BETHESDA, Md.– Pebblebrook Hotel Trust (NYSE:PEB):
REOPENING & REDEVELOPMENT OF HOTELS AND RESORTS
- 24 hotels and resorts currently open, approximately half of the Company’s portfolio, and expecting to reopen an additional 5 hotels by mid-August, for a total of 29 open hotels and resorts
- All 8 resorts are experiencing a healthy recovery in occupancy and EBITDA and in total, they are achieving average rates at a premium to 2019
- Completed 8 redevelopment projects; 40 of 53 hotels and resorts have undergone transformational redevelopments or comprehensive renovations in the last 5 years
AVERAGE MONTHLY CASH BURN
- Monthly cash burn at the Company’s hotels continues to be reduced as additional properties reopen and operating performance ramps up
- Monthly hotel portfolio cash burn now running at $9 to $12 million; a $6 million reduction compared to the Company’s early May midpoint estimate
- Total monthly corporate cash burn now running at $19 to $24 million; a $6 million decrease compared to the Company’s early May midpoint estimate
BALANCE SHEET & LIQUIDITY
- As of June 30, 2020, cash on hand of $352.8 million and liquidity of $606.0 million, which includes $253.2 million available on the $650 million credit facility
- Net debt to depreciated book value at the end of Q2 2020: 37%
- All financial covenants eliminated through Q1 2021, with less restrictive financial covenants established until Q3 2022
- No meaningful debt maturities until November 2022
2020 OUTLOOK
- Given the uncertainties related to the pandemic and its impact on travel, and variable government restrictions, the Company is unable to provide a 2020 Outlook at this time
(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.
“Demand for hotels and travel in general clearly bottomed in mid-April. Throughout the rest of the quarter, hotel industry demand gradually and consistently improved each month as states and cities reopened and began to ease restrictive mandates. While the recent uptick in COVID cases and the resulting pullback of city reopenings have caused demand growth to flatten out, we’re still seeing an uptick in the leisure segment, benefitting our drive-to resorts, which have been experiencing a healthy recovery in operating performance that has generally improved each week. Encouragingly, our resorts have been generating average rates above the prior-year period, and hotel demand in our urban markets has been gradually recovering as well. As a result, we have reopened an additional 10 urban hotels and expect to reopen another 5 in the next several weeks. All of this positive progress, albeit slow and gradual, has enabled us to materially reduce our monthly cash burn and improve our liquidity during this unprecedented period. We’re also excited to announce the successful completion of the transformational redevelopments of Hotel Zena Washington DC, Le Parc West Hollywood, San Diego Mission Bay Resort, Viceroy Hotel Washington DC, Chaminade Resort in Santa Cruz, and Viceroy Santa Monica Hotel. These comprehensive redevelopments will allow these properties to achieve much better performance as they ramp up over the next few years.”
–Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust
