INVESTOR RELATIONS
BETHESDA, Md.--(BUSINESS WIRE)-- Pebblebrook Hotel Trust (NYSE: PEB):
Q3
FINANCIAL
HIGHLIGHTS
Q3 HOTEL
OPERATING
TRENDS
CAPEX &
BALANCE
SHEET
2025
OUTLOOK
Note:
See tables later in this press release for a description of Same-Property information and reconciliations from net income (loss) to non-GAAP financial measures used in the table above and elsewhere in this press release. The sector-low weighted average interest rate is based on Pebblebrook’s analysis of EDGAR filings to date for all listed lodging REITs.
“Our third-quarter results were in line with our outlook, reflecting strong operating execution and continued outperformance in driving portfolio-wide operating efficiencies in a challenging and uncertain environment. San Francisco once again led the portfolio, fueled by robust citywide conventions and healthy business and leisure transient demand growth. Chicago also exceeded expectations, with broad-based strength across group, corporate, and leisure segments. As anticipated, the quarter’s results were negatively impacted by the year-over-year timing shift of the Jewish holidays and ongoing softness in group attendance.
‘Among our resorts, Newport Harbor Island Resort, Jekyll Island Club Resort, and Estancia La Jolla Hotel & Spa each delivered strong gains as they continue to capture market share and expand profitability as they ramp up from their transformational redevelopments. Leisure demand across our portfolio remained resilient in the third quarter, although many leisure customers continued to be price sensitive. Weekday and weekend occupancies continued to increase across our resort and urban markets.
‘We also achieved a key strategic milestone with the successful completion of our $400 million convertible notes offering at a very attractive 1.625% rate, extending our maturities, lowering our borrowing costs, and enhancing our financial flexibility. We plan to utilize current cash and additional free cash flow generation to address the remaining 2026 convertible notes that mature near the end of next year.
‘Looking ahead, while we’ve made modest adjustments to our 2025 outlook due to the negative impact of the federal government shutdown, we are increasingly optimistic about our 2026 prospects for renewed growth. Next year sets up well with a uniquely robust list of major events, an improving convention calendar across most of our markets, a more favorable holiday calendar, easier comps in LA and D.C., and continued improving trends across our portfolio.”
-Jon E. Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust
Third Quarter and Year-to-Date Highlights
Third Quarter
Nine months ended September 30,
Same-Property and
Corporate Highlights
2024
Var
($ in millions except per share and RevPAR data)
Net income (loss)
($32.4)
$45.1
(171.7%)
($45.2)
$49.9
(190.7%)
Same-Property RevPAR(1,2)
$232
$239
(3.1%)
$219
$221
(0.9%)
Excluding LA properties(1,2,3)
$222
0.7%
Same-Property Total RevPAR(1,2)
$362
$367
(1.5%)
$345
$343
0.6%
$357
$350
1.9%
Same-Property Room Revenues(1,2)
$254.6
$262.8
$701.9
$710.6
(1.2%)
Same-Property Total Revenues(1,2)
$397.7
$403.4
(1.4%)
$1,108.2
$1,105.5
0.2%
Same-Property Total Expenses(1,2)
$292.3
$290.1
$824.6
$799.9
3.1%
Excluding RE Tax Credits Q2 ’24(1,2)
$807.9
2.1%
Same-Property Hotel EBITDA(1,2)
$105.4
$113.3
(7.0%)
$283.6
$305.6
(7.2%)
Adjusted EBITDAre(1)
$99.2
$112.2
(11.6%)
$272.8
$296.5
(8.0%)
Adjusted FFO(1)
$60.2
$71.7
(16.1%)
$156.3
$180.4
(13.4%)
Adjusted FFO per diluted share(1)
$0.51
$0.59
(13.6%)
$1.30
$1.49
(12.8%)
(1)
See tables later in this press release for a description of Same-Property information and reconciliations from net income (loss) to non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), EBITDA for Real Estate (“EBITDAre”), Adjusted EBITDAre, Funds from Operations (“FFO”), FFO per diluted share, Adjusted FFO, and Adjusted FFO per diluted share.
(2)
Includes information for all hotels the Company owned as of September 30, 2025, except for the following:
- Newport Harbor Island Resort for January - June.
(3)
- LA Properties for January – June: Chamberlain West Hollywood Hotel, Hotel Palomar Los Angeles Beverly Hills, Hotel Ziggy, Hyatt Centric Delfina Santa Monica, Le Parc at Melrose, Mondrian Los Angeles, Montrose at Beverly Hills, Viceroy Santa Monica Hotel, and W Los Angeles – West Beverly Hills.
“Our hotel teams, in partnership with our asset managers, executed exceptionally well this quarter, delivering industry-leading cost discipline despite a softer revenue environment,” said Mr. Bortz. “Total expenses before fixed costs increased just 0.4% year-over-year, while expenses on a per-occupied-room basis declined by 2.0%, reflecting the continued success of our intense and relentless focus on creating operating efficiencies and reducing ongoing operating costs. These results highlight the benefits of our disciplined approach to labor management, procurement, and energy efficiency initiatives, which continue to strengthen both profitability and sustainability. This continued focus on operational efficiency helped mitigate the negative impact of challenging market conditions and softer group attendance, underscoring the resilience of our diversified operating model.”
Update on LaPlaya Recovery from Named Storms
LaPlaya Beach Resort & Club (“LaPlaya”), a 193-room luxury waterfront resort in Naples, Florida, completed its full restoration in the second quarter following damage sustained from Hurricanes Helene and Milton in late 2024. During the third quarter, the Company continued its targeted physical improvements to further strengthen the resort’s resilience against future weather events. These improvements are expected to be substantially complete by the end of this month.
LaPlaya is included in Same-Property results for the first three quarters of 2025 but will be excluded in the fourth quarter for both 2025 and 2024 due to last year’s storm impact. The Company recognized $2.1 million of business interruption (“BI”) insurance income in the third quarter, slightly above its $2.0 million outlook, and expects another $2.0 million in the fourth quarter, in line with the prior outlook, bringing the forecasted full-year BI insurance recovery to $11.6 million. This income contributes to Adjusted EBITDAre and Adjusted FFO, but is excluded from Same-Property Hotel EBITDA.
Capital Investments and Strategic Property Redevelopments
During the third quarter, the Company invested $14.2 million in capital improvements across its portfolio, excluding investments related to LaPlaya’s repair and restoration. With the bulk of its multi-year $525-million strategic redevelopment program now complete, Pebblebrook has transitioned into a lower, more normalized level of annual capital investments.
This lower run-rate of capital investments increases discretionary corporate cash flow and strengthens the balance sheet, providing greater flexibility to allocate capital toward shareholder returns, debt reduction, and targeted high-ROI opportunities. For the full year, total capital investments are expected to range between $65 and $75 million, primarily for routine capital maintenance, property refreshes, and select enhancements designed to elevate guest experiences and generate attractive property investment returns.
Balance Sheet and Share Repurchases
On September 18, 2025, the Company completed a $400 million private offering of 1.625% Convertible Notes due 2030 and used the proceeds to retire an equal amount of its 1.75% Convertible Notes due 2026 at a 2% discount to par. This transaction extended the maturity of a significant portion of the Company’s debt at a highly attractive cost of capital, leaving $350 million of the 2026 Notes outstanding.
In connection with this offering, the Company also entered into capped calls providing dilution protection up to a conversion price of $20.23/share, and repurchased approximately 4.3 million common shares at $11.56/share. Together, these actions increased the effective all-in equity conversion price to $24.43/share, driving immediate NAV per share accretion and FFO per share benefit while preserving long-term equity value.
With $232 million of cash and restricted cash on hand and strong ongoing operating cash flow generation, Pebblebrook expects to utilize cash to address the remaining $350 million of Convertible Notes maturing in December 2026. The Company also maintains significant flexibility with $642 million of available capacity on its $650 million senior unsecured revolving credit facility.
As of September 30, 2025, the Company’s debt carries a 4.1% weighted-average interest rate and a weighted-average debt maturity of 2.9 years, with 96% of the debt effectively fixed at 4.0%. Net debt to trailing 12-month corporate EBITDA was 6.1x.
During the quarter, the Company also repurchased $1.4 million par value of its preferred shares at an attractive 27% average discount to par value, reducing total outstanding preferred equity securities to $766.2 million.
On October 21, 2025, the Company’s Board of Trustees approved a new $150 million common share repurchase program, underscoring Pebblebrook’s ongoing commitment to enhancing shareholder value and maintaining a flexible, opportunistic capital allocation strategy in light of the significant discounts to NAV at which the Company’s common shares continue to trade.
Common and Preferred Dividends
On September 15, 2025, the Company declared a quarterly cash dividend of $0.01 per share on its common shares and a regular quarterly cash dividend for the following preferred shares of beneficial interest:
Update on Curator Hotel & Resort Collection
Curator Hotel & Resort Collection (“Curator”) is a global alliance of experiential, independent lifestyle hotels and resorts, founded by Pebblebrook in partnership with leading independent operators. As of September 30, 2025, Curator included 83 member properties and 124 preferred vendor agreements, providing members with advantageous pricing, enhanced contract terms, and early access to innovative technologies, including AI and robotics. These benefits also extend across Pebblebrook’s portfolio. Curator’s mission is to strengthen independent hotels through best-in-class agreements, shared services, and technology that enhance performance and elevate the guest experience.
2025 Outlook
The Company’s 2025 Outlook reflects modest reductions at the midpoints from prior expectations, primarily due to the temporary impacts from the federal government shutdown, which has negatively impacted travel demand across the country, and most notably in Washington, D.C. and San Diego. Adjusted FFO per diluted share remains unchanged at the midpoint and increased at the low end. The revised outlook assumes the federal government shutdown will be resolved in the very near term and that travel conditions will normalize thereafter; a materially longer shutdown would represent an incremental negative headwind not reflected in this revised outlook. The outlook also assumes stable macroeconomic and weather conditions, and excludes any potential acquisitions or dispositions.
The Company’s 2025 Outlook is as follows:
Variance to Prior Outlook
As of 11/05/25
Var to 7/29/25
($ in millions, except per share data)
Low
High
Net loss
($67.5)
($58.5)
($41.0)
($46.5)
Adjusted EBITDAre
$332.5
$341.5
—
($6.0)
Adjusted FFO
$177.5
$186.5
$1.0
($4.5)
Adjusted FFO per diluted share
$1.50
$1.57
$0.03
($0.02)
This 2025 Outlook is based, in part, on the following estimates and assumptions:
($ in millions)
U.S. Hotel Industry RevPAR Growth Rate
(0.5%)
0.5%
Same-Property RevPAR variance vs. 2024
(1.0%)
0.0%
Same-Property Total RevPAR variance vs. 2024
(0.1%)
1.1%
(0.6%)
Same-Property Total Revenue variance vs. 2024
(0.3%)
0.8%
Same-Property Total Expense variance vs. 2024
2.0%
2.7%
Same-Property Hotel EBITDA
$343.0
$352.0
Same-Property Hotel EBITDA variance vs. 2024
(7.1%)
(4.7%)
(1.6%)
LaPlaya (Q4) not incl. in Same-Property Hotel EBITDA
$5.5
($0.7)
Newport (Q1/Q2) not incl. in Same-Property Hotel EBITDA
$3.5
BI insurance income
$11.6
$0.1
The Company’s Q4 2025 Outlook is as follows:
Q4 2025 Outlook
($ and shares/units in millions, except per share and RevPAR data)
($22.2)
($13.2)
$59.7
$68.7
$21.2
$30.2
$0.18
$0.26
This Q4 2025 Outlook is based, in part, on the following estimates and assumptions:
Same-Property RevPAR
$188
$194
(1.25%)
0.1%
1.6%
$59.4
$68.4
(6.7%)
7.4%
The Company's Q4 2025 Outlook includes an estimated $2.0 million from an expected initial BI insurance income settlement related to LaPlaya for lost income due to Hurricane Milton. While BI insurance income does not affect Same-Property Hotel EBITDA, it positively impacts Adjusted EBITDAre, Adjusted FFO, and Net income (loss).
Third Quarter 2025 Earnings Call
The Company will conduct its quarterly analyst and investor conference call on Thursday, November 6, 2025, beginning at 11:00 AM ET. Please dial (877) 407-3982 approximately ten minutes before the call begins to participate. A live webcast of the conference call will also be available through the Investor Relations section of www.pebblebrookhotels.com. To access the webcast, click on https://investor.pebblebrookhotels.com/news-and-events/webcasts/default.aspx ten minutes before the conference call. A replay of the conference call webcast will be archived and available online.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 46 hotels and resorts, totaling approximately 12,000 guest rooms across 13 urban and resort markets. For more information, visit www.pebblebrookhotels.com and follow @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 the 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. 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. Examples of forward-looking statements include the following: descriptions of the Company’s plans or objectives for future capital investment projects, operations, or services; forecasts of the Company’s future economic performance; forecasts of hotel industry performance; expectations of business interruption insurance proceeds; and descriptions of assumptions underlying or relating to any of the foregoing expectations including assumptions 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 and the supply of hotel properties, and other factors as are described in greater detail in the Company’s filings with the SEC, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. 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 filings with the U.S. Securities and Exchange Commission, 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 November 5, 2025. 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 www.pebblebrookhotels.com
Pebblebrook Hotel Trust
Consolidated Balance Sheets
($ in thousands, except share and per-share data)
September 30, 2025
December 31, 2024
(unaudited)
ASSETS
Assets:
Investment in hotel properties, net
$
5,103,449
5,319,029
Hotel held for sale
80,602
Cash and cash equivalents
223,157
206,650
Restricted cash
8,958
10,941
Hotel receivables (net of allowance for doubtful accounts of $348 and $439, respectively)
45,666
39,125
Prepaid expenses and other assets
92,418
117,593
Total assets
5,554,250
5,693,338
LIABILITIES AND EQUITY
Liabilities:
Unsecured revolving credit facilities
Unsecured term loans, net of unamortized deferred financing costs
912,030
910,596
Convertible senior notes, net of unamortized debt premium and deferred financing costs
739,151
748,176
Unsecured senior notes, net of unamortized deferred financing costs
395,591
394,424
Mortgage loans, net of unamortized deferred financing costs
192,264
193,536
Accounts payable, accrued expenses and other liabilities
228,116
222,230
Lease liabilities - operating leases
333,090
320,741
Deferred revenues
97,980
92,347
Accrued interest
18,027
11,549
Liabilities related to hotel held for sale
18,609
Distribution payable
11,803
11,865
Total liabilities
2,946,661
2,905,464
Commitments and contingencies
Shareholders' Equity:
Preferred shares of beneficial interest, $.01 par value (liquidation preference $688,554 and $690,000 at September 30, 2025 and December 31, 2024, respectively), 100,000,000 shares authorized; 27,542,157 and 27,600,000 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively
275
276
Common shares of beneficial interest, $.01 par value, 500,000,000 shares authorized; 113,841,546 and 119,285,394 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively
1,138
1,193
Additional paid-in capital
3,985,385
4,072,265
Accumulated other comprehensive income (loss)
3,465
16,550
Distributions in excess of retained earnings
(1,475,913
)
(1,392,860
Total shareholders’ equity
2,514,350
2,697,424
Non-controlling interests
93,239
90,450
Total equity
2,607,589
2,787,874
Total liabilities and equity
Consolidated Statements of Operations
(Unaudited)
Three months ended September 30,
Revenues:
Room
254,613
262,755
709,223
714,633
Food and beverage
96,239
95,998
288,543
278,613
Other operating
47,871
45,777
128,760
122,463
Total revenues
398,723
404,530
1,126,526
1,115,709
Expenses:
Hotel operating expenses:
70,434
68,721
196,689
188,747
71,011
71,346
208,237
203,281
Other direct and indirect
117,607
116,953
335,126
328,705
Total hotel operating expenses
259,052
257,020
740,052
720,733
Depreciation and amortization
57,602
57,546
172,790
172,051
Real estate taxes, personal property taxes, property insurance, and ground rent
35,404
35,274
102,655
92,681
General and administrative
12,062
11,814
37,792
35,937
Impairment
46,497
1,908
Business interruption insurance income and gain on insurance settlement
(3,874
(7,059
(11,419
(18,340
Other operating expenses
2,188
963
3,216
4,083
Total operating expenses
408,931
357,466
1,091,583
1,009,053
Operating income (loss)
(10,208
47,064
34,943
106,656
Interest expense
(20,180
(27,925
(74,595
(82,285
Other, net
1,037
793
2,056
1,336
Income (loss) before income taxes
(29,351
19,932
(37,596
25,707
Income tax (expense) benefit
(3,002
25,213
(7,652
24,157
(32,353
45,145
(45,248
49,864
Net income (loss) attributable to non-controlling interests
714
1,488
2,710
3,621
Net income (loss) attributable to the Company
(33,067
43,657
(47,958
46,243
Distributions to preferred shareholders
(10,611
(10,631
(31,874
(31,894
Repurchase of preferred shares
312
Net income (loss) attributable to common shareholders
(43,366
33,026
(79,520
14,349
Net income (loss) per share available to common shareholders, basic
(0.37
0.27
(0.67
0.12
Net income (loss) per share available to common shareholders, diluted
0.24
Weighted-average number of common shares, basic
117,555,628
119,640,463
118,304,722
119,938,931
Weighted-average number of common shares, diluted
149,351,866
120,367,351
Considerations Regarding Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures. These measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from similarly titled non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP.
Funds from Operations (“FFO”) - FFO represents net income (computed in accordance with GAAP), excluding gains or losses from sales of properties, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships. The Company considers FFO a useful measure of performance for an equity REIT because it facilitates an understanding of the Company's operating performance without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, the Company believes that FFO provides a meaningful indication of its performance. The Company also considers FFO an appropriate performance measure given its wide use by investors and analysts. The Company computes FFO in accordance with standards established by the Board of Governors of Nareit in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating FFO utilized by other equity REITs and, accordingly, may not be comparable to that of other REITs. Further, FFO does 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 is it indicative of funds available to fund the Company’s cash needs, including its ability to make distributions. The Company presents FFO per diluted share based on the outstanding dilutive common shares plus the outstanding Operating Partnership units for the periods presented. Earnings before Interest, Taxes, and Depreciation and Amortization ("EBITDA") - The Company believes that EBITDA provides investors a useful financial measure to evaluate its operating performance, excluding the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization). EBITDA for Real Estate ("EBITDAre") - The Company believes that EBITDAre provides investors a useful financial measure to evaluate its operating performance, and the Company presents EBITDAre in accordance with Nareit guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDAre adjusts EBITDA for the following items, which may occur in any period: (1) gains or losses on the disposition of depreciated property, including gains or losses on change of control; (2) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (3) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. The Company also evaluates its performance by reviewing Adjusted FFO and Adjusted EBITDAre because it believes that adjusting FFO and EBITDAre to exclude certain recurring and non-recurring items described below provides useful supplemental information regarding the Company's ongoing operating performance and that the presentation of Adjusted FFO and Adjusted EBITDAre, when combined with the primary GAAP presentation of net income (loss), more completely describes the Company's operating performance. The Company adjusts FFO available to common share and unit holders and EBITDAre for the following items, which may occur in any period, and refers to these measures as Adjusted FFO and Adjusted EBITDAre: - Transaction costs: The Company excludes transaction costs expensed during the period because it believes that including these costs in Adjusted FFO and Adjusted EBITDAre does not reflect the underlying financial performance of the Company and its hotels. - Non-cash ground rent: The Company excludes the non-cash ground rent expense, which is primarily made up of the straight-line rent impact from a ground lease. - Management/franchise contract transition costs: The Company excludes one-time management and/or franchise contract transition costs expensed during the period because it believes that including these costs in Adjusted FFO and Adjusted EBITDAre does not reflect the underlying financial performance of the Company and its hotels. - Interest expense adjustment for acquired liabilities: The Company excludes interest expense adjustment for acquired liabilities assumed in connection with acquisitions, because it believes that including these non-cash adjustments in Adjusted FFO does not reflect the underlying financial performance of the Company. - Finance lease adjustment: The Company excludes the effect of non-cash interest expense from finance leases because it believes that including these non-cash adjustments in Adjusted FFO does not reflect the underlying financial performance of the Company. - Non-cash amortization of acquired intangibles: The Company excludes the non-cash amortization of acquired intangibles, which includes but is not limited to the amortization of favorable and unfavorable leases or management agreements and above/below market real estate tax reduction agreements because it believes that including these non-cash adjustments in Adjusted FFO and Adjusted EBITDAre does not reflect the underlying financial performance of the Company. - Early extinguishment of debt and deferred tax benefit: The Company excludes these items because the Company believes that including these adjustments in Adjusted FFO does not reflect the underlying financial performance of the Company and its hotels. - Gain on insurance settlement, amortization of share-based compensation expense, hurricane-related costs and unrealized loss on investment: The Company excludes these items because it believes that including these costs in Adjusted FFO and Adjusted EBITDAre does not reflect the underlying financial performance of the Company and its hotels. The Company presents weighted-average number of basic and fully diluted common shares and units by excluding the dilutive effect of shares issuable upon conversion of convertible debt. The Company’s presentation of FFO and Adjusted FFO should not be considered as alternatives to net income (computed in accordance with GAAP) as an indicator of the Company’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of its liquidity. The Company’s presentation of EBITDAre and Adjusted EBITDAre should not be considered as alternatives to net income (computed in accordance with GAAP) as an indicator of the Company’s financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of its liquidity.
Reconciliation of Net Income (Loss) to FFO and Adjusted FFO
Adjustments:
Real estate depreciation and amortization
57,544
57,466
172,615
171,807
FFO
71,688
104,519
173,864
223,579
Distribution to preferred shareholders and unit holders
(11,776
(11,795
(35,367
(35,386
FFO available to common share and unit holders
60,224
92,724
138,809
188,193
Transaction costs
37
94
44
Non-cash ground rent on operating and capital leases
1,788
1,868
5,450
5,613
Management/franchise contract transition costs
28
5
72
Interest expense adjustment for acquired liabilities
156
259
717
890
Finance lease adjustment
760
750
2,273
2,242
Non-cash amortization of acquired intangibles
(453
(482
(1,390
(1,445
Gain on insurance settlement
(1,820
Early extinguishment of debt
(7,385
1,534
Amortization of share-based compensation expense
3,521
3,500
10,262
10,083
Redemption of preferred shares
(312
Hurricane-related costs
183
Deferred tax provision (benefit)
2,406
(26,976
5,740
Unrealized loss on investment
1,238
3,900
Adjusted FFO available to common share and unit holders
60,160
71,671
156,343
180,433
FFO per common share - basic
0.51
0.77
1.16
1.56
FFO per common share - diluted
1.55
Adjusted FFO per common share - basic
0.59
1.31
1.49
Adjusted FFO per common share - diluted
1.30
Weighted-average number of basic common shares and units
118,726,350
120,651,591
119,475,444
120,950,059
Weighted-average number of fully diluted common shares and units
119,093,161
120,921,819
119,987,469
121,378,479
See “Considerations Regarding Non-GAAP Financial Measures” of this press release for important considerations regarding the use of non-GAAP financial measures. Any differences are a result of rounding.
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA
($ in thousands)
Three months ended
September 30,
Nine months ended
20,180
27,925
74,595
82,285
Income tax expense (benefit)
3,002
(25,213
7,652
(24,157
EBITDA
48,431
105,403
209,789
280,043
EBITDAre
94,928
107,311
256,286
281,951
99,239
112,225
272,787
296,501
Business interruption insurance income
(2,054
(9,599
Corporate general and administrative and other expenses
8,203
8,162
24,006
27,565
Hotel EBITDA from non-same-property hotels
32
(30
(3,641
(103
105,420
113,298
283,553
305,623
Reconciliation of Q4 2025 and Full Year 2025 Outlook Net Income (Loss) to FFO and Adjusted FFO
(in millions, except per share data)
Three months ending December 31, 2025
Year ending December 31, 2025
(22
(13
(67
(58
50
222
47
202
211
(12
(47
16
25
155
164
2
7
4
14
Other
(1
21
30
178
187
0.14
0.22
1.38
0.18
0.26
1.50
1.57
114.8
118.7
Reconciliation of Q4 2025 and Full Year 2025 Outlook Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre
Interest expense and income tax expense
27
109
55
64
264
273
311
320
1
60
69
333
342
Same-Property Statistical Data
Same-Property Occupancy
79.9
%
78.0
73.4
71.9
2025 vs. 2024 Increase/(Decrease)
2.4
2.2
Same-Property ADR
290.25
306.78
297.66
306.87
(5.4
%)
(3.0
231.84
239.34
218.60
220.55
(3.1
(0.9
Same-Property Total RevPAR
362.12
367.47
345.11
343.15
(1.5
0.6
Notes:
For the three months ended September 30, 2025, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2025. For the nine months ended September 30, 2025, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2025, except for the following:
These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes.
Same-Property Statistical Data - by Market
Same-Property RevPAR variance to 2024:
San Francisco
8.3
12.0
Other Resort Markets
8.1
2.9
Chicago
2.3
3.3
Southern Florida/Georgia
(0.3
1.4
Portland
(3.7
3.9
Boston
(4.9
(1.7
San Diego
(6.0
(0.7
Los Angeles
(10.4
(13.7
Washington DC
(16.4
(2.3
Resorts
0.8
Urban
(4.1
(1.6
"Other Resort Markets" includes:
Columbia River Gorge, WA, Santa Cruz, CA, and Newport, RI. These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes.
Hotel Operational Data
Schedule of Same-Property Results
Same-Property Revenues:
262,756
701,905
710,551
282,304
275,762
46,829
44,663
123,943
119,212
Total hotel revenues
397,681
403,417
1,108,152
1,105,525
Same-Property Expenses:
194,639
187,453
71,010
204,687
201,362
Other direct
9,999
9,681
27,054
26,785
30,984
31,556
89,409
89,542
Information and telecommunication systems
5,637
5,507
16,515
16,023
Sales and marketing
28,550
28,659
82,180
81,729
Management fees
11,748
12,188
31,039
31,983
Property operations and maintenance
14,622
14,244
42,225
40,582
Energy and utilities
12,110
12,213
33,599
32,989
Property taxes
18,772
17,637
53,682
43,742
Other fixed expenses
18,395
18,367
49,570
47,712
Total hotel expenses
292,261
290,119
824,599
799,902
Same-Property EBITDA
Same-Property EBITDA Margin
26.5
28.1
25.6
27.6
For the three months ended September 30, 2025, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2025. For the nine months ended September 30, 2025 and 2024, the above table of hotel operating statistics includes information from all hotels owned as of September 30, 2025, except for the following:
Historical Operating Data
($ in millions except ADR and RevPAR data)
Historical Operating Data:
First Quarter
Second Quarter
Fourth Quarter
Full Year
2019
Occupancy
74%
86%
77%
81%
ADR
$251
$275
$272
$250
$263
RevPAR
$186
$236
$234
$192
$212
Hotel Revenues
$294.3
$375.5
$372.5
$318.8
$1,361.0
Hotel EBITDA
$74.2
$132.7
$126.5
$84.9
$418.3
Hotel EBITDA Margin
25.2%
35.3%
34.0%
26.6%
30.7%
60%
76%
79%
67%
70%
$299
$306
$285
$300
$179
$240
$191
$211
$295.1
$380.5
$393.7
$328.2
$1,397.6
$58.4
$118.9
$110.8
$63.7
$351.8
19.8%
31.2%
28.2%
19.4%
61%
78%
80%
$293
$302
$289
$233
$297.2
$390.3
$387.9
$114.5
$103.1
16.8%
29.4%
These historical hotel operating results include information for all of the hotels the Company owned as of September 30, 2025, as if they were owned as of January 1, 2019, except for LaPlaya Beach Resort & Club which is excluded from all time periods due to its closure following Hurricane Ian. 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. These hotel results for the respective periods may include information reflecting operational performance prior to the Company's ownership of the hotels. Any differences are a result of rounding. The information above has not been audited and is presented only for comparison purposes.
2025 Same-Property Inclusion Reference Table
Hotels
Q1
Q2
Q4
LaPlaya Beach Resort & Club
X
Newport Harbor Island Resort
A property marked with an "X" in a specific quarter denotes that the same-property operating results of that property are included in the Same-Property Statistical Data and in the Schedule of Same-Property Results. The Company's estimates and assumptions for 2025 Same-Property RevPAR, RevPAR Growth, Total Revenue Growth, Total Expense Growth, Hotel EBITDA and Hotel EBITDA growth include all of the hotels the Company owned as of September 30, 2025, except for the following:
Operating statistics and financial results may include periods prior to the Company's ownership of the hotels.
Raymond D. Martz, Co-President and Chief Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330