Pebblebrook Hotel Trust(PEB) - 2024 Q4 - Annual Results

Financial Performance - Net income for 2024 was $0.0 million, with Same-Property Total RevPAR growth of 2.1% compared to 2023[1] - Adjusted FFO per diluted share increased by 5.0% to $1.68 in 2024, up from $1.60 in 2023[1] - Same-Property Hotel EBITDA for 2024 was $350.4 million, reflecting a 0.9% increase from 2023[1] - Total revenues for Q4 2024 were $337.6 million, a slight increase of 0.5% compared to $334.1 million in Q4 2023[41] - Net income attributable to common shareholders for Q4 2024 was a loss of $61.1 million, compared to a loss of $45.0 million in Q4 2023[41] - Funds from Operations (FFO) for Q4 2024 were $53.8 million, up 84.3% from $29.2 million in Q4 2023[53] - Adjusted FFO available to common share and unit holders for Q4 2024 was $23.9 million, a decrease of 4.0% from $24.9 million in Q4 2023[53] - The company reported a net loss of $49.8 million for Q4 2024, compared to a net loss of $41.9 million in Q4 2023[53] - The company’s net income (loss) per share available to common shareholders, basic, was $(0.51) for Q4 2024, compared to $(0.37) for Q4 2023[41] - EBITDA for the three months ended December 31, 2024, was $36,308 thousand, down from $46,583 thousand in 2023, indicating a decrease of 22%[55] Capital Investments and Financing - Capital investments in 2024 totaled approximately $91 million, completing a $525 million multi-year capital reinvestment program[1] - In 2024, Pebblebrook completed $1.6 billion in debt financings, enhancing balance sheet flexibility and eliminating significant maturities until December 2026[22] - As of December 31, 2024, the Company had approximately $217.6 million in cash and $642.6 million of undrawn availability on its $650 million senior unsecured revolving credit facilities[23] - In 2025, capital investments are expected to be between $65 million and $75 million, significantly lower than previous years[1] Outlook and Projections - The 2025 outlook projects Same-Property Total RevPAR growth rate between 1.8% and 3.7%[1] - The Company declared a quarterly cash dividend of $0.01 per share on its common shares as of December 16, 2024[24] - The 2025 Outlook estimates a net loss ranging from $15.5 million to $1.5 million, with Adjusted EBITDAre projected between $341.5 million and $355.5 million[28] - The Q1 2025 outlook includes a net loss estimate between $33.9 million and $29.9 million, with Adjusted FFO per diluted share projected between $0.09 and $0.13[29] Market and Operational Statistics - The company owns 46 hotels and resorts, totaling approximately 12,000 guest rooms across 13 urban and resort markets[31] - Approximately 91% of the Company's $2.3 billion in consolidated debt is effectively fixed at a 4.0% interest rate[22] - The weighted-average maturity of the Company's debt is approximately 3.1 years, with a weighted-average interest rate of 4.2%[22] - Same-Property Occupancy increased to 67.4% for the three months ended December 31, 2024, from 64.3% in 2023, representing a 4.8% increase[62] - Same-Property Total RevPAR for the three months ended December 31, 2024, was $304.43, up 1.8% from $299.08 in 2023[62] - Same-Property Revenues for the three months ended December 31, 2024, totaled $321,605 thousand, compared to $315,747 thousand in 2023, showing an increase of 1.1%[70] Impact of External Events - The company anticipates a $9.0 million impact on Same-Property Hotel EBITDA due to the Los Angeles fires, reducing Adjusted FFO by $0.07 per diluted share[1] - The impact of the LA fires is estimated to reduce Same-Property RevPAR growth by 330 to 430 basis points in Q1 2025 and 100 to 130 basis points for the full year[28] Historical Performance - In 2023, the full-year hotel revenues were $1,365.7 million, slightly down from $1,361.0 million in 2019, indicating a recovery trend post-pandemic[73] - The average daily rate (ADR) in 2023 was $306, up from $263 in 2019, reflecting a 16.3% increase[73] - The occupancy rate for 2023 was 68%, compared to 81% in 2019, showing a recovery but still below pre-pandemic levels[73] - The hotel EBITDA margin for 2023 was 25.6%, down from 30.7% in 2019, indicating pressure on profitability[73] - The company has excluded LaPlaya Beach Resort & Club from its operating results due to its closure following Hurricane Ian, affecting comparability[74] Regional Performance - The total EBITDA for Boston hotels in 2023 was $85.5 million, showing a recovery from a loss of $15.0 million in 2022, indicating a significant turnaround[84] - The San Diego hotel market reported a total EBITDA of $45.0 million in 2023, down from $46.8 million in 2022, reflecting a decrease of about 3.8%[84] - The overall EBITDA for the San Diego Urban market in 2023 was $34.3 million, a decrease from $38.2 million in 2022, reflecting a decline of about 10.2%[84] Future Strategies - The company plans to continue expanding its market presence and exploring new acquisition opportunities in the upcoming quarters[87] - Future guidance indicates a focus on enhancing operational efficiency and increasing profitability across all hotel segments[87]