Pebblebrook Hotel Trust(PEB) - 2025 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2025 was $19.3 million, a decrease of 40.2% compared to Q2 2024[1] - Adjusted EBITDAre for Q2 2025 was $117.0 million, exceeding the midpoint of the Company's outlook by $6.5 million[1] - Same-Property Hotel EBITDA for Q2 2025 was $115.8 million, reflecting a 6.7% decline from Q2 2024[5] - Net income attributable to common shareholders for the three months ended June 30, 2025, was $7.424 million, a decrease of 63.5% from $20.304 million in the same period of 2024[33] - Funds from Operations (FFO) for the three months ended June 30, 2025, were $76.869 million, down 14.0% from $89.454 million in the prior year[49] - Adjusted FFO available to common share and unit holders for the three months ended June 30, 2025, was $77.442 million, a decrease of 6.0% compared to $83.760 million in the same period of 2024[49] - Net income for the three months ended June 30, 2025, was $19.285 million, a decrease from $32.239 million in the same period of 2024[51] - Adjusted EBITDAre for the three months ended June 30, 2025, was $116.959 million, down from $123.471 million in 2024[51] Revenue and Occupancy - Same-Property Total RevPAR increased by 1.3% year-over-year, reaching $371, while excluding Los Angeles properties, it rose by 2.7% to $389[5] - Same-Property RevPAR for the three months ended June 30, 2025, was $236.56, a slight increase of 0.6% from $235.09 in 2024[57] - Total hotel revenues for the three months ended June 30, 2025, were $394.105 million, compared to $388.868 million in 2024[65] - Same-Property Total RevPAR for the six months ended June 30, 2025, was $370.93, reflecting a 1.3% increase from $366.10 in 2024[57] - The occupancy rate for 2024 is forecasted to average 70%, down from 81% in 2019[69] - For Q1 2025, occupancy is projected at 61%, showing a slight improvement from 60% in Q1 2024[69] Future Outlook - The Company anticipates a net loss for 2025 between ($26.5) million and ($12.0) million, with an adjusted FFO per diluted share projected between $1.47 and $1.59[19] - For Q3 2025, net income is expected to be between $4.0 million and $11.0 million, with Adjusted EBITDAre ranging from $93.5 million to $100.5 million[21] - Same-Property RevPAR for Q3 2025 is forecasted to be between $230 and $237, with a variance of -4.0% to -1.0% compared to 2024[22] - The company expects a net income (loss) range of $4 million to $11 million for the three months ending September 30, 2025[53] - FFO available to common share and unit holders is projected to be between $44 million and $51 million for the three months ending September 30, 2025[54] Capital and Investments - Capital investments in Q2 totaled $21.0 million, with full-year expectations set at $65 to $75 million[11] - The weighted average interest rate on the Company's debt is 4.2%, with a net debt to trailing 12-month corporate EBITDA ratio of 5.8x[15] - Total assets as of June 30, 2025, amount to $5,653.3 million, a slight decrease from $5,693.3 million at the end of 2024[31] - Total liabilities are reported at $2,922.2 million, compared to $2,905.5 million at the end of 2024[31] - Shareholders' equity decreased to $2,638.6 million from $2,697.4 million at the end of 2024[31] Operational Highlights - Newport Harbor Island Resort outperformed its forecast by $1.8 million, benefiting from a recent comprehensive redevelopment[1] - The Curator Hotel & Resort Collection includes 81 member hotels and 123 master service agreements, enhancing operational efficiencies and technology access[17] - Same-Property Occupancy increased to 78.2% for the three months ended June 30, 2025, compared to 76.3% in 2024, reflecting a 2.5% increase[57] - Total hotel operating expenses for the three months ended June 30, 2025, were $355.149 million, an increase of 5.7% from $336.139 million in the same period of 2024[33] - Operating income for the three months ended June 30, 2025, was $52.388 million, a decrease of 14.1% from $60.971 million in the same period of 2024[33] Strategic Adjustments - The company continues to focus on strategic adjustments to enhance financial performance, including excluding certain costs from Adjusted FFO and Adjusted EBITDAre[39] - The company has excluded LaPlaya Beach Resort & Club from all time periods due to its closure following Hurricane Ian[70]