BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
it has closed on the sale of the 618-room, upper upscale, full-service
Manhattan NYC in New York, New York for $217.5 million.
The sale price of $217.5 million reflects a 19.9x EBITDA multiple and a
4.1% net operating income capitalization rate (after an assumed annual
capital reserve of 4.0% of total hotel revenues) based on the hotel’s
2016 projected operating performance.
“We are very pleased with the sale of the Manhattan NYC,” noted Jon E.
Bortz, Chairman, President and Chief Executive Officer of Pebblebrook
Hotel Trust. “This sale represents our second significant step towards
successfully reducing our exposure to the New York market. The Manhattan
NYC marks the fourth hotel sold under our strategic disposition plan
that we initiated earlier this year, which has generated almost $500
million in gross proceeds. These dispositions have allowed us to take
advantage of the imbalance between the higher private market values for
our hotels and the lower value of our company as determined by the
public market.”
Proceeds from the sale of the Manhattan NYC will be utilized to repay
the $140.0 million loan secured by the property and for general business
purposes which may include further reducing the Company’s outstanding
debt or repurchasing the Company’s common shares. The sale of Manhattan
NYC closed on December 20, 2016.
Due to the sale of Manhattan NYC, the hotel will not be reported in the
Company’s Same-Property statistics for the fourth quarter; however the
results during the Company’s ownership period during the fourth quarter
will continue to be included in Adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization (“EBITDA”). As a result of the
sale, the Company expects that the Company’s Same-Property EBITDA for
the fourth quarter and the year will be reduced by approximately $5.0
million, the Company’s Net Income, Adjusted EBITDA and Adjusted Funds
From Operations (“FFO”) will be reduced by approximately $0.7 million
and the Company’s Adjusted FFO per diluted share will be reduced by
approximately $0.01 per share, representing the portion of the quarter
during which the Company will not own the hotel. The Company is not
re-projecting or reaffirming its outlook for the fourth quarter or the
year issued on October 27, 2016 in any way other than to take into
account the sale of Manhattan NYC.
Following the sale of the Manhattan NYC, the Company’s estimated net
debt to trailing 12-month corporate EBITDA will decline to 3.8 times.
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 29 hotels, with a total of
7,219 guest rooms. The Company owns hotels located in 10 states and the
District of Columbia, including: Los Angeles, California (Beverly Hills,
Santa Monica and West Hollywood); San Diego, California; San Francisco,
California; Washington, DC; Coral Gables, Florida; Naples, Florida;
Buckhead, Georgia; Boston, Massachusetts; Minneapolis, Minnesota; New
York, New York; Portland, Oregon; Philadelphia, Pennsylvania; Nashville,
Tennessee; Columbia River Gorge, Washington; and Seattle, Washington.
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” made
pursuant to the safe harbor provisions of the Private Securities Reform
Act of 1995.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. These forward-looking statements
relate to the use of proceeds from the sale of the Manhattan NYC and the
expected impact on the Company’s financial statements.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.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, 2015.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 press release is as of December 20, 2016.The
Company undertakes no duty to update the statements in this press
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 |
| Manhattan NYC |
| Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net
Operating Income |
| 12-Month Forecast |
| (Unaudited, in millions) |
| |
|
| | Twelve - Month Forecast
Ending December 31, |
| | 2016 |
| |
|
|
Hotel net income
| |
$
|
6.4
| |
| |
|
|
Adjustment:
| | |
|
Depreciation and amortization
| | |
4.5
| |
| |
|
| Hotel EBITDA | |
$
|
10.9
|
|
| |
|
|
Adjustment:
| | |
|
Capital reserve
| | |
(2.0
|
)
|
| |
|
| Hotel Net Operating Income | |
$
|
8.9
|
|
| |
|
|
|
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. Any
differences are a result of rounding. |
|
|
|
|
| |
| |
| |
| |
| |
| 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 |
| | | 2015 | | 2015 | | 2015 | | 2015 | | 2015 |
| | | | | | | | | | |
|
|
Occupancy
| | |
79%
| |
87%
| |
89%
| |
82%
| | 84% |
|
ADR
| | | $230 | | $250 | | $263 | | $236 | | $246 |
|
RevPAR
| | | $182 | | $217 | | $233 | | $192 | | $206 |
| | | | | | | | | | |
|
| Hotel Revenues | | | $174.0 | | $201.1 | | $211.5 | | $186.3 | | $772.8 |
| Hotel EBITDA | | | $51.2 | | $74.7 | | $81.7 | | $59.8 | | $267.4 |
| Hotel EBITDA Margin | | |
29.5%
| |
37.1%
| |
38.6%
| |
32.1%
| | 34.6% |
| | | | | | | | | | |
|
| | | First Quarter | | Second Quarter | | Third Quarter | | | | |
| | | 2016 | | 2016 | | 2016 | | | | |
| | | | | | | | | | |
|
|
Occupancy
| | |
83%
| |
88%
| |
89%
| | | | |
|
ADR
| | | $238 | | $255 | | $264 | | | | |
|
RevPAR
| | | $198 | | $224 | | $234 | | | | |
| | | | | | | | | | |
|
| Hotel Revenues | | | $186.7 | | $207.7 | | $211.3 | | | | |
| Hotel EBITDA | | | $59.4 | | $77.5 | | $81.4 | | | | |
| Hotel EBITDA Margin | | |
31.8%
| |
37.3%
| |
38.5%
| | | | |
| | | | | | | | | | |
|
|
|
These historical hotel operating results include information
for all of the hotels the Company owned as of December 20, 2016.
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/20161220006005/en/
Pebblebrook Hotel Trust
Raymond D. Martz, Chief Financial Officer
240-507-1330
Source: Pebblebrook Hotel Trust