[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) The unaudited consolidated financial statements for Q1 2023 reflect a reduced net loss and slight asset decrease, driven by increased revenues and strategic transactions [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets slightly decreased to **$6.08 billion**, while total liabilities marginally increased and total equity decreased to **$3.00 billion** Consolidated Balance Sheets | Account | March 31, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$6,077,735** | **$6,133,540** | | Investment in hotel properties, net | $5,703,446 | $5,874,876 | | Cash and cash equivalents | $138,515 | $41,040 | | **Total Liabilities** | **$3,073,624** | **$3,048,997** | | Debt | $2,388,017 | $2,387,293 | | **Total Equity** | **$3,004,111** | **$3,084,543** | [Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For Q1 2023, total revenues increased to **$305.7 million**, resulting in a net loss of **$22.0 million**, a significant improvement from **$100.2 million** in Q1 2022 due to property sales and insurance income Consolidated Statements of Operations and Comprehensive Income | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | | :--- | :--- | :--- | | Total Revenues | $305,719 | $258,068 | | Total Operating Expenses | $300,517 | $335,731 | | Operating Income (Loss) | $5,202 | $(77,663) | | Net Loss | $(22,045) | $(100,216) | | Net Loss Attributable to Common Shareholders | $(33,916) | $(110,874) | | Net Loss Per Share (Basic & Diluted) | $(0.27) | $(0.85) | - Q1 2023 results include a **$6.6 million** gain on sale of hotel properties and **$8.1 million** in business interruption insurance income, which were not present in Q1 2022[16](index=16&type=chunk) - Q1 2022 results were negatively impacted by a **$61.0 million** impairment charge[16](index=16&type=chunk) [Consolidated Statements of Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity decreased to **$3.00 billion** by March 31, 2023, primarily due to the net loss, **$42.7 million** in common share repurchases, and **$12.2 million** in shareholder distributions - The company repurchased **3,003,513** common shares for **$42.7 million** during the three months ended March 31, 2023[22](index=22&type=chunk) - Distributions on common and preferred shares/units amounted to **$1.2 million** and **$11.0 million**, respectively, during Q1 2023[22](index=22&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 saw net cash from operations increase to **$46.2 million**, with investing activities providing **$105.2 million** from property sales, leading to a **$94.3 million** net increase in cash Cash Flow Activities (in thousands) | Cash Flow Activity (in thousands) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $46,229 | $38,832 | | Net cash provided by (used in) investing activities | $105,176 | $(19,953) | | Net cash used in financing activities | $(57,125) | $(15,173) | | **Net change in cash** | **$94,280** | **$3,706** | - Investing activities in Q1 2023 were significantly boosted by **$131.9 million** in proceeds from the sale of hotel properties[27](index=27&type=chunk) - Financing activities in Q1 2023 included **$42.7 million** for repurchases of common shares, compared to just **$1.1 million** in the prior-year period[27](index=27&type=chunk) [Notes to the Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail the company's REIT structure with **49 hotels**, Q1 2023 property dispositions totaling **$135.3 million**, Hurricane Ian's impact, the **$2.4 billion** debt structure, and share repurchase programs - As of March 31, 2023, the Company owned interests in **49 hotels** with **12,451 guest rooms**[31](index=31&type=chunk) - In Q1 2023, the company sold three properties (The Heathman Hotel, retail at The Westin Michigan Avenue Chicago, and Hotel Colonnade Coral Gables) for total proceeds of **$135.3 million**[40](index=40&type=chunk) - The company's LaPlaya resort in Florida was significantly impacted by Hurricane Ian and is expected to fully reopen by the end of 2023. The company has received **$29.3 million** in preliminary insurance advances through March 31, 2023[45](index=45&type=chunk)[46](index=46&type=chunk) - In Q1 2023, the company repurchased **2.9 million** common shares for **$41.0 million**. A new **$150.0 million** common share repurchase program and a **$100.0 million** preferred share repurchase program were authorized in February 2023[75](index=75&type=chunk)[76](index=76&type=chunk)[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses Q1 2023 operating performance driven by strong leisure travel, strategic property sales, and share repurchases, with **Same-Property RevPAR** increasing to **$171.05** and **$783.4 million** in liquidity [Overview and Key Indicators](index=26&type=section&id=Overview%20and%20Key%20Indicators) Q1 2023 performance was driven by strong leisure travel and improving corporate demand, with **Same-Property Occupancy** rising to **58.0%** and **RevPAR** increasing by **18.5%** year-over-year Same-Property Operating Metrics | Same-Property Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Occupancy | 58.0% | 48.5% | | ADR | $295.02 | $297.31 | | RevPAR | $171.05 | $144.33 | | Total RevPAR | $266.92 | $215.69 | - Key transactions in Q1 2023 included the sale of The Heathman Hotel (**$45.0 million**), retail at The Westin Michigan Avenue Chicago (**$27.3 million**), and Hotel Colonnade Coral Gables (**$63.0 million**)[123](index=123&type=chunk) - The company repurchased **2,923,978** common shares at an average price of **$14.04** per share during the quarter[123](index=123&type=chunk) [Non-GAAP Financial Measures](index=27&type=section&id=Non-GAAP%20Financial%20Measures) The company's key non-GAAP measures, **FFO** and **EBITDAre**, showed strong Q1 2023 growth, with **FFO** available to common shareholders more than doubling to **$17.5 million** Non-GAAP Financial Measures (in thousands) | Metric (in thousands) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Loss | $(22,045) | $(100,216) | | FFO | $29,604 | $19,777 | | FFO available to common share and unit holders | $17,452 | $8,433 | | EBITDA | $63,754 | $(18,544) | | EBITDAre | $57,119 | $42,439 | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q1 2023 total revenues increased by **$47.7 million** due to travel recovery, while results benefited from a **$6.6 million** gain on property sales and **$8.1 million** in insurance income - Total revenues increased by **$47.7 million**, primarily due to increased leisure travel and recovery in business and group bookings[130](index=130&type=chunk) - Interest expense increased by **$4.9 million** due to higher interest rates on floating rate debt[133](index=133&type=chunk) - The company recognized **$8.1 million** in business interruption insurance income related to LaPlaya Beach Resort & Club[132](index=132&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2023, total liquidity was **$783.4 million**, with total debt at **$2.4 billion**, and planned 2023 capital investments are estimated at **$145.0 million** to **$155.0 million** - Total liquidity as of March 31, 2023, was **$783.4 million**, comprising cash, restricted cash, and available borrowing capacity on the senior unsecured revolving credit facility[137](index=137&type=chunk) Debt Component (in thousands) | Debt Component (in thousands) | March 31, 2023 | | :--- | :--- | | Term loans | $1,380,000 | | Convertible senior notes | $750,000 | | Senior unsecured notes | $50,000 | | Mortgage loans | $220,487 | | **Total debt at face value** | **$2,400,487** | - The company plans to invest **$145.0 million** to **$155.0 million** in capital investments in 2023, including approximately **$50.0 million** in redevelopment and repositioning projects[155](index=155&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company faces interest rate market risk, with **29.2%** of its debt at variable rates, and uses interest rate swaps to mitigate potential impacts on annual interest expense - As of March 31, 2023, **$701.5 million** (**29.2%**) of the company's debt was subject to variable interest rates[166](index=166&type=chunk) - A **0.1%** (10 basis point) increase or decrease in interest rates on variable rate debt would change annual interest expense by approximately **$0.7 million**[166](index=166&type=chunk) - The company utilizes interest rate swap agreements with an aggregate notional amount of **$840.0 million** to hedge variable interest rates on its unsecured term loans[165](index=165&type=chunk) [Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of March 31, 2023[167](index=167&type=chunk) - No material changes to internal control over financial reporting occurred during the most recent fiscal quarter[168](index=168&type=chunk) [PART II. OTHER INFORMATION](index=33&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=Item%201.%20Legal%20Proceedings.) The company is not currently subject to any material litigation or threatened legal proceedings beyond routine business claims - The Company is not presently subject to any material litigation[171](index=171&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors.) No material changes have occurred in the company's risk factors since the last Annual Report on Form 10-K - No material changes have occurred in the risk factors since the last Annual Report on Form 10-K[172](index=172&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) In Q1 2023, the company repurchased over **3.0 million** common shares at an average price of **$14.03**, with **$46.0 million** remaining under the current program and a new **$150.0 million** program authorized Common Share Repurchases | Period (2023) | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | January | 977,100 | $14.40 | | February | 111,556 | $14.72 | | March | 1,957,462 | $13.81 | | **Total Q1** | **3,046,118** | **$14.03** | - As of March 31, 2023, **$46.0 million** remained available for repurchase under the **$100.0 million** share repurchase program[173](index=173&type=chunk) [Defaults Upon Senior Securities](index=33&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) No defaults upon senior securities were reported - None[174](index=174&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) Mine safety disclosures are not applicable to the company's operations - Not applicable[175](index=175&type=chunk) [Other Information](index=33&type=section&id=Item%205.%20Other%20Information.) No other material information was reported in this section - None[176](index=176&type=chunk) [Exhibits](index=34&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the Form 10-Q, including amended bylaws, executive compensation agreements, and required certifications - Exhibits filed include amended bylaws, executive compensation agreements, and required certifications under the Sarbanes-Oxley Act[178](index=178&type=chunk)

Pebblebrook Hotel Trust (NYSE:PEB) Q4 2022 Results Conference Call February 22, 2023 9:00 AM ET Company Participants Raymond Martz - Chief Financial Officer Jon Bortz - Chairman and Chief Executive Officer Conference Call Participants Shaun Kelley - Bank of America Duane Pfennigwerth - Evercore ISI Bill Crow - Raymond James Gregory Miller - Truist Securities Smedes Rose - Citi Ari Klein - BMO Capital Markets Anthony Powell - Barclays Jay Kornreich - SMBC Chris Darling - Green Street Operator Greetings and w ...

FORM10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-34571 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | | | Name of Each Excha ...

l'auberge del mar Pebblebrook Update on Recent Operating Trends December 2022 PEBBLEBROOK UPDATE ON RECENT OPERATING TRENDS Forward-Looking Statements This presentation contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of Pebblebrook Hotel Trust's (the "Company") business, financial condition, liquidity, results of operations, plans and objectives. These forward-looking statements are ...

Financial Data and Key Metrics Changes - Q3 total revenues exceeded expectations despite the negative impact of Hurricane Ian, with adjusted EBITDA above the top end of the outlook by $1.5 million [6][7] - Adjusted funds from operations were $0.66 per share, $0.01 above the top end of the outlook [7] - Same-property RevPAR exceeded Q3 2019 by 1.3%, marking the first quarter since the pandemic that surpassed 2019 results [8] - Q3 occupancy finished at 72.7%, indicating a substantial opportunity for revenue growth as it is only 85% recovered compared to 2019 [10] - Hotel EBITDA margin was 32.4%, down from 34.3% in 2019, reflecting effective cost management despite inflationary pressures [11] Business Line Data and Key Metrics Changes - Urban hotels showed significant recovery, with urban RevPAR down only 10.1% compared to Q3 2019, an improvement from 17.7% in Q2 [20] - Non-room revenue per occupied room rose 23.3% versus 2019, and total revenue per occupied room increased by 21% [9] - Same-property hotel EBITDA reached $130.9 million, 96.8% recovered to Q3 2019, marking the best quarter since the pandemic [10] Market Data and Key Metrics Changes - Urban markets, except Miami, achieved better RevPAR performance in Q3 compared to 2019, with significant gains in previously slow-recovering markets like Chicago and San Francisco [20][21] - The recovery in convention calendars is expected to positively impact the industry, particularly in San Francisco [22][23] Company Strategy and Development Direction - The company plans to invest $100 million to $110 million into the portfolio in 2022, focusing on ROI redevelopment projects expected to generate cash returns of 10% or higher [12] - The strategy includes a balanced segmentation between business and leisure, with a long-term view favoring leisure properties due to limited new supply [44][56] - The company aims to capitalize on the recovery of business, leisure, and inbound international travel, which are expected to normalize to levels significantly higher than 2019 [32] Management's Comments on Operating Environment and Future Outlook - Management has not seen signs of a slowdown in travel demand, despite monitoring for potential impacts from the Fed's actions [6] - The outlook for Q4 RevPAR is expected to be down 3% to flat compared to 2019, with a significant negative impact from the closure of LaPlaya [33] - Management remains optimistic about the recovery trajectory, citing strong demand and limited supply growth as favorable factors [32][60] Other Important Information - The company sold three hotels in Q3, generating $183.9 million in sales proceeds, and completed a $2 billion refinancing of credit facilities [17][18] - The estimated cost to remediate LaPlaya after Hurricane Ian is between $15 million and $25 million, with business interruption insurance expected to cover losses [15][16] Q&A Session Summary Question: How long for Naples properties to return to stabilized operations? - Management indicated it is hard to forecast but expects a quick recovery due to ongoing demand and city cleanup efforts [37][39] Question: Any change in meeting planners' behavior due to recession worries? - Management has not observed any changes in meeting planners' behavior or negotiations [40] Question: Thoughts on portfolio repositioning and urban market strategy? - Management sees no change in strategy, aiming for a balanced portfolio between business and leisure, and will continue to recirculate capital from urban markets [44][45] Question: Confidence in achieving $500 million hotel EBITDA estimates? - Management feels good about the bridge to recovery but does not expect to reach that figure by the end of next year due to ongoing adjustments and market conditions [58][60] Question: Capital allocation priorities amid potential distress in the market? - Management remains opportunistic and will assess capital allocation based on market conditions and asset valuations [66][69] Question: Dividend outlook for the future? - Management indicated that a dividend is likely in the second half of 2023, depending on the use of net operating losses and overall performance [91][93]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-34571 PEBBLEBROOK HOTEL TRUST (Exact Name of Registrant as Specified in Its Charter) Maryland 27-1055421 | Title of each class | Tradi ...

Pebblebrook Hotel Trust (NYSE:PEB) Q2 2022 Earnings Conference Call July 27, 2022 9:30 AM ET Company Participants Raymond Martz - Chief Financial Officer Jon Bortz - Chairman and Chief Executive Officer Tom Fisher - Chief Investment Officer Conference Call Participants Dori Kesten - Wells Fargo Gregory Miller - Truist Securities Bill Crow - Raymond James Neil Malkin - Capital One Securities Aryeh Klein - BMO Capital Markets Smedes Rose - Citi Shaun Kelley - Bank of America Michael Bellisario - Baird Operato ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) This section presents Pebblebrook Hotel Trust's unaudited consolidated financial statements, highlighting significant revenue growth and a return to net income in Q2 2022 driven by hotel industry recovery Consolidated Balance Sheet Highlights (Unaudited) | Account | June 30, 2022 ($ in thousands) | December 31, 2021 ($ in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$6,388,925** | **$6,261,190** | | Investment in hotel properties, net | $6,039,477 | $6,079,333 | | Hotels held for sale | $146,805 | $— | | Cash and cash equivalents | $32,046 | $58,518 | | **Total Liabilities** | **$3,196,249** | **$3,097,285** | | Debt | $2,517,751 | $2,441,888 | | **Total Equity** | **$3,192,676** | **$3,163,905** | Consolidated Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2022 ($ in thousands) | Three Months Ended June 30, 2021 ($ in thousands) | Six Months Ended June 30, 2022 ($ in thousands) | Six Months Ended June 30, 2021 ($ in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$397,524** | **$163,314** | **$655,592** | **$246,957** | | Operating Income (Loss) | $51,944 | $26,255 | $(25,719) | $(69,880) | | Net Income (Loss) | $28,797 | $1,428 | $(71,419) | $(120,012) | | Net Income (Loss) Attributable to Common Shareholders | $16,646 | $(8,564) | $(94,228) | $(137,285) | | **Diluted EPS** | **$0.12** | **$(0.07)** | **$(0.72)** | **$(1.05)** | Consolidated Statement of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Six Months Ended June 30, 2022 ($ in thousands) | Six Months Ended June 30, 2021 ($ in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $142,629 | $(2,283) | | Net cash provided by (used in) investing activities | $(216,691) | $127,792 | | Net cash provided by (used in) financing activities | $44,605 | $61,201 | | **Net change in cash** | **$(29,457)** | **$186,710** | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes support the financial statements, covering the company's 54-hotel portfolio, recent acquisitions, total debt, impairment losses, and compliance with debt covenants - As of June 30, 2022, the Company owned **54 hotels** with **13,415 guest rooms**, with results improving through the first six months of 2022 and the Company exiting its debt covenant waiver period[33](index=33&type=chunk)[35](index=35&type=chunk) - During the six months ended June 30, 2022, the company acquired two properties for a total of **$330.0 million** and sold one property for **$77.0 million**[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - For the six months ended June 30, 2022, the Company recognized an impairment loss of **$73.3 million** related to two hotels, determined using Level 2 fair value measurements based on marketing efforts[51](index=51&type=chunk) Total Debt Outstanding as of June 30, 2022 | Debt Type | Balance Outstanding ($ in thousands) | | :--- | :--- | | Revolving credit facilities | $100,000 | | Unsecured term loans | $1,402,760 | | Convertible senior notes | $745,868 | | Senior unsecured notes | $49,879 | | Mortgage loans | $219,244 | | **Total Debt** | **$2,517,751** | Revenue by Geographic Location (Six Months Ended June 30) | Location | 2022 Revenue ($ in thousands) | 2021 Revenue ($ in thousands) | | :--- | :--- | :--- | | Southern Florida/Georgia | $165,525 | $73,973 | | San Diego, CA | $137,459 | $56,144 | | Boston, MA | $107,653 | $33,212 | | Los Angeles, CA | $81,113 | $29,781 | | San Francisco, CA | $46,317 | $12,129 | | **Total** | **$655,592** | **$246,957** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) This section details the company's significant operational and financial recovery in H1 2022, driven by strong leisure travel demand and improved key performance metrics, while acknowledging ongoing uncertainties - Overall performance has been led by the recovery of leisure travel, driving resort revenue to pre-pandemic levels, with corporate and group business recovery increasing substantially, and the company exiting its debt covenant waiver period at the end of Q2 2022[129](index=129&type=chunk)[130](index=130&type=chunk) Same-Property Hotel Operating Statistics | Metric | For the six months ended June 30, 2022 | For the six months ended June 30, 2021 | | :--- | :--- | :--- | | Same-Property Occupancy | 58.9% | 32.4% | | Same-Property ADR | $309.86 | $255.57 | | Same-Property RevPAR | $182.41 | $82.70 | Reconciliation to FFO and EBITDAre (Six Months Ended June 30) | Metric ($ in thousands) | 2022 | 2021 | | :--- | :--- | | Net Income (Loss) | $(71,419) | $(120,012) | | FFO | $121,030 | $(59,792) | | EBITDAre | $166,942 | $(9,380) | - Total hotel revenues for the six months ended June 30, 2022, increased by **$408.6 million** compared to the same period in 2021, driven by acquisitions and increased travel demand[147](index=147&type=chunk) - The company plans to invest a total of **$100.0 million to $120.0 million** in capital investments in 2022 for redevelopment and repositioning projects at several key properties[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) This section outlines the company's market risk exposure, primarily from interest rate fluctuations on variable-rate debt, which is mitigated through interest rate swap agreements - The company is exposed to market risk from changes in interest rates, with **$628.2 million** (**24.8%** of total indebtedness) subject to variable interest rates as of June 30, 2022[185](index=185&type=chunk) - A **0.1 percent (10 basis point)** change in interest rates on variable rate debt would result in an approximate **$0.6 million** change in annual interest expense[185](index=185&type=chunk) - To manage interest rate risk, the company has entered into interest rate swap agreements with an aggregate notional amount of **$1.0 billion** to hedge variable interest rates on its unsecured term loans[184](index=184&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are **effective** as of the end of the period covered by the report[186](index=186&type=chunk) - There have been **no material changes** to the company's internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[187](index=187&type=chunk) [PART II. OTHER INFORMATION](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings.) The company is not currently involved in any material litigation, facing only routine claims not expected to materially affect its financial condition - The Company is **not presently subject to any material litigation**, nor is any material litigation threatened against it, other than routine actions arising in the ordinary course of business[190](index=190&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors.) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for FY2021 - There have been **no material changes** from the risk factors disclosed in the 'Risk Factors' section of the Annual Report on Form 10-K for the year ended December 31, 2021[191](index=191&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This section details the company's common share repurchase programs, noting no repurchases in Q2 2022 and remaining availability under existing and future programs - **No common shares were repurchased** by the Company during the quarter[192](index=192&type=chunk) - As of June 30, 2022, approximately **$56.6 million** remained available for repurchase under the company's **$150.0 million** share repurchase program[192](index=192&type=chunk) [Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) The company reported no defaults upon its senior securities during the period - **None**[193](index=193&type=chunk) [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is not applicable to the company - **Not applicable**[194](index=194&type=chunk) [Other Information](index=37&type=section&id=Item%205.%20Other%20Information.) The company reported no information for this item - **None**[195](index=195&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits.) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO and XBRL data files - The exhibits filed with this report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, and Inline XBRL documents[197](index=197&type=chunk)

Pebblebrook Hotel Trust (NYSE:PEB) Q1 2022 Earnings Conference Call April 27, 2022 9:00 AM ET Company Participants Jon Bortz - Chairman and CEO Raymond Martz - CFO Conference Call Participants Neil Malkin - Capital One Securities Shaun Kelley - Bank of America Dori Kesten - Wells Fargo Bill Crow - Raymond James Aryeh Klein - BMO Capital Markets Michael Bellisario - Baird Floris Van Dijkum - Compass Point Anthony Powell - Barclays Jay Kornreich - SMBC Operator Greetings and welcome to the Pebblebrook Hotel T ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements.) Q1 2022 saw revenues of $258.1 million, a reduced net loss, and positive operating cash flow, driven by travel demand recovery [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased slightly to $6.18 billion as of March 31, 2022, primarily due to reduced hotel property investments, while cash increased Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2022 (Unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Investment in hotel properties, net | $5,975,857 | $6,079,333 | | Cash and cash equivalents | $69,446 | $58,518 | | **Total assets** | **$6,179,373** | **$6,261,190** | | **Liabilities & Equity** | | | | Debt | $2,443,090 | $2,441,888 | | Total liabilities | $3,094,439 | $3,097,285 | | Total equity | $3,084,934 | $3,163,905 | | **Total liabilities and equity** | **$6,179,373** | **$6,261,190** | [Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q1 2022 total revenues surged to $258.1 million, with an improved operating loss of $77.7 million despite a $61.0 million impairment loss Consolidated Statements of Operations (in thousands, except per-share data) | Metric | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | Total revenues | $258,068 | $83,643 | | Total operating expenses | $335,731 | $179,778 | | Impairment loss | $60,983 | $14,856 | | Operating income (loss) | $(77,663) | $(96,135) | | Net income (loss) | $(100,216) | $(121,440) | | Net income (loss) attributable to common shareholders | $(110,874) | $(128,721) | | Net income (loss) per share, diluted | $(0.85) | $(0.98) | [Consolidated Statements of Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Equity) Total equity decreased to $3.08 billion due to a net loss and shareholder distributions, partially offset by other comprehensive income - Total equity decreased to **$3.08 billion** at March 31, 2022, from **$3.16 billion** at December 31, 2021[24](index=24&type=chunk) - The decrease in equity was mainly due to a net loss of **$99.5 million** attributable to the company and distributions of **$11.3 million** to preferred shareholders and **$1.1 million** to common shareholders[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2022 saw net cash provided by operating activities of $38.8 million, a turnaround from the prior year, resulting in a net cash increase Consolidated Statements of Cash Flows Highlights (in thousands) | Activity | Three months ended March 31, 2022 | Three months ended March 31, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $38,832 | $(7,136) | | Net cash provided by (used in) investing activities | $(19,953) | $(9,670) | | Net cash provided by (used in) financing activities | $(15,173) | $5,138 | | **Net change in cash and cash equivalents and restricted cash** | **$3,706** | **$(11,668)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(unaudited)) Notes detail accounting policies, hotel portfolio, COVID-19 impact, a $61.0 million impairment loss, liquidity, and a subsequent hotel acquisition contract - As of March 31, 2022, the Company owned **53 hotels** with **13,247 guest rooms**[31](index=31&type=chunk) - The COVID-19 pandemic has had a significant negative impact, but results