BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
it has closed on the sale of the 252-room, upper upscale Dumont NYC in
New York, New York for $118.0 million.
The sale price of $118.0 million reflects a 25.2x EBITDA multiple and a
3.3% net operating income capitalization rate (after an assumed annual
capital reserve of 4.0% of total hotel revenues) based on the trailing
twelve-month operating performance for the period ended May 31, 2017.
“We are very excited to announce the sale of the Dumont NYC,” noted Jon
E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook
Hotel Trust. “With the completion of this sale, we have now completely
exited the New York market. To date, our strategic disposition plan has
generated a total of $581.8 million in gross proceeds, and we’re pleased
with the success we’ve achieved as we continue to take advantage of the
disparity between private market values and public market values.”
Proceeds from the sale of the Dumont NYC will be utilized for general
business purposes, which may include reducing the Company’s outstanding
debt or repurchasing the Company’s common shares. Following the sale of
the Dumont NYC, the Company’s estimated net debt to trailing 12-month
corporate EBITDA will decline to approximately 4.0 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 28 hotels, with a total of
6,970 guest rooms. The Company owns hotels located in 9 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;
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 Dumont 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, 2016.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 June 20, 2017.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 |
| Dumont NYC |
| Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net
Operating Income |
| Trailing Twelve Months |
| (Unaudited, in millions) |
|
| |
| | Twelve months ended |
| | May 31, |
| | 2017 |
| |
|
|
Hotel net income
| |
$
|
2.8
| |
| |
|
|
Adjustment:
| | |
|
Depreciation and amortization
| | |
1.9
| |
| |
|
| Hotel EBITDA | |
$
|
4.7
|
|
| |
|
|
Adjustment:
| | |
|
Capital reserve
| | |
(0.9
|
)
|
| |
|
| Hotel Net Operating Income | |
$
|
3.8
|
|
| | | |
|
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 trailing twelve-month hotel EBITDA
and trailing twelve-month 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 trailing twelve-month
EBITDA and trailing twelve-month 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 trailing twelve-month 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 |
| ($ in millions, except ADR and RevPAR) |
| (Unaudited) |
|
|
|
|
| Historical Operating Data: |
|
| First Quarter |
| Second Quarter |
| Third Quarter |
| Fourth Quarter |
| Full Year |
| | 2016 | | 2016 | | 2016 | | 2016 | | 2016 |
| | | | | | | | | |
|
|
Occupancy
| |
83%
| |
88%
| |
89%
| |
81%
| | 85% |
|
ADR
| | $240 | | $255 | | $264 | | $235 | | $249 |
|
RevPAR
| | $199 | | $224 | | $234 | | $190 | | $212 |
| | | | | | | | | |
|
| Hotel Revenues | | $183.0 | | $202.0 | | $205.6 | | $182.0 | | $772.6 |
| Hotel EBITDA | | $59.6 | | $75.8 | | $79.9 | | $58.8 | | $274.0 |
| Hotel EBITDA Margin | |
32.6%
| |
37.5%
| |
38.9%
| |
32.3%
| | 35.5% |
| | | | | | | | | |
|
| | First Quarter | | | | | | | | |
| | 2017 | | | | | | | | |
| | | | | | | | | |
|
|
Occupancy
| |
81%
| | | | | | | | |
|
ADR
| | $243 | | | | | | | | |
|
RevPAR
| | $196 | | | | | | | | |
| | | | | | | | | |
|
| Hotel Revenues | | $178.7 | | | | | | | | |
| Hotel EBITDA | | $55.3 | | | | | | | | |
| Hotel EBITDA Margin | |
31.0%
| | | | | | | | |
| | | | | | | | | |
|
These historical hotel operating results include information
for all of the hotels the Company owned as of June 20, 2017. 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/20170620006316/en/
Pebblebrook Hotel Trust
Raymond D. Martz
Chief Financial
Officer
240-507-1330
Source: Pebblebrook Hotel Trust