BETHESDA, Md.– Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today reported results for the third quarter ended September 30, 2015. The Company’s results include the following:
(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"), Adjusted EBITDA, Funds from Operations ("FFO"), FFO per share, Adjusted FFO and Adjusted FFO per share.
For the details as to which hotels are included in Same-Property Revenue Per Available Room (“RevPAR”), Average Daily Rate (“ADR”), Occupancy, Revenues, Expenses, EBITDA and EBITDA Margins appearing in the table above and elsewhere in this press release, refer to the Same-Property Inclusion Reference Table later in this press release.
“In the third quarter, we continued to deliver strong bottom-line results, as we made good progress remixing our customer segments throughout our portfolio, particularly at our recently renovated hotels, while also implementing our best practice initiatives,” said Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “The U.S. lodging industry, along with our portfolio, experienced healthy, but more modest demand growth in the third quarter, as demand was negatively impacted by the Labor Day and other holiday shifts, as well as weaker leisure and international inbound travel in the quarter.
“While we remain encouraged by the overall positive industry fundamentals as demand growth continues to outpace supply growth, we are slightly reducing our outlook for the balance of 2015 due to the recent lackluster data on global growth, weaker job growth and softer international inbound travel demand, as these variables prompt us to be more cautious in our hotel demand growth rate expectations for the fourth quarter,” noted Mr. Bortz.
Third Quarter Highlights
- Same-Property RevPAR: Same-Property RevPAR in the third quarter of 2015 increased 4.0 percent over the same period of 2014 to $230.36. Same-Property ADR grew 5.3 percent from the third quarter of 2014 to $260.74. Same-Property Occupancy decreased 1.3 percent to 88.4 percent.
- Same-Property EBITDA: The Company’s hotels generated $88.6 million of Same-Property EBITDA for the quarter ended September 30, 2015, rising 8.6 percent compared with the same period of 2014. Same-Property Revenues increased 3.9 percent, while Same-Property Hotel Expenses increased by only 1.4 percent. As a result, Same-Property EBITDA Margin for the third quarter of 2015 grew to 36.9 percent, representing an increase of 159 basis points.
- Adjusted EBITDA: The Company’s Adjusted EBITDA rose to $82.4 million from $63.6 million in the prior year period, an increase of $18.8 million, or 29.6 percent.
- Adjusted FFO: The Company’s Adjusted FFO climbed 35.3 percent to $60.4 million from $44.7 million in the prior year period.
- Dividends: On September 15, 2015, the Company declared a regular quarterly cash dividend of $0.31 per share on its common shares, a regular quarterly cash dividend of $0.4921875 per share on its 7.875% Series A Cumulative Redeemable Preferred Shares, a regular quarterly cash dividend of $0.50 per share on its 8.00% Series B Cumulative Redeemable Preferred Shares and a regular quarterly cash dividend of $0.40625 per share on its 6.50% Series C Cumulative Redeemable Preferred Shares.
“We’re extremely pleased with our asset management team’s efforts to improve the profitability and cash flows of our hotels, as we work with our hotel teams to implement our wide array of best practices and initiatives,” continued Mr. Bortz. “Same-Property EBITDA for our portfolio increased 8.6% in the third quarter and it’s up 9.8% year-to-date, representing healthy growth for both periods, and our long-term focus on growing Same-Property EBITDA is yielding successful results that are driving increasing hotel values throughout our portfolio.”
To view full third quarter financial results please visit:
http://investor.pebblebrookhotels.com/file.aspx?IID=4243454&FID=31554343
