Pebblebrook Hotel Trust (PEB) Issues In-Line FY15 FFO Outlook

Pebblebrook Hotel Trust (NYSE: PEB) provided its Outlook for 2015 (the “Outlook”). The Outlook, which assumes no additional acquisitions, incorporates the impact of the Company’s various capital investment projects and assumes continued improvement in economic activity, positive business travel trends and other significant assumptions, is as follows:

*** Consensus estimates call for FY15 FFO of $2.44.

“We believe 2015 will be another terrific year for the overall hotel industry and Pebblebrook as the U.S. economic recovery continues to strengthen and broaden,” noted Jon Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. “We expect that healthy demand growth from all segments including business, leisure transient, group and international will drive higher industry occupancy levels as supply growth remains well below demand growth. As a result, historically high and rising occupancies, particularly in most urban markets, should allow for a further increase in pricing power, leading to higher average daily rates. We are forecasting U.S. industry RevPAR will increase between 6.0% and 7.0% over 2014. Our portfolio, comprised of high quality hotels primarily located in major gateway cities with an emphasis on the west coast, should continue to outperform the industry by benefitting from their more favorable market dynamics, recent renovations and unique experiential products. We’re forecasting our Same-Property RevPAR to increase 6.5% to 7.5%, which takes into account the negative impact of expected renovation disruption at all of our hotels undergoing renovations throughout the year.”

The Company’s Outlook incorporates all of the expected disruption associated with the various renovations and repositionings at our properties including the Company’s 355-room Radisson Hotel Fisherman’s Wharf, with completion and relaunch as Hotel Zephyr expected in the second quarter of 2015; the Embassy Suites San Diego Bay – Downtown, with completion forecasted in the first quarter of 2015; the 125-room Hotel Vintage Plaza Portland, which is now closed and is scheduled to reopen as Hotel Vintage Portland upon completion of its renovation before the beginning of the second quarter of 2015; the 258-room W Los Angeles – Westwood, which is adding 39 new guestrooms and undergoing a full property renovation, all of which expected to be completed in the second quarter of 2015; the 242-room Dumont NYC, which will add 10 new guestrooms, and is expected to be completed in the third quarter of 2015; The Westin Colonnade Coral Gables, with its renovation and repositioning planned to commence in the third quarter of 2015 and be completed in the fourth quarter of 2015; and the Union Station Hotel, Autograph Collection, Prescott Hotel, Hotel Monaco Washington, D.C., and The Nines, a Luxury Collection Hotel, Portland, all of which are expected to commence rooms renovations in the fourth quarter, with completion planned in the first quarter of 2016.

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.

The Company will report financial results for the fourth quarter and full year 2014 on Tuesday, February 17, 2015, after the market closes. The Company will conduct its quarterly conference call on Wednesday, February 18, 2015, at 9:00 AM ET. To participate in the conference call, dial (888) 417-8465 approximately ten minutes before the call begins (8:50 AM ET), tell the operator that you are calling for Pebblebrook Hotel Trust’s Fourth Quarter and Full Year 2014 Earnings Conference Call, and state your full name and company affiliation, and you will then be connected to the call.

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