BETHESDA, Md.--(BUSINESS WIRE)--
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
it has closed on the sale of the 826-space parking garage, which
included 10,500 square feet of vacant ground floor space, at Revere
Hotel Boston Common for $95.0 million.
The sale price of $95.0 million reflects a 23.5x EBITDA multiple and a
4.0% net operating income capitalization rate (after an assumed annual
capital reserve of 4.0% of revenues) based on the trailing twelve-month
operating performance for the period ended May 31, 2017.
“We are extremely pleased with the sale of the parking garage at Revere
Hotel Boston Common,” noted Jon E. Bortz, Chairman, President and Chief
Executive Officer of Pebblebrook Hotel Trust. “This sale generates
significant value for our shareholders at a very favorable price and
overall capitalization rate. To date, we have sold 5 hotels and 2
non-hotel assets under our strategic disposition plan that we initiated
early last year, which has generated $676.8 million in gross proceeds.
These property sales continue to allow us to take advantage of the value
differential between the higher private market prices and values and the
lower public market valuation of our company.”
Proceeds from the sale of the parking garage at Revere Hotel Boston
Common will be utilized for general business purposes, which may include
further reducing the Company’s outstanding debt or repurchasing the
Company’s common shares. The sale of the parking garage at Revere Hotel
Boston Common closed on June 23, 2017.
Due to the sale, the garage will not be reported in the Company’s
Same-Property statistics for the second, third or fourth quarters;
however, the results during the Company’s ownership period during the
second quarter will continue to be included in Adjusted Earnings Before
Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted
Funds From Operations (“FFO”), Adjusted FFO per diluted share and Net
Income. As a result of the sale, the Company expects that the Company’s
financials will be impacted by the following amounts:
Second Quarter Impact
-
Net Income increased by approximately $12.8 million as a result of the
estimated gain on sale of hotel properties of approximately $13.0
million
-
Same-Property EBITDA reduced by approximately $1.1 million
-
Adjusted EBITDA reduced by approximately $0.2 million
-
Adjusted FFO reduced by approximately $0.2 million
-
Adjusted FFO per diluted share reduced by approximately $0.00 per share
Second, Third and Fourth Quarters Combined Impact
-
Net Income increased by approximately $11.7 million as a result of the
estimated gain on sale of hotel properties of approximately $13.0
million
-
Same-Property EBITDA reduced by approximately $3.6 million
-
Adjusted EBITDA reduced by approximately $2.7 million
-
Adjusted FFO reduced by approximately $1.3 million
-
Adjusted FFO per diluted share reduced by approximately $0.02 per share
The Company is not re-projecting or reaffirming its outlook for the
second quarter or the full year issued on April 27, 2017 in any way
other than to take into account the sale of the parking garage at Revere
Hotel Boston Common.
If any of the foregoing estimates and assumptions prove to be
inaccurate, actual results, including the outlook, may vary, and could
vary significantly, from the amounts detailed above.
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 parking
garage at Revere Hotel Boston Common and the estimated 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 26, 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 |
| Parking Garage at Revere Hotel Boston Common |
| 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
| | | $2.5 | |
| | |
|
|
Adjustment:
| | | |
Depreciation and amortization
| | |
1.5
| |
| | |
|
| Hotel EBITDA | | | $4.0 |
|
| | |
|
|
Adjustment:
| | | |
|
Capital reserve
| | |
(0.2
|
)
|
| | |
|
| Hotel Net Operating Income | | | $3.8 |
|
| | |
|
Note: Historically, the parking garage at Revere Hotel Boston
Common's financial results were included in the financial results
of Revere Hotel Boston Common. The amounts above, however, reflect
the parking garage alone, and do not include the financial results
of the hotel.
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
2016 | | Second Quarter
2016 | | Third Quarter
2016 | | Fourth Quarter
2016 | | Full Year
2016 |
| | | | | | | | | | |
|
|
Occupancy
| | |
83%
| |
88%
| |
89%
| |
81%
| | 85% |
|
ADR
| | | $240 | | $255 | | $264 | | $235 | | $249 |
|
RevPAR
| | | $199 | | $224 | | $234 | | $190 | | $212 |
| | | | | | | | | | |
|
| Hotel Revenues | | | $181.5 | | $200.5 | | $204.2 | | $180.7 | | $766.9 |
| Hotel EBITDA | | | $58.4 | | $74.5 | | $78.8 | | $57.8 | | $269.5 |
| Hotel EBITDA Margin | | |
32.2%
| |
37.2%
| |
38.6%
| |
32.0%
| | 35.1% |
| | | | | | | | | | |
|
| | | First Quarter
2017 | | | | | | | | |
| | | | | | | | | | |
|
|
Occupancy
| | |
81%
| | | | | | | | |
|
ADR
| | | $243 | | | | | | | | |
|
RevPAR
| | | $196 | | | | | | | | |
| | | | | | | | | | |
|
| Hotel Revenues | | | $177.6 | | | | | | | | |
| Hotel EBITDA | | | $54.5 | | | | | | | | |
| Hotel EBITDA Margin | | |
30.7%
| | | | | | | | |
| | | | | | | | | | |
|
These historical hotel operating results include information
for all of the hotels the Company owned as of June 23, 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/20170626005212/en/
Pebblebrook Hotel Trust
Raymond D. Martz, Chief Financial Officer
240-507-1330
Source: Pebblebrook Hotel Trust