addition to the Hyatt Centric refresh.\n<\/p>\n Common Share Repurchases<\/b><\/p>\n \nThe Company has repurchased approximately 1.3 million common shares in 2025 at an average price of $11.02 per share. This includes approximately 1.2 million shares in the first quarter at an average price of $11.22, and approximately 0.1 million shares in the second quarter at an average price of $8.94. On a cumulative basis since October 2022, the Company has repurchased more than 13 million common shares \u2013 approximately 10% of its outstanding shares \u2013 at an average price of $14.07 per share. This figure represents an approximate 44% discount to the midpoint of the Company\u2019s most recently published Net Asset Value (\u201cNAV\u201d) per share.\n<\/p>\n Balance Sheet<\/b><\/p>\n \nAs of March 31, 2025, Pebblebrook\u2019s net debt to trailing 12-month corporate EBITDA was 5.8x. The Company held $218.2 million in cash, cash equivalents and restricted cash, and maintained an additional $642.6 million of undrawn availability on its $650 million senior unsecured revolving credit facility. The weighted-average maturity of the Company\u2019s debt is approximately 2.8 years, with a weighted-average interest rate of 4.2%. Of the $2.3 billion in consolidated debt and convertible notes, 91% is effectively fixed at a 4.0% rate, and the same proportion is unsecured. Pebblebrook has no significant maturities until December 2026.\n<\/p>\n Common and Preferred Dividends<\/b><\/p>\n \nOn March 14, 2025, 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:\n<\/p>\n \n- \n$0.39844 per 6.375% Series E Cumulative Redeemable Preferred Share;\n<\/li>\n
- \n$0.39375 per 6.3% Series F Cumulative Redeemable Preferred Share;\n<\/li>\n
- \n$0.39844 per 6.375% Series G Cumulative Redeemable Preferred Share; and\n<\/li>\n
- \n$0.35625 per 5.7% Series H Cumulative Redeemable Preferred Share.\n<\/li>\n<\/ul>\n
Update on Curator Hotel & Resort Collection<\/b><\/p>\n \nCurator Hotel & Resort Collection (\u201cCurator\u201d) is a curated collection of experientially focused small brands and independent lifestyle hotels and resorts worldwide founded by Pebblebrook in collaboration with several industry-leading independent lifestyle hotel operators. As of March 31, 2025, Curator encompassed 85 member hotels and resorts and 117 master service agreements with preferred vendor partners. These agreements deliver preferred pricing, enhanced operating terms, and early access to curated cutting-edge technologies\u2014benefits that extend to Pebblebrook\u2019s own properties. Curator’s mission is to empower lifestyle hotels and resorts through its best-in-class agreements, services, and technology, amplifying their independent brands and unique guest experiences.\n<\/p>\n Q2 & 2025 Outlook<\/b><\/p>\n \nThe Company is updating its full-year 2025 outlook to reflect increased macro-economic uncertainty and revised expectations for the second half of the year. The outlook for the first half, in total, remains largely in-line with the Company\u2019s prior outlook. The revised outlook assumes no material adverse impacts from macroeconomic conditions or weather-related events\u2014factors that remain subject to significant volatility and unpredictability.\n<\/p>\n The Company\u2019s 2025 Outlook is as follows:<\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 2025 Outlook<\/span><\/b><\/p>\n\nAs of 5\/1\/25\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance to Prior Outlook<\/span><\/i><\/b><\/p>\nVar to 2\/26\/25<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n($ in millions, except per share data)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Low<\/b><\/p>\n<\/td>\n | | \n\n High<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Low<\/i><\/b><\/p>\n<\/td>\n | | \n\n High<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n \nNet loss\n<\/p>\n<\/td>\n | | \n\n \n($30.2)\n<\/p>\n<\/td>\n | | \n\n \n($9.7)\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($14.7)<\/i><\/p>\n<\/td>\n | | \n\n ($8.2)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted EBITDAre<\/i><\/p>\n<\/td>\n | | \n\n \n$327.5\n<\/p>\n<\/td>\n | | \n\n \n$348.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($14.0)<\/i><\/p>\n<\/td>\n | | \n\n ($7.0)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted FFO\n<\/p>\n<\/td>\n | | \n\n \n$170.0\n<\/p>\n<\/td>\n | | \n\n \n$190.5\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($12.0)<\/i><\/p>\n<\/td>\n | | \n\n ($5.5)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \nAdjusted FFO per diluted share\n<\/p>\n<\/td>\n | | \n\n \n$1.42\n<\/p>\n<\/td>\n | | \n\n \n$1.59\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n ($0.08)<\/i><\/p>\n<\/td>\n | | \n\n ($0.03)<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n This 2025 Outlook is based, in part, on the following estimates and assumptions:<\/b><\/p>\n\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n 2025 Outlook<\/span><\/b><\/p>\n\nAs of 5\/1\/25\n<\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Variance to Prior Outlook<\/span><\/i><\/b><\/p>\nVar to 2\/26\/25<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n \n($ in millions, except per share data)\n<\/p>\n<\/td>\n<\/tr>\n | \n| \n \n\u00a0\n<\/p>\n<\/td>\n | | \n\n Low<\/b><\/p>\n<\/td>\n | | \n\n High<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n Low<\/i><\/b><\/p>\n<\/td>\n | | \n\n High<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n US Hotel Industry RevPAR Growth Rate<\/i><\/p>\n<\/td>\n | | \n\n (1.0%)<\/i><\/p>\n<\/td>\n | | \n\n 1.0%<\/i><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (2.0%)<\/i><\/p>\n<\/td>\n | | \n\n (2.0%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Same-Property RevPAR variance vs. 2024<\/i><\/p>\n<\/td>\n | | \n\n (1.5%)<\/i><\/p>\n<\/td>\n | | \n\n 1.5%<\/i><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (2.5%)<\/i><\/p>\n<\/td>\n | | \n\n (1.5%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Same-Property Total RevPAR variance vs. 2024<\/i><\/p>\n<\/td>\n | | \n\n (0.5%)<\/i><\/p>\n<\/td>\n | | \n\n 2.3%<\/i><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (2.3%)<\/i><\/p>\n<\/td>\n | | \n\n (1.4%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n Same-Property Total Revenue variance vs. 2024<\/i><\/p>\n<\/td>\n | | \n\n (0.8%)<\/i><\/p>\n<\/td>\n | | \n\n 2.0%<\/i><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n (2.3%)<\/i><\/p>\n<\/td>\n | | \n\n (1.5%)<\/i><\/p>\n<\/td>\n<\/tr>\n\n| \n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |