BETHESDA, Md.–Pebblebrook Hotel Trust (NYSE:PEB):
REOPENING OF HOTELS AND RESORTS
- 39 hotels and resorts currently open, which is approximately three-fourths of the Company’s portfolio; these 39 properties accounted for 76% of Pebblebrook’s 2019 Hotel EBITDA
- Demand in the third quarter continued to increase from the second quarter’s all-time low, with healthy leisure business throughout the quarter and a modest post-Labor Day improvement in business travel
- In October, the Company reopened Hotel Vintage Portland, Hotel Zena Washington DC, The Heathman in Portland, and Hotel Vintage Seattle
AVERAGE MONTHLY CASH BURN
- Monthly cash burn at the Company’s hotels continues to be reduced as the demand recovery continues, additional properties reopen and operating performance ramps up
- Monthly hotel portfolio cash burn is currently running at $5 to $8 million; a $10 million reduction to the Company’s early May midpoint estimate
- Total monthly corporate cash burn is now running at $16 to $21 million; a $9 million reduction to the Company’s early May midpoint estimate
BALANCE SHEET & LIQUIDITY
- As of September 30, 2020, cash on hand of $217.0 million and liquidity of $570.2 million, which includes $353.2 million available on the Company’s $650.0 million credit facility
- Net debt to depreciated book value at the end of Q3 2020: 38%
2020 OUTLOOK
- Given the uncertainties related to the pandemic, 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.
“Throughout the summer, leisure demand continued to improve across the travel and hotel industries and remained unseasonably healthy post-Labor Day, benefitting our properties and particularly our drive-to resorts and urban getaway hotels. Furthermore, business travel began a modest improvement, indicative of more companies and businesses choosing to get back on the road. Finally, we’ve seen some modest pickup in small group business. This steady but slow recovery in hotel demand has led to improved operating performance and a continuing reduction in our hotel and corporate cash burn from the historic lows in the second quarter. Although we do not expect to eliminate our cash burn before year-end, we are incrementally more optimistic as our improved, efficient hotel operating models materially enhance our bottom-line results. However, we remain cautious about operating trends as we head into winter, due to the recent rise in COVID-19 cases and the predicted second wave.”
–Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust
