Pebblebrook Hotel Trust Reports Second Quarter 2025 Results

Pebblebrook Hotel Trust (NYSE: PEB):

Q2 FINANCIAL HIGHLIGHTS	Net income: $19.3 million Same-Property Hotel EBITDA: $115.8 million, exceeded the midpoint of the Company’s outlook by $1.8 million, driven by robust demand in San Francisco and continued success driving operating efficiencies across the portfolio Adjusted EBITDAre: $117.0 million, exceeded the midpoint of the Company’s outlook by $6.5 million, driven in part by Newport Harbor Island Resort, which outperformed its forecast by $1.8 million as it benefits from its recent comprehensive redevelopment and luxury transformation Adjusted FFO per diluted share: $0.65, beat the midpoint of the Company’s outlook by $0.06

HOTEL OPERATING TRENDS	Same-Property Total RevPAR: Increased 1.3% vs. Q2 2024; excluding Los Angeles hotels, Total RevPAR rose 2.7%, with Urban properties up 4.1% and Resorts ahead by 0.6% Top Market Performance: San Francisco RevPAR growth surged 15.2%, Portland climbed 10.4%, and San Diego grew 8.6%, as all three of these urban markets continue their recoveries Operating Expenses Well-Contained: Same-Property Hotel Expenses before fixed costs increased just 1.7% versus last year, reflecting Pebblebrook’s continued success with its strategic productivity and efficiency programs

CAPEX & BALANCE SHEET	Capital Investments: Invested $21.0 million in Q2; full-year capital investments remain on track at $65 to $75 million Balance Sheet: Increased liquidity with $267.1 million in cash and restricted cash; no significant debt maturities until December 2026; net debt to trailing 12-month corporate EBITDA at 5.8x, with a sector-low 4.2% weighted average interest rate

2025 OUTLOOK	Net loss: ($26.5) to ($12.0) million Same-Property Total RevPAR Growth Rate: (0.1%) to 1.7%, midpoint reduced 10 bps Adjusted EBITDAre: $332.5 to $347.5 million, midpoint increased $2.0 million Adjusted FFO per diluted share: $1.47 to $1.59, midpoint increased $0.03
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.

“Our second-quarter results exceeded our outlook, led by a strong rebound in San Francisco, and solid performance in Portland, San Diego, and Chicago. All four markets continue their meaningful recoveries. In addition, our recently redeveloped properties are gaining momentum and market share, with Newport Harbor Island Resort delivering results well above our expectations in its first full year of operations as it benefits from the comprehensive transformation completed last spring.

‘Portfolio-wide, demand from business and leisure travelers has remained resilient, supported by continued strength in both group and transient segments. Out-of-room spending remains healthy across our urban hotels and resort properties, which are also benefiting from the numerous enhanced and newly added restaurants and bars, meeting and event spaces, and other revenue-generating facilities and services introduced through the transformational redevelopments completed as part of our multi-year strategic investment program. While shorter booking windows are creating some near-term rate pressure for leisure, overall demand has proven durable despite heightened macroeconomic uncertainty. We’re particularly pleased with the continued progress our teams have made creating and implementing productivity and efficiency initiatives, which are helping to offset increased labor costs and broader inflationary pressures.

‘Looking ahead, we remain appropriately cautious given the uncertain economic backdrop and evolving trade and policy risks. However, we’re encouraged by the sustained resilience in lodging demand across our portfolio. We will continue to operate with discipline—adjusting our strategies as needed, driving incremental revenue, and maintaining a sharp focus on expense control to protect and grow long-term profitability in this dynamic environment.”

-Jon E. Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust

Second Quarter and Year-to-Date Highlights

	Second Quarter			Six Months Ended June 30,
Same-Property and Corporate Highlights	2025	2024	*Var*	2025	2024	*Var*
	($ in millions except per share and RevPAR data)
Net income (loss)	$19.3	$32.2	(40.2%)	($12.9)	$4.7	(373.3%)
Same-Property RevPAR^(1,2)	$237	$235	0.6%	$212	$211	0.4%
Excluding LA properties^(1,2,3)	$241	$236	2.2%	$216	$209	3.4%
Same-Property Total RevPAR^(1,2)	$371	$366	1.3%	$336	$331	1.7%
Excluding LA properties^(1,2,3)	$389	$378	2.7%	$353	$339	4.2%
Same-Property Room Revenues^(1,2)	$251.3	$249.7	0.7%	$447.3	$447.8	(0.1%)
Same-Property Total Revenues^(1,2)	$394.1	$388.9	1.3%	$710.5	$702.1	1.2%
Same-Property Total Expenses^(1,2)	$278.3	$264.7	5.1%	$532.3	$509.8	4.4%
Excluding RE Tax Credits Q2 ‘24^(1,2)	$278.3	$272.7	2.1%	$532.3	$517.8	2.8%
Same-Property Hotel EBITDA^(1,2)	$115.8	$124.2	(6.7%)	$178.1	$192.3	(7.4%)
Adjusted EBITDAre⁽¹⁾	$117.0	$123.5	(5.3%)	$173.5	$184.3	(5.8%)
Adjusted FFO⁽¹⁾	$77.4	$83.8	(7.5%)	$96.2	$108.8	(11.6%)
Adjusted FFO per diluted share⁽¹⁾	$0.65	$0.69	(5.8%)	$0.80	$0.90	(11.1%)

(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 June 30, 2025, except for the following: Newport Harbor Island Resort for January – June.
(3)	Includes information for all hotels the Company owned as of June 30, 2025, except for the following: Newport Harbor Island Resort for January – June. 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 executed exceptionally well in the second quarter, delivering a 3.1% increase in occupancy across the portfolio, excluding our Los Angeles properties,” said Mr. Bortz. “We are very encouraged by the ongoing recoveries in San Francisco, Portland, and Chicago, reflecting the continued resilience of these markets, which more than offset softness in Los Angeles and Washington, D.C. We are particularly pleased by the continued success our teams have had identifying new efficiencies to operate more productively, as reflected in the modest 1.7% year-over-year increase in same-property expenses before fixed costs.”

Los Angeles continued to underperform in the second quarter amid a confluence of market-specific headwinds. While the January wildfires triggered cancellations and weakened bookings in the first and second quarters, demand recovery was well underway in Q2 but was hampered by disruptions from ongoing local immigration enforcement activities, which negatively impacted corporate and leisure demand. The Company anticipates a full-year negative impact in LA of approximately 80 basis points in Same-Property Total RevPAR and a $7.7 million negative impact to Same-Property Hotel EBITDA—each representing a modest increase from prior expectations. These impacts have been reflected in the Company’s updated 2025 outlook. While the timing of a full recovery remains uncertain, the Company remains confident in the long-term strength and growth potential of its Los Angeles properties.

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. All guest facilities and amenities are fully operational and the resort is operating normally. The Company is also making additional targeted investments to further enhance the property and improve its resilience against future weather events. With restoration complete and new resilience enhancements underway, LaPlaya is better positioned to deliver strong and stable performance heading into 2026.

For the first three quarters of 2025, LaPlaya is included in the Company’s Same-Property metrics; however, it will be excluded in the fourth quarter for both 2025 and 2024 due to the impact from Hurricanes Helene and Milton last year. In the second quarter, the Company recognized $3.2 million in business interruption (“BI”) insurance income—exceeding its prior outlook of $1.7 million. The Company now expects $4.0 million in BI insurance income during the second half of the year, bringing the full-year 2025 BI insurance income estimate to $11.5 million, or $3.0 million above the previous forecast. While this BI insurance income contributes to Adjusted EBITDAre and Adjusted FFO, it is excluded from Same-Property Hotel EBITDA.

Capital Investments and Strategic Property Redevelopments

During the second quarter, the Company invested $21.0 million in capital improvements across its portfolio, excluding investments for LaPlaya’s repair and restoration. The $15.0 million renovation of the newly rebranded Hyatt Centric Delfina Santa Monica was substantially completed in April, enhancing the guest experience and positioning the property for long-term growth.

Excluding the potential future conversion of Paradise Point Resort to a Margaritaville Island Resort, Pebblebrook has successfully completed all major transformation projects, marking the conclusion of its multi-year, $525 million strategic redevelopment program.

As a result, capital investments are expected to be significantly lower going forward, freeing up more discretionary cash flow and enhancing balance sheet flexibility. In 2025, the Company anticipates investing $65 to $75 million, mostly for routine capital maintenance, replacements, and selective ROI-driven upgrades.

Balance Sheet

As of June 30, 2025, the Company held $267.1 million in cash, cash equivalents, and restricted cash, with an additional $642.1 million of undrawn capacity remaining on its $650 million senior unsecured revolving credit facility.

The Company’s debt carries a weighted-average interest rate of 4.2%, and a weighted-average maturity of 2.6 years, with no significant maturities until December 2026. Approximately 96% of the Company’s $2.3 billion in consolidated debt and convertible notes is effectively fixed at 4.1%, providing protection against rising interest rates. Net debt to trailing 12-month corporate EBITDA was 5.8x, reflecting a well-capitalized balance sheet with favorable levels of liquidity and financial flexibility.

Common and Preferred Dividends

On June 16, 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:

$0.39844 per 6.375% Series E Cumulative Redeemable Preferred Share;
$0.39375 per 6.3% Series F Cumulative Redeemable Preferred Share;
$0.39844 per 6.375% Series G Cumulative Redeemable Preferred Share; and
$0.35625 per 5.7% Series H Cumulative Redeemable Preferred Share.

Update on Curator Hotel & Resort Collection

Curator Hotel & Resort Collection (“Curator”) is a curated collection of experientially focused small brands and independent lifestyle hotels and resorts worldwide founded by Pebblebrook in collaboration with several industry-leading independent lifestyle hotel operators. As of June 30, 2025, Curator encompassed 81 member hotels and resorts and 123 master service agreements with preferred vendor partners. These agreements deliver preferred pricing, enhanced operating terms, and early access to curated cutting-edge technologies, including AI and robotics—benefits that extend to Pebblebrook’s own properties. Curator's mission is to empower lifestyle hotels and resorts through its best-in-class agreements, services, and technology, amplifying their independent brands and unique guest experiences.

Q3 & 2025 Outlook

The Company is narrowing its full-year 2025 outlook range, which continues to assume stable travel conditions and no material adverse impacts from macroeconomic headwinds or weather-related events—both of which remain subject to ongoing uncertainty and volatility.

The Company’s 2025 Outlook is as follows:

	2025 Outlook As of 7/29/25		*Variance to Prior Outlook* Var to 5/1/25
	($ in millions, except per share data)
	Low	High	*Low*	*High*
Net loss	($26.5)	($12.0)	$3.7	($2.3)
Adjusted EBITDAre	$332.5	$347.5	$5.0	($1.0)
Adjusted FFO	$176.5	$191.0	$6.5	$0.5
Adjusted FFO per diluted share	$1.47	$1.59	$0.05	$0.00

This 2025 Outlook is based, in part, on the following estimates and assumptions:

	2025 Outlook As of 7/29/25		*Variance to Prior Outlook* Var to 5/1/25
	($ in millions, except per share data)
	Low	High	*Low*	*High*
US Hotel Industry RevPAR Growth Rate	(1.0%)	1.0%	–	–
Same-Property RevPAR variance vs. 2024	(1.0%)	1.0%	0.5%	(0.5%)
Same-Property Total RevPAR variance vs. 2024	(0.1%)	1.7%	0.4%	(0.6%)
Same-Property Total Revenue variance vs. 2024	(0.3%)	1.4%	0.5%	(0.6%)
Same-Property Total Expense variance vs. 2024	2.0%	3.0%	0.1%	(0.7%)
Same-Property Hotel EBITDA	$343.0	$358.0	$5.0	($1.0)
Same-Property Hotel EBITDA variance vs. 2024	(7.1%)	(3.1%)	1.4%	(0.3%)
LaPlaya (Q4) not incl. in Same-Property Hotel EBITDA	$6.2	$6.2	($1.3)	($1.3)
Newport (Q1/Q2) not incl. in Same-Property Hotel EBITDA	$3.5	$3.5	$1.8	$1.8
BI insurance income	$11.5	$11.5	$3.0	$3.0

The Company’s Q3 2025 Outlook is as follows:

	Q3 2025 Outlook
	Low	High
	($ and shares/units in millions, except per share and RevPAR data)
Net income	$4.0	$11.0
Adjusted EBITDAre	$93.5	$100.5
Adjusted FFO	$54.0	$61.0
Adjusted FFO per diluted share	$0.45	$0.51

This Q3 2025 Outlook is based, in part, on the following estimates and assumptions:

	Low	High
Same-Property RevPAR	$230	$237
Same-Property RevPAR variance vs. 2024	(4.0%)	(1.0%)
Same-Property Total RevPAR variance vs. 2024	(3.2%)	(0.5%)
Same-Property Total Revenue variance vs. 2024	(3.2%)	(0.5%)
Same-Property Total Expense variance vs. 2024	(0.5%)	0.8%
Same-Property Hotel EBITDA	$102.0	$109.0
Same-Property Hotel EBITDA variance vs. 2024	(10.0%)	(3.8%)

The Company's Q3 2025 Outlook assumes no acquisitions or dispositions and includes an estimated $2.0 million from an 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.

Second Quarter 2025 Earnings Call

The Company will conduct its quarterly analyst and investor conference call on Wednesday, July 30, 2025, beginning at 9:00 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 July 29, 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)

	June 30, 2025			December 31, 2024
	(Unaudited)
ASSETS
Assets:
Investment in hotel properties, net	$	5,249,485		$	5,319,029
Cash and cash equivalents		256,130			206,650
Restricted cash		11,008			10,941
Hotel receivables (net of allowance for doubtful accounts of $311 and $439, respectively)		49,691			39,125
Prepaid expenses and other assets		86,996			117,593
Total assets	$	5,653,310		$	5,693,338



LIABILITIES AND EQUITY

Liabilities:
Unsecured revolving credit facilities	$	-		$	-
Unsecured term loans, net of unamortized deferred financing costs		911,541			910,596
Convertible senior notes, net of unamortized debt premium and deferred financing costs		748,645			748,176
Unsecured senior notes, net of unamortized deferred financing costs		395,245			394,424
Mortgage loans, net of unamortized deferred financing costs		192,704			193,536
Accounts payable, accrued expenses and other liabilities		232,139			222,230
Lease liabilities - operating leases		320,749			320,741
Deferred revenues		99,109			92,347
Accrued interest		10,221			11,549
Distribution payable		11,856			11,865
Total liabilities		2,922,209			2,905,464
Commitments and contingencies

Shareholders' Equity:
Preferred shares of beneficial interest, $.01 par value (liquidation preference $690,000 at
June 30, 2025 and December 31, 2024), 100,000,000 shares authorized; 27,600,000 shares
issued and outstanding at June 30, 2025 and December 31, 2024		276			276
Common shares of beneficial interest, $.01 par value, 500,000,000 shares authorized;
118,166,806 and 119,285,394 shares issued and outstanding at June 30, 2025 and
December 31, 2024, respectively		1,182			1,193
Additional paid-in capital		4,061,670			4,072,265
Accumulated other comprehensive income (loss)		6,870			16,550
Distributions in excess of retained earnings		(1,431,394	)		(1,392,860	)
Total shareholders' equity		2,638,604			2,697,424
Non-controlling interests		92,497			90,450
Total equity		2,731,101			2,787,874
Total liabilities and equity	$	5,653,310		$	5,693,338

Pebblebrook Hotel Trust
Consolidated Statements of Operations
($ in thousands, except share and per-share data)
(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024

Revenues:
Room	$	257,600		$	253,778		$	454,610		$	451,878
Food and beverage		105,994			101,520			192,304			182,615
Other operating		43,943			41,812			80,889			76,686
Total revenues	$	407,537		$	397,110		$	727,803		$	711,179

Expenses:
Hotel operating expenses:
Room	$	67,732		$	65,003		$	126,255		$	120,026
Food and beverage		72,658			70,921			137,226			131,935
Other direct and indirect		113,396			111,733			217,519			211,752
Total hotel operating expenses		253,786			247,657			481,000			463,713
Depreciation and amortization		57,645			57,296			115,188			114,505
Real estate taxes, personal property taxes, property insurance, and ground rent		33,978			25,002			67,251			57,407
General and administrative		12,504			11,946			25,730			24,123
Business interruption insurance income		(3,242	)		(7,301	)		(7,545	)		(11,281	)
Other operating expenses		478			1,539			1,028			3,120
Total operating expenses		355,149			336,139			682,652			651,587
Operating income (loss)		52,388			60,971			45,151			59,592
Interest expense		(27,282	)		(27,939	)		(54,415	)		(54,360	)
Other, net		1,991			217			1,019			543
Income (loss) before income taxes		27,097			33,249			(8,245	)		5,775
Income tax (expense) benefit		(7,812	)		(1,010	)		(4,650	)		(1,056	)
Net income (loss)		19,285			32,239			(12,895	)		4,719
Net income (loss) attributable to non-controlling interests		1,229			1,303			1,996			2,133
Net income (loss) attributable to the Company		18,056			30,936			(14,891	)		2,586
Distributions to preferred shareholders		(10,632	)		(10,632	)		(21,263	)		(21,263	)
Net income (loss) attributable to common shareholders	$	7,424		$	20,304		$	(36,154	)	$	(18,677	)


Net income (loss) per share available to common shareholders, basic	$	0.06		$	0.17		$	(0.30	)	$	(0.16	)
Net income (loss) per share available to common shareholders, diluted	$	0.06		$	0.16		$	(0.30	)	$	(0.16	)

Weighted-average number of common shares, basic		118,172,417			120,094,380			118,685,483			120,089,803
Weighted-average number of common shares, diluted		118,383,446			149,744,864			118,685,483			120,089,803

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.

Pebblebrook Hotel Trust
Reconciliation of Net Income (Loss) to FFO and Adjusted FFO
($ in thousands, except share and per-share data)
(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024

Net income (loss)	$	19,285		$	32,239		$	(12,895	)	$	4,719
Adjustments:
Real estate depreciation and amortization		57,584			57,215			115,071			114,341
FFO	$	76,869		$	89,454		$	102,176		$	119,060
Distribution to preferred shareholders and unit holders		(11,796	)		(11,796	)		(23,591	)		(23,591	)
FFO available to common share and unit holders	$	65,073		$	77,658		$	78,585		$	95,469
Transaction costs		55			40			57			44
Non-cash ground rent on operating and capital leases		1,823			1,872			3,662			3,745
Management/franchise contract transition costs		-			-			5			44
Interest expense adjustment for acquired liabilities		237			368			561			631
Finance lease adjustment		758			747			1,513			1,492
Non-cash amortization of acquired intangibles		(465	)		(481	)		(937	)		(963	)
Early extinguishment of debt		-			-			-			1,534
Amortization of share-based compensation expense		3,522			3,523			6,741			6,583
Hurricane-related costs		-			33			-			183
Deferred tax provision (benefit)		6,439			-			3,334			-
Unrealized loss on investment		-			-			2,662			-
Adjusted FFO available to common share and unit holders	$	77,442		$	83,760		$	96,183		$	108,762

FFO per common share - basic	$	0.55		$	0.64		$	0.66		$	0.79
FFO per common share - diluted	$	0.54		$	0.64		$	0.65		$	0.79
Adjusted FFO per common share - basic	$	0.65		$	0.69		$	0.80		$	0.90
Adjusted FFO per common share - diluted	$	0.65		$	0.69		$	0.80		$	0.90

Weighted-average number of basic common shares and units		119,343,139			121,105,508			119,856,205			121,100,931
Weighted-average number of fully diluted common shares and units		119,554,168			121,314,817			120,309,767			121,494,964

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.

Pebblebrook Hotel Trust
Reconciliation of Net Income (Loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Same-Property Hotel EBITDA
($ in thousands)
(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024

Net income (loss)	$	19,285		$	32,239		$	(12,895	)	$	4,719
Adjustments:
Interest expense		27,282			27,939			54,415			54,360
Income tax expense (benefit)		7,812			1,010			4,650			1,056
Depreciation and amortization		57,645			57,296			115,188			114,505
EBITDA and EBITDAre	$	112,024		$	118,484		$	161,358		$	174,640
Transaction costs		55			40			57			44
Non-cash ground rent on operating and capital leases		1,823			1,872			3,662			3,745
Management/franchise contract transition costs		-			-			5			44
Non-cash amortization of acquired intangibles		(465	)		(481	)		(937	)		(963	)
Amortization of share-based compensation expense		3,522			3,523			6,741			6,583
Hurricane-related costs		-			33			-			183
Unrealized loss on investment		-			-			2,662			-
Adjusted EBITDAre	$	116,959		$	123,471		$	173,548		$	184,276
Business interruption insurance income		(3,242	)		(7,301	)		(7,545	)		(11,281	)
Corporate general and administrative and other expenses		7,262			9,411			15,803			19,403
Hotel EBITDA from non-same-property hotels		(5,136	)		(1,372	)		(3,673	)		(73	)
Same-Property Hotel EBITDA	$	115,843		$	124,209		$	178,133		$	192,325

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.

Pebblebrook Hotel Trust
Reconciliation of Q3 2025 and Full Year 2025 Outlook Net Income (Loss) to FFO and Adjusted FFO
($ in millions, except per share data)
(Unaudited)

	Three months ending September 30, 2025						Year ending December 31, 2025
	Low			High			Low			High

Net income (loss)	$	4		$	11		$	(27	)	$	(12	)
Adjustments:
Real estate depreciation and amortization		52			52			218			218
FFO	$	56		$	63		$	191		$	206
Distribution to preferred shareholders and unit holders		(12	)		(12	)		(47	)		(47	)
FFO available to common share and unit holders	$	44		$	51		$	144		$	159
Non-cash ground rent on operating and capital leases		2			2			7			7
Amortization of share-based compensation expense		4			4			14			14
Other		4			4			12			11
Adjusted FFO available to common share and unit holders	$	54		$	61		$	177		$	191

FFO per common share - diluted	$	0.37		$	0.43		$	1.20		$	1.33
Adjusted FFO per common share - diluted	$	0.45		$	0.51		$	1.47		$	1.59

Weighted-average number of fully diluted common shares and units		119.6			119.6			120.0			120.0

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.

Pebblebrook Hotel Trust
Reconciliation of Q3 2025 and Full Year 2025 Outlook Net Income (Loss) to EBITDA, EBITDAre and Adjusted EBITDAre
($ in millions)
(Unaudited)

	Three months ending September 30, 2025				Year ending December 31, 2025
	Low		High		Low			High

Net income (loss)	$	4	$	11	$	(27	)	$	(12	)
Adjustments:
Interest expense and income tax expense		32		32		118			118
Depreciation and amortization		52		52		218			218
EBITDA and EBITDAre	$	88	$	95	$	309		$	324
Non-cash ground rent on operating and capital leases		2		2		7			7
Amortization of share-based compensation expense		4		4		14			14
Other		-		-		3			3
Adjusted EBITDAre	$	94	$	101	$	333		$	348

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.

Pebblebrook Hotel Trust
Same-Property Statistical Data
(Unaudited)

	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025	2024

Same-Property Occupancy	78.2%	76.3%	70.1%	68.7%
2025 vs. 2024 Increase/(Decrease)	2.5%		2.0%

Same-Property ADR	$302.50	$308.09	$302.05	$306.92
2025 vs. 2024 Increase/(Decrease)	(1.8%)		(1.6%)

Same-Property RevPAR	$236.56	$235.09	$211.71	$210.84
2025 vs. 2024 Increase/(Decrease)	0.6%		0.4%

Same-Property Total RevPAR	$370.93	$366.10	$336.27	$330.58
2025 vs. 2024 Increase/(Decrease)	1.3%		1.7%

Notes:
For the three months ended June 30, 2025 and 2024, the above table of hotel operating statistics includes information from all hotels owned as of June 30, 2025, except for the following: • Newport Harbor Island Resort is excluded due to its redevelopment. For the six months ended June 30, 2025 and 2024, the above table of hotel operating statistics includes information from all hotels owned as of June 30, 2025, except for the following: • Newport Harbor Island Resort is excluded from Q1 and Q2 due to its redevelopment. 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.

Pebblebrook Hotel Trust
Same-Property Statistical Data - by Market
(Unaudited)

	Three months ended June 30,		Six months ended June 30,
	2025		2025
Same-Property RevPAR variance to 2024:
San Francisco	15.2	%	14.1	%
Portland	10.4	%	9.3	%
San Diego	3.6	%	2.8	%
Chicago	2.6	%	4.0	%
Boston	(0.6	%)	0.4	%
Southern Florida/Georgia	(0.8	%)	2.0	%
Washington DC	(3.2	%)	3.9	%
Other Resort Markets	(8.0	%)	(5.8	%)
Los Angeles	(8.2	%)	(15.4	%)

Urban	1.6	%	(0.1	%)
Resorts	(1.9	%)	1.6	%

Notes:
For the three months ended June 30, 2025, the above table of hotel operating statistics includes information from all hotels owned as of June 30, 2025, except for the following: • Newport Harbor Island Resort is excluded due to its redevelopment. For the six months ended June 30, 2025, the above table of hotel operating statistics includes information from all hotels owned as of June 30, 2025, except for the following: • Newport Harbor Island Resort is excluded from Q1 and Q2 due to its redevelopment. "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.

Pebblebrook Hotel Trust
Hotel Operational Data
Schedule of Same-Property Results
($ in thousands)
(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2025			2024			2025			2024

Same-Property Revenues:
Room	$	251,341		$	249,709		$	447,292		$	447,796
Food and beverage		101,040			98,669			186,064			179,764
Other		41,724			40,490			77,115			74,548
Total hotel revenues		394,105			388,868			710,471			702,108

Same-Property Expenses:
Room	$	66,381		$	63,752		$	124,205		$	118,732
Food and beverage		70,126			69,055			133,677			130,016
Other direct		8,832			9,109			17,054			17,106
General and administrative		30,337			30,591			58,425			57,986
Information and telecommunication systems		5,519			5,305			10,879			10,515
Sales and marketing		28,356			27,853			53,630			53,070
Management fees		11,394			11,427			19,291			19,796
Property operations and maintenance		13,973			13,497			27,603			26,338
Energy and utilities		10,414			10,637			21,489			20,775
Property taxes		17,423			8,671			34,909			26,104
Other fixed expenses		15,507			14,762			31,176			29,345
Total hotel expenses		278,262			264,659			532,338			509,783

Same-Property EBITDA	$	115,843		$	124,209		$	178,133		$	192,325

Same-Property EBITDA Margin		29.4	%		31.9	%		25.1	%		27.4	%


Notes:
For the three months ended June 30, 2025 and 2024, the above table of hotel operating statistics includes information from all hotels owned as of June 30, 2025, except for the following: • Newport Harbor Island Resort is excluded due to its redevelopment. For the six months ended June 30, 2025 and 2024, the above table of hotel operating statistics includes information from all hotels owned as of June 30, 2025, except for the following: • Newport Harbor Island Resort is excluded from Q1 and Q2 due to its redevelopment. 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.

Pebblebrook Hotel Trust
Historical Operating Data
($ in millions except ADR and RevPAR data)
(Unaudited)


Historical Operating Data:
	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Full Year
	2019	2019	2019	2019	2019

Occupancy	74%	86%	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%

	First Quarter	Second Quarter	Third Quarter	Fourth Quarter	Full Year
	2024	2024	2024	2024	2024

Occupancy	60%	76%	79%	67%	70%
ADR	$299	$306	$306	$285	$300
RevPAR	$179	$232	$240	$191	$211

Hotel Revenues	$295.1	$380.5	$393.7	$328.2	$1,397.6
Hotel EBITDA	$58.4	$118.9	$110.8	$63.7	$351.8
Hotel EBITDA Margin	19.8%	31.2%	28.2%	19.4%	25.2%

	First Quarter	Second Quarter
	2025	2025

Occupancy	61%	78%
ADR	$293	$302
RevPAR	$179	$236

Hotel Revenues	$297.2	$390.3
Hotel EBITDA	$49.9	$114.5
Hotel EBITDA Margin	16.8%	29.4%

Notes:
These historical hotel operating results include information for all of the hotels the Company owned as of June 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.

Pebblebrook Hotel Trust
2025 Same-Property Inclusion Reference Table

Hotels	Q1	Q2	Q3	Q4

LaPlaya Beach Resort & Club	X	X	X
Newport Harbor Island Resort			X	X

Notes:
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 June 30, 2025, except for the following: • LaPlaya Beach Resort & Club is excluded from Q4; and • Newport Harbor Island Resort is excluded from Q1 and Q2. Operating statistics and financial results may include periods prior to the Company's ownership of the hotels.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250729797769/en/

Contacts

Raymond D. Martz, Co-President and Chief Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330