{"id":906437,"date":"2025-11-05T21:10:43","date_gmt":"2025-11-06T02:10:43","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/pebblebrook-hotel-trust-reports-third-quarter-2025-results\/"},"modified":"2025-11-05T21:10:43","modified_gmt":"2025-11-06T02:10:43","slug":"pebblebrook-hotel-trust-reports-third-quarter-2025-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/pebblebrook-hotel-trust-reports-third-quarter-2025-results\/","title":{"rendered":"Pebblebrook Hotel Trust Reports Third Quarter 2025 Results"},"content":{"rendered":"

<\/p>\n

Pebblebrook Hotel Trust Reports Third Quarter 2025 Results<\/b><\/p>\n

BETHESDA, Md.–(BUSINESS WIRE<\/a>)–
\nPebblebrook Hotel Trust (NYSE: PEB):\n<\/p>\n\n\n\n\n\n\n\n\n\n
\n

Q3<\/b><\/p>\n

FINANCIAL<\/b><\/p>\n

HIGHLIGHTS<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n

    \n
  • Net loss:<\/b> ($32.4) million\n<\/li>\n
  • Same-Property Hotel EBITDA:<\/b> $105.4 million, in line with the midpoint of the Company\u2019s outlook, driven by strong demand in San Francisco and continued exceptional expense management\n<\/li>\n
  • Adjusted EBITDAre<\/i>:<\/b> $99.2 million, $2.2 million above the midpoint of the Company\u2019s outlook\n<\/li>\n
  • Adjusted FFO per diluted share:<\/b> $0.51, $0.03 above the midpoint of the Company\u2019s outlook\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

Q3 HOTEL<\/b><\/p>\n

OPERATING<\/b><\/p>\n

TRENDS<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n

    \n
  • Same-Property Total RevPAR: <\/b>Decreased 1.5% vs. Q3 2024, as occupancy increased nearly 190 basis points and ADR declined 5.4%; Non-room Revenue rose a healthy 1.7%\n<\/li>\n
  • Top Market Performance:<\/b> San Francisco achieved 8.3% RevPAR growth, and Chicago increased 2.3%, reflecting healthy growth in convention, corporate, and leisure demand; both markets outperformed expectations and continued their steady recoveries\n<\/li>\n
  • Resorts Steady; Urban Markets Mixed: <\/b>Resort Total RevPAR improved 0.7%, while Urban Total RevPAR declined 2.7%, reflecting resilient resort demand offset by disruptions in Los Angeles and Washington, D.C., and lighter year-over-year convention calendars in Boston and San Diego\n<\/li>\n
  • Operating Expenses Well-Controlled:<\/b> Same-Property Hotel Expenses before fixed costs increased just 0.4%, highlighting Pebblebrook\u2019s continued success executing its strategic productivity and efficiency program\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

CAPEX &<\/b><\/p>\n

BALANCE<\/b><\/p>\n

SHEET<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n

    \n
  • Capital Investments:<\/b> $14.2 million in Q3; on track for $65 to $75 million for the full year\n<\/li>\n
  • Convertible Notes Financing:<\/b> Completed $400 million private offering of 1.625% Convertible Notes due 2030, with proceeds used to retire an equal amount of the 1.75% Convertible Notes due 2026 at a 2% discount to par \u2014 enhancing liquidity, lowering borrowing costs, and extending maturities\n<\/li>\n
  • Balance Sheet:<\/b> Ended Q3 with $232 million in cash and restricted cash, a sector-low 4.1% weighted-average interest rate, and net debt to trailing 12-month corporate EBITDA of 6.1x\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

2025<\/b><\/p>\n

OUTLOOK<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n

    \n
  • Net loss: <\/b>($67.5) to ($58.5) million\n<\/li>\n
  • Same-Property Total RevPAR Growth Rate:<\/b> (0.1%) to 1.1%; midpoint reduced by 30 bps\n<\/li>\n
  • Adjusted EBITDAre<\/i>:<\/b> $332.5 to $341.5 million; midpoint reduced by $3.0 million\n<\/li>\n
  • Adjusted FFO per diluted share:<\/b> $1.50 to $1.57; range narrowed, midpoint unchanged\u00a0\n<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n

Note:<\/i><\/p>\n<\/td>\n

\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 used in the table above and elsewhere in this press release. The sector-low weighted average interest rate is based on Pebblebrook\u2019s analysis of EDGAR filings to date for all listed lodging REITs.<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n
\u00a0<\/td>\n\n

\u201c<\/b>Our third-quarter results were in line with our outlook, reflecting strong operating execution and continued outperformance in driving portfolio-wide operating efficiencies in a challenging and uncertain environment. San Francisco once again led the portfolio, fueled by robust citywide conventions and healthy business and leisure transient demand growth. Chicago also exceeded expectations, with broad-based strength across group, corporate, and leisure segments. As anticipated, the quarter\u2019s results were negatively impacted by the year-over-year timing shift of the Jewish holidays and ongoing softness in group attendance.
\n
\u00a0\n<\/p>\n

\n\u2018Among our resorts, Newport Harbor Island Resort, Jekyll Island Club Resort, and Estancia La Jolla Hotel & Spa each delivered strong gains as they continue to capture market share and expand profitability as they ramp up from their transformational redevelopments. Leisure demand across our portfolio remained resilient in the third quarter, although many leisure customers continued to be price sensitive. Weekday and weekend occupancies continued to increase across our resort and urban markets.
\n
\u00a0\n<\/p>\n

\n\u2018We also achieved a key strategic milestone with the successful completion of our $400 million convertible notes offering at a very attractive 1.625% rate, extending our maturities, lowering our borrowing costs, and enhancing our financial flexibility. We plan to utilize current cash and additional free cash flow generation to address the remaining 2026 convertible notes that mature near the end of next year.
\n
\u00a0\n<\/p>\n

\n\u2018Looking ahead, while we\u2019ve made modest adjustments to our 2025 outlook due to the negative impact of the federal government shutdown, we are increasingly optimistic about our 2026 prospects for renewed growth. Next year sets up well with a uniquely robust list of major events, an improving convention calendar across most of our markets, a more favorable holiday calendar, easier comps in LA and D.C., and continued improving trends across our portfolio.\u201d
\n
\u00a0\n<\/p>\n

-Jon E. Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust<\/i><\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Third Quarter and Year-to-Date Highlights<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Third Quarter<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Nine months ended
\n
<\/b>September 30,<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Same-Property and<\/b><\/p>\n

Corporate Highlights<\/b><\/p>\n<\/td>\n

\n

2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

2024<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Var<\/i><\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

2025<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

2024<\/b><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

Var<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n($ in millions except per share and RevPAR data)\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income (loss)\n<\/p>\n<\/td>\n

\n

\n($32.4)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$45.1\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(171.7%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n($45.2)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$49.9\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(190.7%)<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nSame-Property RevPAR(1,2)<\/sup><\/p>\n<\/td>\n

\n

\n$232\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$239\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(3.1%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$219\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$221\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(0.9%)<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nExcluding LA properties(1,2,3)<\/sup><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$222\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$221\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

0.7%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nSame-Property Total RevPAR(1,2)<\/sup><\/p>\n<\/td>\n

\n

\n$362\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$367\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(1.5%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$345\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$343\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

0.6%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nExcluding LA properties(1,2,3)<\/sup><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$357\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$350\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

1.9%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nSame-Property Room Revenues(1,2)<\/sup><\/p>\n<\/td>\n

\n

\n$254.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$262.8\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(3.1%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$701.9\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$710.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(1.2%)<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nSame-Property Total Revenues(1,2)<\/sup><\/p>\n<\/td>\n

\n

\n$397.7\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$403.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(1.4%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$1,108.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$1,105.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

0.2%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nSame-Property Total Expenses(1,2)<\/sup><\/p>\n<\/td>\n

\n

\n$292.3\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$290.1\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

0.7%<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$824.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$799.9\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

3.1%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nExcluding RE Tax Credits Q2 \u201924(1,2)<\/sup><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$824.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$807.9\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

2.1%<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nSame-Property Hotel EBITDA(1,2)<\/sup><\/p>\n<\/td>\n

\n

\n$105.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$113.3\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(7.0%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$283.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$305.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(7.2%)<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDAre<\/i>(1)<\/sup><\/p>\n<\/td>\n

\n

\n$99.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$112.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(11.6%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$272.8\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$296.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(8.0%)<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted FFO(1)<\/sup><\/p>\n<\/td>\n

\n

\n$60.2\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$71.7\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(16.1%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$156.3\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$180.4\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(13.4%)<\/i><\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted FFO per diluted share(1)<\/sup><\/p>\n<\/td>\n

\n

\n$0.51\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$0.59\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(13.6%)<\/i><\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$1.30\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$1.49\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

(12.8%)<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
\n

\n(1)\n<\/p>\n<\/td>\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 (\u201cEBITDAre\u201d), Adjusted EBITDAre, Funds from Operations (\u201cFFO\u201d), FFO per diluted share, Adjusted FFO, and Adjusted FFO per diluted share.<\/i><\/p>\n<\/td>\n<\/tr>\n

\n\u00a0<\/td>\n<\/tr>\n
\n

\n(2)\n<\/p>\n<\/td>\n

\n

Includes information for all hotels the Company owned as of September 30, 2025, except for the following:<\/i><\/p>\n<\/td>\n<\/tr>\n

\n\n

– <\/b>Newport Harbor Island Resort for January – June.<\/i><\/p>\n<\/td>\n<\/tr>\n

\n\u00a0<\/td>\n<\/tr>\n
\n

\n(3)\n<\/p>\n<\/td>\n

\n

Includes information for all hotels the Company owned as of September 30, 2025, except for the following:<\/i><\/p>\n<\/td>\n<\/tr>\n

\n\n

– <\/b>Newport Harbor Island Resort for January – June.<\/i><\/p>\n<\/td>\n<\/tr>\n

\n\n

– <\/b>LA Properties for January \u2013 June: 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><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n\u201cOur hotel teams, in partnership with our asset managers, executed exceptionally well this quarter, delivering industry-leading cost discipline despite a softer revenue environment,\u201d said Mr. Bortz. \u201cTotal expenses before fixed costs increased just 0.4% year-over-year, while expenses on a per-occupied-room basis declined by 2.0%, reflecting the continued success of our intense and relentless focus on creating operating efficiencies and reducing ongoing operating costs. These results highlight the benefits of our disciplined approach to labor management, procurement, and energy efficiency initiatives, which continue to strengthen both profitability and sustainability. This continued focus on operational efficiency helped mitigate the negative impact of challenging market conditions and softer group attendance, underscoring the resilience of our diversified operating model.\u201d\n<\/p>\n

Update on LaPlaya Recovery from Named Storms<\/b><\/p>\n

\nLaPlaya Beach Resort & Club (\u201cLaPlaya\u201d), a 193-room luxury waterfront resort in Naples, Florida, completed its full restoration in the second quarter following damage sustained from Hurricanes Helene and Milton in late 2024. During the third quarter, the Company continued its targeted physical improvements to further strengthen the resort\u2019s resilience against future weather events. These improvements are expected to be substantially complete by the end of this month.\n<\/p>\n

\nLaPlaya is included in Same-Property results for the first three quarters of 2025 but will be excluded in the fourth quarter for both 2025 and 2024 due to last year\u2019s storm impact. The Company recognized $2.1 million of business interruption (\u201cBI\u201d) insurance income in the third quarter, slightly above its $2.0 million outlook, and expects another $2.0 million in the fourth quarter, in line with the prior outlook, bringing the forecasted full-year BI insurance recovery to $11.6 million. This income contributes to Adjusted EBITDAre<\/i> and Adjusted FFO, but is excluded from Same-Property Hotel EBITDA.\n<\/p>\n

Capital Investments and Strategic Property Redevelopments<\/b><\/p>\n

\nDuring the third quarter, the Company invested $14.2 million in capital improvements across its portfolio, excluding investments related to LaPlaya\u2019s repair and restoration. With the bulk of its multi-year $525-million strategic redevelopment program now complete, Pebblebrook has transitioned into a lower, more normalized level of annual capital investments.\n<\/p>\n

\nThis lower run-rate of capital investments increases discretionary corporate cash flow and strengthens the balance sheet, providing greater flexibility to allocate capital toward shareholder returns, debt reduction, and targeted high-ROI opportunities. For the full year, total capital investments are expected to range between $65 and $75 million, primarily for routine capital maintenance, property refreshes, and select enhancements designed to elevate guest experiences and generate attractive property investment returns.\n<\/p>\n

Balance Sheet and Share Repurchases<\/b><\/p>\n

\nOn September 18, 2025, the Company completed a $400 million private offering of 1.625% Convertible Notes due 2030 and used the proceeds to retire an equal amount of its 1.75% Convertible Notes due 2026 at a 2% discount to par. This transaction extended the maturity of a significant portion of the Company\u2019s debt at a highly attractive cost of capital, leaving $350 million of the 2026 Notes outstanding.\n<\/p>\n

\nIn connection with this offering, the Company also entered into capped calls providing dilution protection up to a conversion price of $20.23\/share, and repurchased approximately 4.3 million common shares at $11.56\/share. Together, these actions increased the effective all-in equity conversion price to $24.43\/share, driving immediate NAV per share accretion and FFO per share benefit while preserving long-term equity value.\n<\/p>\n

\nWith $232 million of cash and restricted cash on hand and strong ongoing operating cash flow generation, Pebblebrook expects to utilize cash to address the remaining $350 million of Convertible Notes maturing in December 2026. The Company also maintains significant flexibility with $642 million of available capacity on its $650 million senior unsecured revolving credit facility.\n<\/p>\n

\nAs of September 30, 2025, the Company\u2019s debt carries a 4.1% weighted-average interest rate and a weighted-average debt maturity of 2.9 years, with 96% of the debt effectively fixed at 4.0%. Net debt to trailing 12-month corporate EBITDA was 6.1x.\n<\/p>\n

\nDuring the quarter, the Company also repurchased $1.4 million par value of its preferred shares at an attractive 27% average discount to par value, reducing total outstanding preferred equity securities to $766.2 million.\n<\/p>\n

\nOn October 21, 2025, the Company\u2019s Board of Trustees approved a new $150 million common share repurchase program, underscoring Pebblebrook\u2019s ongoing commitment to enhancing shareholder value and maintaining a flexible, opportunistic capital allocation strategy in light of the significant discounts to NAV at which the Company\u2019s common shares continue to trade.\n<\/p>\n

Common and Preferred Dividends<\/b><\/p>\n

\nOn September 15, 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