Company acquired nine hotels comprising $700 million of investments
since December 2009
BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today reported a net
loss to common shareholders of ($6.6) million, or ($0.23) per diluted
share, for the year ended December 31, 2010.
For the year ended December 31, 2010, the Company generated funds from
operations (“FFO”) of ($0.9) million, or ($0.03) per diluted share, and
Adjusted FFO of $7.3 million, or $0.25 per diluted share. The Company’s
earnings before interest, taxes, depreciation and amortization
(“EBITDA”) were $0.7 million and Adjusted EBITDA was $8.9 million.
Net loss, FFO and EBITDA for the year ended December 31, 2010 were
reduced by $6.6 million of costs incurred in connection with potential
and completed acquisitions and $2.0 million of non-cash corporate
general and administrative expenses.
“The lodging industry commenced a rapid and substantial recovery in 2010
due to a robust rebound in business travel. We expect fundamentals to
further improve throughout 2011 as business travel recovers more
completely and the industry regains the ability to increase average room
rates,” noted Jon Bortz, Chairman, President and Chief Executive Officer
of Pebblebrook Hotel Trust. “We continue to be pleased with the
performance of our recently acquired hotels and are encouraged by the
increased investment opportunities within our targeted urban markets. We
have a strong balance sheet with over $240 million of cash and we
continue to operate our company at relatively low leverage levels,
providing us the ability to maintain an active approach to the
acquisition market.”
Pro forma room revenue per available room (“Pro forma RevPAR”) for the
year ended December 31, 2010 was $123.43, an increase of 1.9 percent
over 2009. Pro forma average daily rate (“Pro forma ADR”) decreased 1.3
percent from the prior year to $167.99, while Pro forma Occupancy
increased 3.2 percent over 2009 to 73.5 percent.
The Company’s hotels generated $36.0 million of Pro forma Hotel EBITDA
for the year ended December 31, 2010, compared with $36.3 million for
the same period of 2009. Pro forma Hotel Revenues increased 2.7 percent,
while Pro forma Hotel Expenses increased 3.8 percent. As a result, the
Pro forma Hotel EBITDA Margin for the year ended December 31, 2010 was
21.9 percent, a decrease of 80 basis points compared to the prior year
period.
The Company’s 2010 Pro forma RevPAR, Pro forma ADR, Pro forma Occupancy,
Pro forma Revenues, Pro forma Expenses, Pro forma Hotel EBITDA and Pro
forma Hotel EBITDA Margin include all results of the hotels the Company
owned as of December 31, 2010, with the exception of The Grand Hotel
Minneapolis. These operating statistics and financial results include
periods prior to the Company’s ownership of the hotels. The Company will
include historical operating data for The Grand Hotel Minneapolis after
the Company has owned the hotel for one year, allowing for verifiable
comparative performance data.
2010 Highlights
The Company successfully acquired eight high-quality hotel properties in
2010 for a total of $614.6 million and recently announced its ninth
hotel acquisition on February 16, 2011 for $84.0 million. Eight of the
Company’s completed acquisitions are well located in high
barrier-to-entry urban markets, including the following downtown
markets: Washington, DC; Bethesda, Maryland; San Francisco, California;
Santa Monica, California; Buckhead, Georgia; Minneapolis, Minnesota; and
Philadelphia, Pennsylvania. The remaining hotel is an upper-upscale,
conference center/resort property in the Columbia River Gorge area – a
45-minute drive from Portland, Oregon.
During 2010, the Company invested approximately $3.3 million of capital
throughout its portfolio, including $1.0 million (out of a planned total
of $5 million) at the DoubleTree by Hilton Bethesda – Washington DC and
$1.5 million (out of a planned total of $8 million) at the Sir Francis
Drake.
The $5 million renovation of the 269-room DoubleTree by Hilton Bethesda
– Washington DC’s guestrooms, lobby, entryway and parking facilities is
expected to be completed by the end of the second quarter 2011.
The $8 million renovation of the 416-room Sir Francis Drake’s
guestrooms, lobby bar and rooftop Starlight Room is expected to be
completed by the end of the second quarter 2011.
In addition to the DoubleTree by Hilton Bethesda – Washington DC and Sir
Francis Drake renovations, several of the Company’s recently acquired
hotels will undergo renovations and repositioning during 2011.
The 140-room Grand Hotel Minneapolis is scheduled to undergo a $5
million renovation of its guestrooms, lobby, bar, entry and meeting
space, with completion by the end of the second quarter 2011.
The 310-room Sheraton Delfina is scheduled to undergo a significant
guestroom refurbishment beginning in the fourth quarter of 2011.
“Our hotels continue to perform above our underwriting expectations,”
noted Mr. Bortz. “The refurbishments and repositioning programs that we
have planned, or already commenced at several of our hotels, will add
significant cash flow growth and value in the future. We expect these
improvements to be disruptive to operations during the first half of
2011, but they will position us for enhanced performance during the
second half of 2011 and beyond.”
During 2010, the Company also completed numerous capital transactions to
help fund strategic growth and maintain its strong balance sheet.
On July 8, 2010, the Company executed a $150-million senior secured
revolving credit facility. The credit facility matures in July 2013 and
has a one-year extension option.
On July 28, 2010, the Company, in an underwritten secondary public
offering, sold 19.6 million common shares, resulting in net proceeds of
$318.3 million.
On December 10, 2010, the Company completed financing on a 5-year loan
secured by the InterContinental Buckhead at an annual interest rate of
4.88 percent.
During the fourth quarter of 2010, the Company initiated a $0.12 per
share quarterly dividend to its common shareholders that was paid on
January 14, 2011. Of the dividends paid for the fourth quarter 2010,
$0.0691 represented ordinary income for 2010, with the remaining $0.0509
to be taxable for 2011.
"We continue to be pleased with our ability to access the equity and
debt markets, which has allowed us to execute our disciplined investment
strategy during this advantageous part of the cycle," advised Raymond D.
Martz, Chief Financial Officer of Pebblebrook Hotel Trust.
Fourth Quarter Results
For the fourth quarter of 2010, the Company reported a net loss to
common shareholders of ($1.9) million, or ($0.05) per diluted share.
For the quarter ended December 31, 2010, the Company generated FFO of
$1.6 million and Adjusted FFO of $3.8 million. On a per-diluted share
basis, FFO for the fourth quarter of 2010 was $0.04 and Adjusted FFO was
$0.10. The Company’s EBITDA for the same quarter was $2.7 million and
Adjusted EBITDA was $4.9 million.
Net loss, FFO and EBITDA for the fourth quarter of 2010 were reduced by
$1.8 million of costs incurred in connection with completed and
potential acquisitions and $0.5 million of non-cash corporate general
and administrative expenses.
Pro forma RevPAR in the fourth quarter of 2010 was $118.35, an increase
of 2.7 percent over the same period of 2009. Pro forma ADR increased 2.7
percent from the fourth quarter of 2009 to $173.52, while Pro forma
Occupancy remained at 68.2 percent.
The Company’s hotels generated $8.6 million of Pro forma Hotel EBITDA
for the quarter ended December 31, 2010, compared with $9.2 million for
the same period of 2009. Pro forma Hotel Revenues increased 3.9 percent,
while Pro forma Hotel Expenses increased 7.1 percent. As a result, the
Pro forma Hotel EBITDA Margin for the quarter ended December 31, 2010
was 20.9 percent, a decrease of 235 basis points as compared to the
prior year period.
The Company’s fourth quarter Pro forma RevPAR, ADR, Occupancy, Revenues,
Expenses, Hotel EBITDA and Hotel EBITDA Margin include results of all of
the hotels the Company owned as of December 31, 2010, with the exception
of The Grand Hotel Minneapolis. These operating statistics and financial
results include periods prior to the Company’s ownership of the hotels.
The Company will include historical operating data from The Grand Hotel
Minneapolis after the Company has owned the hotel for one year, allowing
for verifiable comparative performance data.
As of December 31, 2010, the Company had $143.6 million in outstanding
debt and no outstanding balance on its $150-million senior secured
revolving credit facility. On December 31, 2010, the Company had $225.2
million of cash, cash equivalents and restricted cash on its balance
sheet.
Subsequent Events
On January 6, 2011, the Company completed a 5-year, $31.0 million,
secured, non-recourse debt financing collateralized by Skamania Lodge.
The loan is subject to a 5.44% fixed annual interest rate and was funded
on January 25, 2011.
On January 21, 2011, the Company completed a 5-year, $36.0 million,
secured, non-recourse debt financing collateralized by the DoubleTree by
Hilton Bethesda – Washington DC. The loan is subject to a 5.28% fixed
annual interest rate.
On February 16, 2011, the Company acquired the Argonaut Hotel for $84.0
million. The 252-room, upper-upscale boutique, full-service hotel is
located in the heart of Fisherman’s Wharf in San Francisco, California,
directly across from San Francisco Bay. The hotel is managed by Kimpton
Hotels & Restaurants. As part of the acquisition, the Company assumed a
$42.0 million secured, non-recourse loan with a 5.67% fixed annual
interest rate that matures in March of 2012.
Following the completion of the acquisition of the Argonaut Hotel on
February 16, 2011, the Company now has approximately $252.6 million of
debt outstanding. The Company has no outstanding debt on its
$150-million senior secured credit revolving facility and has over $243
million of cash, cash equivalents and restricted cash on its balance
sheet.
2011 Outlook
The Company's outlook for 2011 remains unchanged compared with its
outlook issued on January 20, 2011. The 2011 outlook is estimated as
follows:
-
Net income of $13.1 million to $15.1 million ($0.33 to $0.38 per
diluted share);
-
FFO of $28.2 million to $30.2 million ($0.71 to $0.76 per diluted
share and unit);
-
Adjusted FFO of $32.0 million to $34.0 million ($0.80 to $0.85 per
diluted share and unit),
-
EBITDA of $41.0 million to $43.0 million; and,
-
Adjusted EBITDA of $44.8 million to $46.8 million.
The Company’s 2011 outlook is based on the following estimates and
assumptions:
-
No additional acquisitions are included in this outlook; however, the
Company does expect to be an active participant in the acquisition
market in 2011;
-
Hotel industry room revenue per available room (“RevPAR”) to increase
6.0 percent to 8.0 percent over 2010;
-
Portfolio Pro Forma RevPAR growth of 6.0 percent to 8.0 percent over
2010;
- Portfolio Pro Forma Hotel EBITDA of $50.0 million to $52.0 million;
- Portfolio Pro Forma Hotel EBITDA Margin to increase between 170 basis
points and 250 basis points over the 2010 Portfolio Pro Forma Hotel
EBITDA Margin;
-
Corporate cash general and administrative expenses of approximately
$5.8 million to $6.0 million;
-
Corporate non-cash general and administrative expenses of
approximately $2.7 million;
-
Acquisition and related expenses of approximately $2.0 million;
-
Total capital investments related to renovations, capital maintenance
and return on investment projects of approximately $34.0 million to
$37.0 million;
-
Interest expense, including the non-cash amortization of deferred
financing fees, of approximately $12.8 million;
-
Interest income of approximately $1.5 million;
-
Weighted-average outstanding debt of approximately $245.0 million; and,
-
Weighted-average fully diluted shares and operating partnership units
of approximately 40.0 million.
The Company’s 2011 outlook for corporate cash and non-cash general and
administrative expenses does not include any costs related to
acquisitions, such as due diligence, transfer taxes, and legal and
accounting fees, which are required to be expensed when incurred.
"Our continued success in accessing the debt markets has enabled us to
take advantage of the attractive interest rate environment," noted Mr.
Martz. "We continue to be encouraged by the positive feedback we have
received from the lending community regarding our high-quality portfolio
combined with our strong corporate sponsorship and management team. We
are optimistic that with the capital we have generated from our recently
completed debt transactions and the capacity from our credit facility,
we will continue to be in a terrific position to take advantage of
attractive acquisition opportunities in the marketplace. We anticipate
that our company will be very active in the acquisition market
throughout the year," continued Mr. Martz.
The Company’s 2011 outlook includes the operating and financial
performance from the hotels the Company owned as of February 16, 2011.
The Company’s estimates and assumptions for portfolio RevPAR growth and
portfolio EBITDA margin growth for 2011 include only the hotels owned as
of February 16, 2011, but exclude The Grand Hotel Minneapolis for the
first three quarters of both 2011 and 2010, because the operating
results of that hotel prior to the Company’s acquisition of it in
September 2010 were not auditable. The Company expects to include
operating results for The Grand Hotel Minneapolis in year-over-year
comparisons after the Company has owned the hotel for one full year.
Earnings Call
The Company will conduct its quarterly analyst and investor conference
call on Wednesday, February 23, 2011 at 10:00 AM EST. To participate in
the conference call, please dial (888) 329-8893 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 large urban
and resort markets with an emphasis on the major coastal cities. The
Company owns nine hotels with a total of 2,552 guest rooms in six states
and the District of Columbia including, San Francisco, California;
Washington, DC; Santa Monica, California; Minneapolis, Minnesota;
Bethesda, Maryland; Buckhead, Georgia; Stevenson, Washington; and
Philadelphia, Pennsylvania.
This press release contains certain “forward-looking” statements
relating to, among other things, potential property acquisitions and
projected financial and operating results.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”
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 net income, FFO, EBITDA, Adjusted FFO, Adjusted EBITDA,
RevPAR 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 and its share of future markets; forecasts of hotel industry
performance; 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 Prospectus on Form
424(b)(1) filed on July 23, 2010.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 February 22, 2011.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) | |
|
|
| |
| |
| | |
| | | | | | |
|
| | | | December 31,
2010 | | December 31,
2009 |
| | | | | | |
|
| | | | | | |
|
| ASSETS | | | | | |
| | | | | | |
|
|
Investment in hotel properties, net
| |
$
|
599,714
| | |
$
|
-
| |
|
Ground lease asset
| | |
10,721
| | |
-
| |
|
Cash and cash equivalents
| | |
221,543
| | | |
319,119
| |
|
Restricted cash
| | |
3,664
| | | |
-
| |
|
Investments
| | |
-
| | | |
70,000
| |
|
Hotel receivables (net of allowance for doubtful accounts of $13 and
$0)
| | |
3,924
| | | |
-
| |
|
Deferred financing costs, net
| | |
2,718
| | | |
-
| |
|
Prepaid expenses and other assets
| |
|
13,231
|
| |
|
284
|
|
| |
Total assets
| | $ | 855,515 |
| | $ | 389,403 |
|
| | | | | | |
|
| | | | | | |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | |
| | | | | | |
|
|
Liabilities:
| | | | | |
|
Senior secured revolving credit facility
| |
$
|
-
| | |
$
|
-
| |
|
Mortgage debt
| | |
143,570
| | | |
-
| |
|
Accounts payable and accrued expenses
| | |
15,799
| | | |
1,853
| |
|
Accrued underwriter fees
| | |
-
| | | |
8,050
| |
|
Advance deposits
| | |
2,482
| | | |
-
| |
|
Accrued interest
| | |
304
| | | |
-
| |
|
Distribution payable
| |
|
4,908
|
| |
|
-
|
|
|
Total liabilities
| | |
167,063
| | | |
9,903
| |
|
Commitments and contingencies
| | | | | |
|
Shareholders' equity:
| | | | | |
|
Preferred shares of beneficial interest, $.01 par value, 100,000,000
shares authorized; no shares
| | | | | |
| |
issued and outstanding at December 31, 2010 and at December 31, 2009
| | |
-
| | | |
-
| |
|
Common shares of beneficial interest, $.01 par value, 500,000,000
shares authorized; 39,814,760
| | | | | |
| |
and 20,260,000 issued and outstanding at December 31, 2010 and
December 31, 2009, respectively
| | |
398
| | | |
203
| |
|
Additional paid-in capital
| | |
698,100
| | | |
379,370
| |
|
Accumulated deficit and distributions
| |
|
(11,586
|
)
| |
|
(147
|
)
|
| |
Total shareholders' equity
| | |
686,912
| | | |
379,426
| |
|
Non-controlling interest
| |
|
1,540
|
| |
|
74
|
|
| |
Total equity
| |
|
688,452
|
| |
|
379,500
|
|
| |
Total liabilities and equity
| | $ | 855,515 |
| | $ | 389,403 |
|
| | | | | | | | | |
|
|
|
| Pebblebrook Hotel Trust |
| Consolidated Statements of Operations |
| (In thousands, except share and per-share data) |
|
|
|
| |
| |
| |
| |
| |
| | | | | | | | | | |
|
| | | | | Three months ended December 31, | | Year ended December 31, |
| | | | | 2010 | | 2009 | | 2010 | | 2009 |
| | | | | unaudited | | unaudited | | | | |
| REVENUES: | | | | | | | | |
|
Hotel operating revenues:
| | | | | | | | |
| |
Room
| |
$
|
18,639
| | |
$
|
-
| | |
$
|
32,804
| | |
$
|
-
| |
| |
Food and beverage
| | |
13,398
| | | |
-
| | | |
21,984
| | | |
-
| |
| |
Other operating department
| |
|
1,871
|
| |
|
-
|
| |
|
2,973
|
| |
|
-
|
|
|
Total revenues
| |
|
33,908
|
| |
|
-
|
| |
|
57,761
|
| |
|
-
|
|
| | | | | | | | | | |
|
| EXPENSES: | | | | | | | | |
|
Hotel operating expenses:
| | | | | | | | |
| |
Room
| | |
5,651
| | | |
-
| | | |
9,718
| | | |
-
| |
| |
Food and beverage
| | |
9,093
| | | |
-
| | | |
15,113
| | | |
-
| |
| |
Other direct
| | |
795
| | | |
-
| | | |
1,288
| | | |
-
| |
| |
Other indirect
| |
|
10,073
|
| |
|
-
|
| |
|
16,724
|
| |
|
-
|
|
| | |
Total hotel operating expenses
| | |
25,612
| | | |
-
| | | |
42,843
| | | |
-
| |
| |
Depreciation and amortization
| | |
3,516
| | | |
-
| | | |
5,776
| | | |
-
| |
| |
Real estate taxes, personal property taxes and property insurance
| | |
1,311
| | | |
-
| | | |
2,220
| | | |
-
| |
| |
Ground rent
| | |
113
| | | |
-
| | | |
124
| | | |
-
| |
| |
General and administrative
| | |
2,948
| | | |
262
| | | |
8,319
| | | |
262
| |
| |
Hotel acquisition costs
| |
|
1,770
|
| |
|
-
|
| |
|
6,581
|
| |
|
-
|
|
| | |
Total operating expenses
| |
|
35,270
|
| |
|
262
|
| |
|
65,863
|
| |
|
262
|
|
| |
Operating loss
| | |
(1,362
|
)
| | |
(262
|
)
| | |
(8,102
|
)
| | |
(262
|
)
|
| | |
Interest income
| | |
507
| | | |
115
| | | |
3,020
| | | |
115
| |
| | |
Interest expense
| |
|
(1,169
|
)
| |
|
-
|
| |
|
(1,640
|
)
| |
|
-
|
|
|
Loss before income taxes
| | |
(2,024
|
)
| | |
(147
|
)
| | |
(6,722
|
)
| | |
(147
|
)
|
|
Income tax benefit
| |
|
103
|
| |
|
-
|
| |
|
80
|
| |
|
-
|
|
|
Net loss attributable to common shareholders
| | $ | (1,921 | ) | | $ | (147 | ) | | $ | (6,642 | ) | | $ | (147 | ) |
| | | | | | | | | | |
|
|
Loss per share attributable to common shareholders, basic and diluted
| |
$
|
(0.05
|
)
| |
$
|
(0.04
|
)
| |
$
|
(0.23
|
)
| |
$
|
(0.04
|
)
|
| | | | | | | | | | |
|
|
Weighted-average number of common shares, basic and diluted
| | |
39,811,451
| | | |
4,011,198
| | | |
28,669,851
| | | |
4,011,198
| |
| | | | | | | | | | | | | | | |
|
|
|
| |
| |
| |
| |
| |
| Pebblebrook Hotel Trust |
| Reconciliation of Net Income (Loss) Attributable to Common |
| Shareholders to FFO, EBITDA, Adjusted FFO and Adjusted EBITDA |
| (In thousands, except share and per-share data) |
| (Unaudited) |
| | | | | | | | | |
|
| | | | Three months ended December 31, | | Year ended December 31, |
| | | | 2010 | | 2009 | | 2010 | | 2009 |
| | | | | | | | | |
|
|
Net loss attributable to common shareholders
| |
$
|
(1,921
|
)
| |
$
|
(147
|
)
| |
$
|
(6,642
|
)
| |
$
|
(147
|
)
|
|
Depreciation and amortization
| |
|
3,488
|
| |
|
-
|
| |
|
5,698
|
| |
|
-
|
|
| FFO | | $ | 1,567 |
| | $ | (147 | ) | | $ | (944 | ) | | $ | (147 | ) |
|
Hotel acquisition costs
| | |
1,770
| | | |
-
| | | |
6,581
| | | |
-
| |
|
Ground lease amortization
| | |
69
| | | |
-
| | | |
69
| | | |
-
| |
|
Amortization of LTIP units
| |
|
395
|
| |
|
74
|
| |
|
1,577
|
| |
|
74
|
|
| Adjusted FFO | | $ | 3,801 |
| | $ | (73 | ) | | $ | 7,283 |
| | $ | (73 | ) |
| | | | | | | | | |
|
| FFO per common share - basic and diluted | | |
0.04
| | | |
(0.04
|
)
| | |
(0.03
|
)
| | |
(0.04
|
)
|
| Adjusted FFO per common share - basic and diluted | | |
0.10
| | | |
(0.02
|
)
| | |
0.25
| | | |
(0.02
|
)
|
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | | Three months ended December 31, | | Year ended December 31, |
| | | | 2010 | | 2009 | | 2010 | | 2009 |
| | | | | | | | | |
|
|
Net loss attributable to common shareholders
| |
$
|
(1,921
|
)
| |
$
|
(147
|
)
| |
$
|
(6,642
|
)
| |
$
|
(147
|
)
|
|
Interest expense
| | |
1,169
| | | |
-
| | | |
1,640
| | | |
-
| |
|
Income tax (benefit) expense
| | |
(103
|
)
| | |
-
| | | |
(80
|
)
| | |
-
| |
|
Depreciation and amortization
| |
|
3,516
|
| |
|
-
|
| |
|
5,776
|
| |
|
-
|
|
| EBITDA | | $ | 2,661 |
|
| $ | (147 | ) |
| $ | 694 |
|
| $ | (147 | ) |
|
Hotel acquisition costs
| | |
1,770
| | | |
-
| | | |
6,581
| | | |
-
| |
|
Ground lease amortization
| | |
69
| | | |
-
| | | |
69
| | | |
-
| |
|
Amortization of LTIP units
| |
|
395
|
| |
|
74
|
| |
|
1,577
|
| |
|
74
|
|
| Adjusted EBITDA | | $ | 4,895 |
| | $ | (73 | ) | | $ | 8,921 |
| | $ | (73 | ) |
| | | | | | | | | |
|
The Company was formed in October of 2009; therefore the prior year
represents only limited operating financial data for comparison purposes.
|
|
| Pebblebrook Hotel Trust |
| Pro Forma Hotel Statistical Data |
| (Unaudited) |
|
|
|
| |
| |
| |
| |
| |
| | | | | Three months ended December 31, | | Year ended December 31, |
| | | | | 2010 | | 2009 | | 2010 | | 2009 |
| Total Portfolio | | | | | | | | |
|
Pro forma Occupancy
| | |
68.2
|
%
| | |
68.2
|
%
| | |
73.5
|
%
| | |
71.2
|
%
|
|
Increase/(Decrease)
| | |
(0.0
|
%)
| | | | |
3.2
|
%
| | |
|
Pro forma ADR
| |
$
|
173.52
| | |
$
|
169.02
| | |
$
|
167.99
| | |
$
|
170.17
| |
|
Increase/(Decrease)
| | |
2.7
|
%
| | | | |
(1.3
|
%)
| | |
| Pro forma RevPAR | | $ | 118.35 | | | $ | 115.29 | | | $ | 123.43 | | | $ | 121.08 | |
| Increase/(Decrease) | | | 2.7 | % | | | | | 1.9 | % | | |
| | | | | | | | | | | | |
|
Notes:
These hotel operating results include results from all of the hotels the
Company owned as of December 31, 2010 except The Grand Hotel
Minneapolis. These operating results include results for periods prior
to the Company's ownership of the hotels. The Company expects to include
historical operating results for The Grand Hotel Minneapolis after the
Company has owned the hotel for one year.
