BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
it has acquired the award-winning Redbury Hotel for $34.0 million. The
57-room, all-suite, luxury, full-service hotel is located in the center
of Hollywood, California. The property will continue to be managed by
sbe Hotel Group (“sbe”).
The Redbury Hotel (Photo: sbe)
“We’re thrilled with the acquisition of the Redbury in the dynamic,
high-barrier-to-entry Hollywood neighborhood,” said Jon Bortz, Chairman,
President and Chief Executive Officer of Pebblebrook Hotel Trust. “The
hotel is ideally located at the corner of Hollywood Boulevard and Vine
Street in the center of Hollywood and overlooks historic locations such
as The Pantages Theater and the Capitol Records Tower. The property’s
location provides convenient access to all of the tourist attractions,
restaurants, nightlife and entertainment industry activity that the
Hollywood and West Hollywood areas have to offer. The Redbury
complements our hotels in West Hollywood (Mondrian Hotel), Westwood (W
Los Angeles - Westwood) and Santa Monica (Sheraton Delfina, soon to be
rebranded Le Méridien Delfina). Los Angeles attracts over 25 million
total visitors annually and is the second-most visited city by overseas
visitors. The steady demand growth of the market, along with a
historically constrained supply environment, provides excellent
operating fundamentals for the market and the hotel.”
Designed by Creative Director and renowned photographer Matthew Rolston,
in collaboration with sbe Founder and CEO Sam Nazarian, The Redbury
Hotel is situated at the iconic convergence of Hollywood and Vine, and
is just steps away from the center of the Hollywood Walk of Fame. In
addition to being just a block away from the Hollywood / Vine Metro Red
Line, the hotel is well-located for access to the greater Los Angeles
area’s attractions, including the Hollywood Bowl, Beverly Hills, Century
City, UCLA, the Getty Center, Downtown Los Angeles, Santa Monica and Los
Angeles International Airport.
The Redbury Hotel boasts 57 well-appointed, all-suite guest rooms that
average 790 square feet, each with sophisticated design elements drawn
from a variety of old-world cultures. Each spacious suite offers a
home-like atmosphere with 40- or 46-inch high-definition LCD TVs with
DVD and DVR, high-speed wi-fi, oversized walk-in rain showers,
floor-to-ceiling windows, private patio or balcony and European-style
kitchens with gas burners. The hotel’s signature dining concept, Cleo,
is a celebrated and award-winning Mediterranean restaurant and bar, and
The Library is a private indoor-outdoor lounge on the second floor that
offers hand-crafted specialty cocktails and select menu items from Cleo
in a relaxed, intimate setting. In addition, the property contains 154
on-site parking spaces and provides valet parking.
In 2012, The Redbury Hotel operated at 84% occupancy, with an average
daily rate (“ADR”) of $274 and room revenue per available room
(“RevPAR”) of $230. During the next 12 months, the Company currently
forecasts that the hotel will generate earnings before interest, taxes,
depreciation and amortization (“EBITDA”) of $2.75 to $3.0 million and
net operating income after capital reserves (“NOI”) of $2.25 to $2.5
million.
“We’re thrilled to be building a strategic relationship with sbe,”
continued Mr. Bortz. “sbe has a strong presence in the Los Angeles
market and terrific expertise in operating boutique hotel properties
with high-quality restaurants and bars.”
“Partnering with Pebblebrook on the Redbury is a venture with tremendous
upside and positions the property for continued success for years to
come,” added Mr. Nazarian. “Our collective knowledge of the Los Angeles
market and vast hotel industry expertise will add tremendous value to
the property and provide a strong foundation for our partnership to
thrive.”
The Company expects to incur approximately $0.5 million of costs related
to the acquisition of the hotel that will be expensed as incurred.
The acquisition of The Redbury Hotel brings the total number of
properties in the Company’s portfolio to 27, comprising $2.1 billion of
invested capital. This acquisition marks the Company’s fourth investment
in west Los Angeles, including the 236-room Mondrian Los Angeles in West
Hollywood, the 310-room Sheraton Delfina Santa Monica (soon to be
rebranded Le Méridien) in Santa Monica and the 258-room W Los Angeles –
Westwood in Westwood.
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 27 hotels, including 21 wholly
owned hotels with a total of 5,017 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 us at www.pebblebrookhotels.com
and on Twitter at @PebblebrookPEB.
About sbe Hotel Group
sbe is a creative hospitality company that develops, manages and
operates award-winning hotels, residential, casinos, restaurants and
nightlife. Through exclusive partnerships with cultural visionaries, sbe
is dedicated to delivering the best in design, culinary and
entertainment. Already a proven leader in the hospitality and real
estate industries, sbe has over 80 properties currently operating or in
development and has expanded several of its flagship brands, including
SLS Hotels, Katsuya by Starck, The Bazaar by José Andrés and Hyde
Lounge, nationally and internationally. Founded in 2002 by Chairman and
CEO Sam Nazarian, sbe is a privately held company. More information
about sbe can be obtained at www.sbe.com,
or by downloading the sbe app.
This press release contains certain “forward-looking statements”
relating to, among other things, hotel EBITDA, hotel net operating
income after capital reserves, acquisitions costs and projected demand.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,” “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 or other forward-looking information.Examples of
forward-looking statements include the following: projections of
hotel-level EBITDA and net operating income after capital reserves;
projections of acquisition costs; descriptions of the Company’s plans or
objectives for future operations, acquisitions or services; forecasts of
future economic performance; and descriptions of assumptions underlying
or relating to any of the foregoing expectations 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, supply and demand in the
hotel industry and other factors as are described in greater detail in
the Company’s filings with the Securities and Exchange Commission
(“SEC”), including, without limitation, the Company’s Annual Report on
Form 10-K for the year ended December 31, 2012.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
and at www.sec.gov.
All information in this release is as of August 8, 2013.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.The Company assumes no responsibility for the
contents or accuracy of the information on any of the non-Company
websites mentioned herein, which are included solely for ease of
reference.
For additional information or to receive press releases via email,
please visit our website at
www.pebblebrookhotels.com
|
|
| Pebblebrook Hotel Trust |
| The Redbury Hotel |
| Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net
Operating Income |
| 12-Month Forecast |
| (Unaudited, in millions) |
|
| | | |
| | | |
|
| | Range |
| | Low | | High |
| | | |
|
|
Hotel net income
| | $1.9 | |
to
| $2.1 | |
| | | |
|
|
Adjustment:
| | | | |
|
Depreciation and amortization(1) | |
0.9
| | |
0.9
| |
| |
| |
|
| Hotel EBITDA | | $2.8 |
| | $3.0 |
|
| | | |
|
|
Adjustment:
| | | | |
|
Capital reserve
| |
(0.5
|
)
| |
(0.5
|
)
|
| |
| |
|
| Hotel Net Operating Income | | $2.3 |
| | $2.5 |
|
| | | | | |
|
(1) Depreciation and amortization have been estimated based on a
preliminary purchase price allocation. A change, if any, in the
allocation will affect the amount of depreciation and amortization
and the resulting change may be material.
|
|
|
This press release includes certain non-GAAP financial measures
as defined under Securities and Exchange Commission (SEC) Rules.
These measures are not in accordance with, or an alternative to,
measures prepared in accordance with U.S. generally accepted
accounting principles, or 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 hotel’s
results of operations determined in accordance with GAAP. |
|
|
The Company has presented forecasted hotel EBITDA and
forecasted hotel net operating income after capital reserves,
because it believes these measures provide investors and analysts
with an understanding of the hotel-level operating performance.
These non-GAAP measures do 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 are they indicative of funds
available to fund the Company’s cash needs, including its ability
to make distributions. |
|
|
The Company’s presentation of the hotel’s forecasted EBITDA and
forecasted net operating income after capital reserves should not
be considered as an alternative to net income (computed in
accordance with GAAP) as an indicator of the hotel’s financial
performance. The table above is a reconciliation of the hotel’s
forecasted EBITDA and net operating income after capital reserves
calculations to net income in accordance with GAAP. |
|
|
|
|
| Pebblebrook Hotel Trust |
| Historical Operating Data - Entire Portfolio |
| ($ in millions, except ADR and RevPAR) |
| (Unaudited) |
|
| |
| |
| |
| |
| |
| | | | | | | | | |
|
| Historical Operating Data: | | | | | | | | | | |
| | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | Full Year |
| | 2012 | | 2012 | | 2012 | | 2012 | | 2012 |
| | | | | | | | | |
|
|
Pro forma Occupancy
| |
76%
| |
85%
| |
87%
| |
79%
| | 82% |
|
Pro forma ADR
| | $196 | | $218 | | $219 | | $222 | | $214 |
|
Pro forma RevPAR
| | $148 | | $185 | | $190 | | $177 | | $175 |
| | | | | | | | | |
|
|
Pro forma Hotel Revenues | | $118.5 | | $143.6 | | $145.5 | | $140.7 | | $548.2 |
|
Pro forma Hotel EBITDA | | $23.1 | | $43.1 | | $44.9 | | $38.9 | | $149.9 |
| | | | | | | | | |
|
| | First Quarter | | Second Quarter | | | | | | |
| | 2013 | | 2013 | | | | | | |
| | | | | | | | | |
|
|
Pro forma Occupancy
| |
79%
| |
86%
| | | | | | |
|
Pro forma ADR
| | $203 | | $228 | | | | | | |
|
Pro forma RevPAR
| | $160 | | $196 | | | | | | |
| | | | | | | | | |
|
|
Pro forma Hotel Revenues | | $125.7 | | $151.6 | | | | | | |
|
Pro forma Hotel EBITDA | | $26.3 | | $46.8 | | | | | | |
| | | | | | | | | |
|
These historical hotel operating results include information
for all of the hotels the Company owned as of August 8, 2013,
except for the operating results of Hotel Zetta (formerly Hotel
Milano) for the first quarter of 2012. 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 information
above does not reflect the Company's corporate general and
administrative expenses, 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. |
|
|
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130808006465/en/
Pebblebrook Hotel Trust
Raymond D. Martz, Chief Financial Officer
240-507-1330
Source: Pebblebrook Hotel Trust