Pebblebrook Hotel Trust (PEB) Updates FY16 Outlook to Reflect Property Sales, Preferred Equity Offering

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that it has revised its 2016 and second quarter 2016 outlook due to the completed sales of Viceroy Miami, The Redbury Hotel and the land parcel at Revere Hotel Boston Common. In addition, the revised outlook incorporates the expected closing of the $125.0 million, 6.375% Series D Preferred Shares offering, as well as second quarter-to-date hotel operating performance. The Company’s revised outlook for 2016 is as follows:

“We are very pleased with our recently announced property sales and preferred equity offering, all of which have been incorporated into our updated outlook,” said Jon Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “We are also updating our second quarter outlook to reflect our quarter-to-date hotel operating performance. Our same-property RevPAR growth for April was 1.5% and May was approximately 4.0 to 4.5%. Our performance in May was slightly weaker than our forecast and reflects the softer overall industry results for May. Since we expect this weaker than expected performance to continue in June, we are slightly reducing the high end of our second quarter outlook.”

The Company’s outlook for 2016 and the second quarter of 2016 assumes no additional acquisitions or dispositions beyond the hotels the Company owned as of June 6, 2016 and reflects the Company’s 49 percent interest in its six-hotel joint venture (the “Manhattan Collection”). As a result of the sales of Viceroy Miami and The Redbury Hotel, Same-Property numbers reflect the removal of those properties for the second quarter and the remainder of the year. The Company’s outlook also incorporates all of the expected disruption associated with the various renovations and repositionings at our properties, including The Westin Colonnade, Coral Gables, Union Station Hotel Nashville, Autograph Collection, Revere Hotel Boston Common, the Tuscan Fisherman’s Wharf, a Best Western Plus Hotel, Hotel Palomar Los Angeles Beverly Hills and Mondrian Los Angeles, all of which already have or are expected to commence renovations in 2016 or early 2017.

The Company’s estimates and assumptions, including the Company’s outlook for second quarter 2016, for Same-Property RevPAR, Same-Property RevPAR growth rate, Same-Property Room Revenue growth rate, Same-Property EBITDA, Same-Property EBITDA growth rate, Same-Property EBITDA Margin and Same-Property EBITDA Margin growth rate include the hotels owned as of June 6, 2016, as if they had been owned by the Company for all of 2015 and 2016, except for Hotel Vintage Portland, which is not included in the first quarter, Hotel Zeppelin San Francisco, which is not included in the first and fourth quarters and Viceroy Miami and The Redbury Hotel, both of which are not included in the second, third and fourth quarters.

If any of the foregoing estimates and assumptions prove to be inaccurate, actual results, including the outlook, may vary, and could vary significantly, from the amounts shown above.

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