BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
the joint venture between Pebblebrook Hotel Trust and Denihan
Hospitality Group, which owns six upper upscale hotels (the “Manhattan
Collection”) in New York, New York, has successfully executed a new
$410.0 million interest-only, non-recourse, secured loan at a fixed
annual interest rate of 3.67 percent. The loan has a term of five years
and is secured by a first mortgage on the Affinia Manhattan, Affinia
Shelburne, Affinia 50, Affinia Gardens and The Benjamin, comprising a
total of 1,491 guest rooms. Proceeds from the loan will be used to fully
pay off the existing mortgage on the Manhattan Collection and for
general business purposes.
“We are thrilled with the completion of this debt financing and our
ability to access the debt markets at historically attractive terms,”
said Raymond D. Martz, Chief Financial Officer for Pebblebrook Hotel
Trust. “Our new debt financing has more favorable terms, a comparable
interest rate and significantly lower risk than the previous outstanding
loan. As a result of this financing, Pebblebrook has no debt maturities
until 2016 and we continue to have 12 hotels unencumbered by debt,
representing nearly $1.0 billion of invested assets.”
In addition to the successful refinancing of the Manhattan Collection
debt, Pebblebrook has provided $50 million of preferred capital to the
joint venture between Pebblebrook Hotel Trust (49 percent interest) and
Denihan Hospitality Group (51 percent interest). This preferred capital
has a five and a half year term, an annual coupon rate of 9.75 percent
and is prepayable at any time by the joint venture.
Following the application of proceeds from the Manhattan Collection, the
Company has $466.4 million in consolidated debt and $267.9 million in
unconsolidated, non-recourse debt at weighted average interest rates of
4.09 percent and 3.67 percent, respectively. The Company has no
outstanding balance outstanding on its $200.0 million senior unsecured
credit facility. The unconsolidated debt amount represents the Company’s
49 percent pro rata interest in the Manhattan Collection.
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 25 hotels, including 19 wholly
owned hotels with a total of 4,615 guest rooms and a 49% 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.
About Denihan Hospitality Group
Denihan Hospitality Group is a privately-held, full-service hotel
management and development company that owns and/or operates 15 boutique
hotels in major urban markets in the U.S. Over the past 50 years, the
Denihan family has built a world-class lodging investment platform
within the boutique hotel space, creating value by acquiring,
repositioning and managing independent hotels.
More details can be found at www.denihan.com.
This press release contains certain “forward-looking statements” made
pursuant to the safe harbor provisions of the Private Securities Reform
Act of 1995, including with regard to the anticipated use of proceeds.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.No assurance can
be given that the net proceeds of the offering will be used as indicated.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.
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 December 28, 2012.Except
as required by law, the Company undertakes no duty to update the
statements in this release to conform the forward-looking 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
Raymond D. Martz, Chief Financial Officer,
(240) 507-1330
Source: Pebblebrook Hotel Trust