The data above is not audited and has been presented only for comparison
purposes.
|
|
| Pebblebrook Hotel Trust |
| Hotel Operational Data |
| Schedule of Pro Forma Property Level Results |
| (In thousands) |
| (Unaudited) |
|
|
| | |
| |
| |
| |
| |
| | | | | Three months ended
December 31, | | Year ended
December 31,
|
| | | | | 2010 | | 2009 | | 2010 | | 2009 |
| | | | | | | | | | |
|
| Pro Forma Hotel Revenues: | | | | | | | | |
|
Rooms
| |
$
|
23,518
| |
$
|
22,908
| |
$
|
97,314
| |
$
|
95,431
|
|
Food and beverage
| | |
15,689
| | |
14,732
| | |
58,291
| | |
55,277
|
|
Other
| | |
|
1,962
| |
|
1,965
| |
|
8,589
| |
|
9,126
|
|
Total hotel revenues
| |
|
41,169
| |
|
39,605
| |
|
164,194
| |
|
159,834
|
| | | | | | | | | | |
|
| Pro Forma Hotel Expenses: | | | | | | | | |
|
Rooms
| | |
6,853
| | |
6,768
| | |
27,922
| | |
27,424
|
|
Food and beverage
| | |
10,790
| | |
10,423
| | |
41,605
| | |
39,687
|
|
Other direct
| | |
1,183
| | |
1,182
| | |
5,000
| | |
5,095
|
|
General and administrative
| | |
3,761
| | |
3,006
| | |
13,652
| | |
13,198
|
|
Sales and marketing
| | |
3,220
| | |
2,847
| | |
12,683
| | |
11,991
|
|
Management fees
| | |
1,195
| | |
1,288
| | |
5,361
| | |
5,311
|
|
Property operations and maintenance
| | |
1,690
| | |
1,541
| | |
6,515
| | |
6,367
|
|
Energy and utilities
| | |
1,594
| | |
1,406
| | |
6,475
| | |
6,043
|
|
Property taxes
| | |
1,137
| | |
998
| | |
4,619
| | |
4,130
|
|
Other fixed expenses
| |
|
1,140
| |
|
935
| |
|
4,395
| |
|
4,289
|
|
Total hotel expenses
| |
|
32,563
| |
|
30,394
| |
|
128,227
| |
|
123,535
|
| | | | |
| |
| |
| |
|
| Pro Forma Hotel EBITDA | |
$
|
8,606
| |
$
|
9,211
| |
$
|
35,967
| |
$
|
36,299
|
| | | | | | | | | | | |
|
Notes:
This schedule of property level results includes information from all of
the hotels the Company owned as of December 31, 2010 except The Grand
Hotel Minneapolis. These property level results include periods prior to
the Company's ownership of the hotels. The Company expects to include
historical property level results for The Grand Hotel Minneapolis 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 expenses, interest expenses, property acquisition costs,
depreciation and amortization, taxes and other expenses.
The data above are not audited financials and have been presented only
for comparison purposes.
|
|
| Pebblebrook Hotel Trust |
| Historical Hotel Pro Forma Operating Data |
| (In thousands, except Occupancy, ADR and RevPAR) |
| (Unaudited) |
|
|
|
| |
| |
| |
| |
| |
| |
| | | | | | | | | | | | |
|
| Prior-Year Operating Data | | | | | | | | | | |
| | | | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year |
| | | | | 2009 | | 2009 | | 2009 | | 2009 | | 2009 |
| | | | | | | | | | | | |
|
|
Pro forma Occupancy
| | |
65.6
|
%
| | |
75.4
|
%
| | |
78.9
|
%
| | |
69.4
|
%
| | |
72.4
|
%
|
|
Pro forma ADR
| |
$
|
179
| | |
$
|
169
| | |
$
|
165
| | |
$
|
170
| | |
$
|
171
| |
|
Pro forma RevPAR
| |
$
|
118
| | |
$
|
127
| | |
$
|
131
| | |
$
|
118
| | |
$
|
123
| |
| | | | | | | | | | | | |
|
|
Pro forma Hotel Revenues
| |
$
|
41,839
| | |
$
|
46,039
| | |
$
|
46,511
| | |
$
|
44,239
| | |
$
|
178,628
| |
|
Pro forma Hotel EBITDA
| |
$
|
6,670
| | |
$
|
12,192
| | |
$
|
11,751
| | |
$
|
10,340
| | |
$
|
40,953
| |
| | | | | | | | | | | | |
|
| | | | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year |
| | | | | 2010 | | 2010 | | 2010 | | 2010 | | 2010 |
| | | | | | | | | | | | |
|
|
Pro forma Occupancy
| | |
68.8
|
%
| | |
81.0
|
%
| | |
79.9
|
%
| | |
69.7
|
%
| | |
74.9
|
%
|
|
Pro forma ADR
| |
$
|
160
| | |
$
|
169
| | |
$
|
175
| | |
$
|
175
| | |
$
|
170
| |
|
Pro forma RevPAR
| |
$
|
110
| | |
$
|
137
| | |
$
|
139
| | |
$
|
122
| | |
$
|
127
| |
| | | | | | | | | | | | |
|
|
Pro forma Hotel Revenues
| |
$
|
39,869
| | |
$
|
49,291
| | |
$
|
49,200
| | |
$
|
46,379
| | |
$
|
184,739
| |
|
Pro forma Hotel EBITDA
| |
$
|
6,331
| | |
$
|
12,548
| | |
$
|
12,331
| | |
$
|
9,944
| | |
$
|
41,154
| |
| | | | | | | | | | | | | | | | | | | |
|
Notes:
These historical hotel operating results include results from the
following hotels that the Company owned as of February 16, 2011,
including: DoubleTree by Hilton Bethesda-Washington DC, Sir Francis
Drake, InterContinental Buckhead, Monaco Washington DC, Skamania Lodge,
Sheraton Delfina, Sofitel Philadelphia and the Argonaut Hotel. The
results exclude The Grand Hotel Minneapolis. These historical operating
results include periods prior to the Company's ownership of the hotels.
The Company expects to include historical operating results for The
Grand Hotel Minneapolis after it has owned the hotel for one year.
The data above is not audited and has been presented only for comparison
purposes.
|
|
| Pebblebrook Hotel Trust |
| 2011 Outlook |
| Reconciliation of Net Income (Loss) Attributable to Common |
| Shareholders to FFO, EBITDA, Adjusted FFO and Adjusted EBITDA |
|
|
| |
| |
| |
| (Unaudited) |
| | | |
|
|
|
| | | | 2011 Outlook |
| | | | Low End | | High End |
| | | | | |
|
|
Net Income
| |
$
|
13,100
| |
$
|
15,100
|
|
Depreciation and amortization
| |
|
15,100
| |
|
15,100
|
| FFO | | $ | 28,200 | | $ | 30,200 |
|
Hotel acquisition costs
| | |
2,000
| | |
2,000
|
|
Ground lease amortization
| | |
200
| | |
200
|
|
Amortization of LTIP units
| |
|
1,600
| |
|
1,600
|
| Adjusted FFO | | $ | 32,000 | | $ | 34,000 |
| | | | | |
|
| | | |
|
|
|
| | | | 2011 Outlook |
| | | | Low End | | High End |
| | | | | |
|
|
Net Income
| |
$
|
13,100
| |
$
|
15,100
|
|
Interest expense
| | |
12,800
| | |
12,800
|
|
Income tax (benefit) expense
| | |
-
| | |
-
|
|
Depreciation and amortization
| |
|
15,100
| |
|
15,100
|
| EBITDA | | $ | 41,000 | | $ | 43,000 |
|
Hotel acquisition costs
| | |
2,000
| | |
2,000
|
|
Ground lease amortization
| | |
200
| | |
200
|
|
Amortization of LTIP units
| |
|
1,600
| |
|
1,600
|
| Adjusted EBITDA | | $ | 44,800 | | $ | 46,800 |
| | | | | | |
|
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
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, Income Taxes, and Depreciation and
Amortization ("EBITDA") - We believe that EBITDA provides investors a
useful financial measure to evaluate our operating performance,
excluding the impact of our capital structure (primarily interest
expense) and our asset base (primarily depreciation and amortization).
The Company’s presentation of FFO in accordance with the NAREIT white
paper and EBITDA, or 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.
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 financials
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.
Source: Pebblebrook Hotel Trust
Contact:
Pebblebrook Hotel Trust
Raymond D. Martz, Chief Financial Officer,
240-507-1330