improved in Q1 2022 due to strong leisure travel. The company believes it has sufficient liquidity of **$694.4 million** to meet obligations for the next 12 months[35](index=35&type=chunk)[36](index=36&type=chunk) - In Q1 2022, the company recognized a **$61.0 million** impairment loss related to two hotels, determined using Level 2 fair value inputs based on marketing efforts[48](index=48&type=chunk) - Subsequent to the quarter end, on April 21, 2022, the company executed a contract to acquire the Inn on Fifth in Naples, Florida, with the purchase expected to be completed by the end of Q2 2022[109](index=109&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses significant Q1 2022 operational improvements driven by travel recovery, strong liquidity, planned capital investments, and debt covenant compliance - The demand recovery has been led by strong leisure travel, with a slower recovery in business and group travel. Resort properties are operating at or above pre-pandemic levels[117](index=117&type=chunk) Same-Property Hotel Operating Statistics (Q1 2022 vs Q1 2021) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Same-Property Occupancy | 48.3% | 22.1% | | Same-Property ADR | $297.29 | $250.47 | | Same-Property RevPAR | $143.61 | $55.33 | | Same-Property Total RevPAR | $219.75 | $89.02 | Non-GAAP Financial Measures Reconciliation (in thousands) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net income (loss) | $(100,216) | $(121,440) | | FFO | $19,777 | $(51,251) | | EBITDAre | $42,439 | $(25,807) | - The company expects to invest a total of **$100.0 million to $120.0 million** in capital investments in 2022, including significant redevelopment and repositioning projects[156](index=156&type=chunk) - As of March 31, 2022, the company had total liquidity of **$694.4 million**, consisting of cash, restricted cash, and available borrowings on its senior unsecured revolving credit facility[135](index=135&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company faces interest rate risk from $454.6 million in variable-rate debt, mitigated by interest rate swaps, with a 0.1% rate change impacting annual expense by $0.5 million - As of March 31, 2022, **$454.6 million** (**18.5%**) of the company's total debt was subject to variable interest rates[164](index=164&type=chunk) - A **0.1%** change in interest rates on variable-rate debt would impact annual interest expense by approximately **$0.5 million**[164](index=164&type=chunk) - The company utilizes interest rate swap agreements to hedge against interest rate fluctuations on its unsecured term loans[163](index=163&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective as of the end of the period covered by the report[165](index=165&type=chunk) - No material changes to internal control over financial reporting occurred during the most recent fiscal quarter[166](index=166&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings.) The company is not currently subject to any material litigation, nor is any material litigation threatened against it - The Company is not presently subject to any material litigation nor, to the Company's knowledge, is any material litigation threatened against the Company[169](index=169&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors.) No material changes have occurred from the risk factors previously disclosed in the Annual Report on Form 10-K for 2021 - There have been no material changes from the risk factors disclosed in the "Risk Factors" section of the Annual Report on Form 10-K for the year ended December 31, 2021[170](index=170&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) No common shares were repurchased in Q1 2022, with $56.6 million remaining available under the existing $150.0 million share repurchase program - No shares were repurchased during the period from January 1, 2022, to March 31, 2022[171](index=171&type=chunk) - As of March 31, 2022, approximately **$56.6 million** remained available for repurchase under the company's **$150.0 million** share repurchase program authorized in 2016[171](index=171&type=chunk) [Defaults Upon Senior Securities](index=32&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) None - None[172](index=172&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) Not applicable - Not applicable[173](index=173&type=chunk) [Other Information](index=32&type=section&id=Item%205.%20Other%20Information.) None - None[174](index=174&type=chunk) [Exhibits](index=33&type=section&id=Item%206.%20Exhibits.) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - The report includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[176](index=176&type=chunk) - Interactive Data Files (XBRL) are submitted as part of the filing[176](index=176&type=chunk)[177](index=177&type=chunk)