BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE:PEB) (the “Company”) today announced that
it has acquired LaPlaya Beach Resort, a 189-room, waterfront, luxury
resort and LaPlaya Beach Club, a private members club located at the
resort, (together, “LaPlaya”) for a combined purchase price of $185.5
million.
“We’re thrilled with the opportunity to expand our portfolio into the
thriving market of Naples, Florida with the acquisition of LaPlaya,”
said Jon Bortz, Chairman and Chief Executive Officer of Pebblebrook
Hotel Trust. “The resort is uniquely located on the beach and within one
of the most affluent coastal resort communities in the country, offering
a full array of best-in-class amenities, dining and shopping venues and
dozens of world-renowned golf courses.”
LaPlaya Beach Resort is a 189-room, luxury, full-service resort that
sits on 6 acres of beachfront property surrounded by stunning views of
the Gulf of Mexico and Vanderbilt Bay. The resort was originally built
in 1968 and underwent a comprehensive, $54.0 million renovation and
redesign in 2002, adding an additional tower, the private beach club and
a large parking structure. The hotel’s meeting facilities feature both
indoor and outdoor event space, for a combined total of 11,620 square
feet. The resort offers several food and beverage options including the
widely-acclaimed Baleen, which provides sunset views and a “toes in the
sand” experience and whose menu is modern, seafood-focused and locally
inspired. The Tiki Bar offers a wide selection of beverages, craft
cocktails and snacks, available via butler service to the beach.
Furthermore, the resort’s 4,500 square foot spa, SpaTerre, provides a
full menu of upscale spa and wellness treatments. The resort also
includes three outdoor swimming pools, a 2,200 square foot fitness
center, a 7-story parking garage with 310 spaces, a children’s aquatic
and beach camp, watersport rentals and in-room dining. The acquisition
also includes the leasehold interest in a 23-slip marina on the
Vanderbilt Bay side of the property.
In addition to the acquisition of the resort, the Company also purchased
the LaPlaya Beach Club (the “Club”), which has grown to become one of
the most notable private clubs in Florida. The Club provides the Company
with a strong revenue stream through initiation fees and annual
membership dues, while also generating significant ancillary spend at
the resort by its members. The Club boasts over 800 current active
members and provides a club members’ private dining room, private pool
cabanas, and an exclusive agreement with the LaPlaya Golf Course to
provide Club members and hotel guests with golf access and privileges.
The LaPlaya Golf Course is not included in the transaction.
For the year ended December 2014, LaPlaya operated at 77 percent
occupancy, with an average daily rate (“ADR”) of $337 and room revenue
per available room (“RevPAR”) of $261. During the next 12 months, the
Company currently forecasts that the property will generate earnings
before interest, taxes, depreciation and amortization (“EBITDA”) of
$14.3 to $15.3 million and net operating income after capital reserves
(“NOI”) of $12.5 to $13.5 million.
LaPlaya will continue to be managed by Noble House Hotels & Resorts
under a new operating agreement.
“Noble House has a great understanding of, and excellent experience with
operating unique, world-class, casual luxury, boutique resorts,”
continued Mr. Bortz. “We’re pleased to be building a strategic
relationship with the team who we’ve worked with previously, and we look
forward to collaborating with them to unlock the many opportunities that
exist at LaPlaya. With the addition of Noble House Hotels & Resorts, we
now have 15 third party managers operating our hotels throughout our
portfolio.”
“We are excited to be partnering with Pebblebrook Hotel Trust,” said
Noble House Hotels & Resorts’ Founder and Chairman, Patrick Colee. “We
believe that LaPlaya offers tremendous growth potential, and we are
eager to create additional value at this exceptional property.”
The Company expects to incur approximately $1.3 million of costs related
to the acquisition of the hotel.
The acquisition of LaPlaya Beach Resort brings the total number of
properties in the Company’s portfolio to 36 and marks the Company’s
first investment in Naples, Florida.
The Company’s Outlook for 2015, which has been amended to reflect the
recent increase to its senior unsecured revolving credit facility and
its acquisition of LaPlaya, is as follows:
|
| |
| | 2015 Outlook |
| | Low |
| High |
| |
($ and shares/units in millions,
except per share and RevPAR
data)
|
Net income (loss) to common shareholders
| | $67.5 |
| $73.0 |
|
Net income per diluted share
| | $0.93 | | $1.00 |
| | | |
|
|
Adjusted EBITDA
| | $256.5 | | $262.0 |
| | | |
|
|
Adjusted FFO
| | $179.0 | | $184.5 |
|
Adjusted FFO per diluted share
| | $2.46 | | $2.54 |
| | | |
|
This amended 2015 outlook is based, in part, on the following
estimates and assumptions:
|
| | | |
|
|
U.S. GDP growth rate
| |
2.0%
| |
2.5%
|
| U.S. Hotel Industry RevPAR growth rate
| |
6.0%
| |
7.0%
|
| | | |
|
|
Same-Property RevPAR
| | $211 | | $213 |
|
Same-Property RevPAR growth rate
| |
6.5%
| |
7.5%
|
| | | |
|
|
Same-Property EBITDA
| | $280.5 | | $286.0 |
|
Same-Property EBITDA Margin
| |
32.6%
| |
33.1%
|
|
Same-Property EBITDA Margin growth rate
| |
100 bps
| |
150 bps
|
| | | |
|
|
Corporate cash general and administrative expenses
| | $18.0 | | $18.0 |
|
Corporate non-cash general and administrative expenses
| | $9.1 | | $9.1 |
| | | |
|
|
Total capital investments related to renovations, capital
maintenance and return on investment projects
| | $80.0 | | $100.0 |
| | | |
|
|
Weighted-average fully diluted shares and units
| |
72.7
| |
72.7
|
| | | |
|
The Company’s amended outlook for the second quarter of 2015 is as
follows:
|
| |
| | Second Quarter 2015 Outlook |
| | Low |
| High |
| |
($ and shares/units in millions,
except per share and RevPAR
data)
|
|
Same-Property RevPAR
| | $217 |
| $221 |
|
Same-Property RevPAR growth rate
| |
4.0%
| |
6.0%
|
| | | |
|
|
Same-Property EBITDA
| | $75.0 | | $77.0 |
|
Same-Property EBITDA Margin
| |
34.7%
| |
35.2%
|
|
Same-Property EBITDA Margin growth rate
| |
100 bps
| |
150 bps
|
| | | |
|
|
Adjusted EBITDA
| | $69.3 | | $71.3 |
| | | |
|
|
Adjusted FFO
| | $47.8 | | $49.8 |
|
Adjusted FFO per diluted share
| | $0.66 | | $0.69 |
|
Adjusted FFO per diluted share growth rate
| |
17.9%
| |
23.2%
|
| | | |
|
|
Weighted-average fully diluted shares and units
| |
72.7
| |
72.7
|
| | | |
|
About Noble House Hotels & Resorts
Noble House Hotels & Resorts, Ltd. has been a privately held company for
more than 30 years, originally founded in 1979 by owner Pat Colee as a
commercial property development group. Officially transitioned in 1994,
this Seattle, Wash. based company owns and manages a portfolio of 18
upper segment hotels and luxury resorts spanning the four coastal
corners of America. For more information or to book reservations, visit www.noblehousehotels.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 urban markets
in major gateway cities. The Company owns 36 hotels, including 30 wholly
owned hotels with a total of 7,181 guest rooms and a 49% joint venture
interest in six hotels with a total of 1,777 guest rooms. The Company
owns, or has an ownership interest in, hotels located in 11 states and
the District of Columbia, including: San Francisco, California; Los
Angeles, California (Beverly Hills, Hollywood, Santa Monica and West
Hollywood); Boston, Massachusetts; New York, New York; San Diego,
California; Portland, Oregon; Buckhead, Georgia; Naples, Florida;
Seattle, Washington; Miami, Florida; Washington, DC; Philadelphia,
Pennsylvania; Columbia River Gorge, Washington; Nashville, Tennessee;
Bethesda, Maryland and Minneapolis, Minnesota. For more information,
please visit us at www.pebblebrookhotels.com
and follow us on Twitter at @PebblebrookPEB.
This press release contains certain “forward-looking statements”
relating to, among other things, potential property acquisitions, 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, 2014.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 May 21, 2015.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 |
| La Playa Beach Resort and LaPlaya Beach Club |
| 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
| | $10.2 | |
to
| | $11.2 |
| | | | | |
|
|
Adjustment:
| | | | | | |
|
Depreciation and amortization(1) | |
4.1
| | | |
4.1
|
| |
| | | |
|
| Hotel EBITDA | | $14.3 | | | | $15.3 |
| | | | | |
|
|
Adjustment:
| | | | | | |
|
Capital reserve
| |
(1.8)
| | | |
(1.8)
|
| |
| | | |
|
| Hotel Net Operating Income | | $12.5 | | | | $13.5 |
|
|
|
(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 |
| | 2014 | | 2014 | | 2014 | | 2014 | | 2014 |
| | | | | | | | | |
|
|
Occupancy
| |
80%
| |
88%
| |
89%
| |
81%
| | 85% |
|
ADR
| | $215 | | $240 | | $247 | | $238 | | $236 |
|
RevPAR
| | $173 | | $211 | | $221 | | $194 | | $200 |
| | | | | | | | | |
|
| Hotel Revenues | | $188.1 | | $219.6 | | $224.8 | | $209.7 | | $842.2 |
| Hotel EBITDA | | $47.9 | | $73.7 | | $78.5 | | $66.0 | | $266.1 |
| | | | | | | | | |
|
| | First Quarter | | | | | | | | |
| | 2015 | | | | | | | | |
| | | | | | | | | |
|
|
Occupancy
| |
79%
| | | | | | | | |
|
ADR
| | $230 | | | | | | | | |
|
RevPAR
| | $181 | | | | | | | | |
| | | | | | | | | |
|
| Hotel Revenues | | $194.6 | | | | | | | | |
| Hotel EBITDA | | $53.1 | | | | | | | | |
|
|
These historical hotel operating results include information
for all of the hotels the Company owned as of May 21, 2015. 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 expense, 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. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20150521006368/en/
Pebblebrook Hotel Trust
Raymond D. Martz, Chief Financial Officer
240-507-1330
Source: Pebblebrook Hotel Trust