Pebblebrook Hotel Trust Revises Outlook Due to Impact from Superstorm Sandy

  Pebblebrook Hotel Trust Revises Outlook Due to Impact from Superstorm Sandy

       Reiterates No Significant Property Damage from Superstorm Sandy

Business Wire

BETHESDA, Md. -- November 12, 2012

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today revised its 2012
Outlook to account for the impact from Superstorm Sandy and this past week’s
nor’easter. The Company’s revised financial expectations for 2012 are as

               Current               Previous
                                                        Change in Outlook
               2012 Outlook          2012 Outlook
               Low       High        Low       High        Low       High
               ($ in millions, except per share and RevPAR data
Adjusted       $ 110.5   $ 112.5     $ 112.0   $ 114.0     ($1.5  )  ($1.5  )
Adjusted FFO   $ 62.0    $ 64.0      $ 63.5    $ 65.5      ($1.5  )  ($1.5  )
Adjusted FFO
per diluted    $ 1.09    $ 1.12      $ 1.12    $ 1.15      ($0.03 )  ($0.03 )
This amended 2012 Outlook is based on the following estimates and assumptions:
RevPAR           7.4   %   7.9   %     8.0   %   8.5   %   (60 BPS)  (60 BPS)
Portfolio      $ 124.5   $ 126.5     $ 126.0   $ 128.0     ($1.5  )  ($1.5  )
Hotel EBITDA     27.3  %   27.5  %     27.6  %   27.8  %   (0.3   %) (0.3   %)
Hotel EBITDA   215 bps   265 bps     250 bps   300 bps     (35 bps)  (35 bps)

The Company’s revised financial expectations for the fourth quarter of 2012
are as follows:

                   Current             Previous

                  Fourth Quarter     Fourth Quarter     Change in Outlook

                   2012 Outlook        2012 Outlook
                   Low      High       Low      High       Low       High
                   ($ in millions, except per share and RevPAR data
Adjusted EBITDA    $ 28.3   $ 30.3     $ 29.8   $ 31.8     ($1.5  )  ($1.5  )
Adjusted FFO       $ 14.5   $ 16.5     $ 16.0   $ 18.0     ($1.5  )  ($1.5  )
Adjusted FFO per   $ 0.24   $ 0.28     $ 0.27   $ 0.31     ($0.03 )  ($0.03 )
diluted share
This amended fourth quarter 2012 Outlook is based on the following estimates
and assumptions:
Portfolio RevPAR     2.5  %   4.5  %     4.5  %   6.5  %   (200 BPS) (200 BPS)
Portfolio Hotel    $ 32.3   $ 34.3     $ 33.8   $ 35.8     ($1.5  )  ($1.5  )
Portfolio Hotel      27.2 %   27.7 %     28.0 %   28.5 %   (0.8   %) (0.8   %)
Portfolio Hotel
EBITDA Margin      20 bps   70 bps     100 bps  150 bps    (80 bps)  (80 bps)

“ Our revised outlook reflects the estimated impact from Superstorm Sandy, as
well as the nor’easter this past week,” said Jon Bortz, Chairman, President
and Chief Executive Officer of Pebblebrook Hotel Trust. “Unfortunately, both
storms significantly hindered travel in and out of the Northeast and
Mid-Atlantic regions before, during and after the storms. The negative impact
on our business was felt at our hotels throughout the United States as
cancellations, no-shows and limited new bookings combined to produce enough
lost revenue and additional expenses to warrant this revision to our outlook.
We are diligently and aggressively pursuing the mitigation of our lost income
through our existing insurance policies. Fortunately, none of our properties
suffered any significant physical damage and we have no reported injuries from
Superstorm Sandy.”

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust is a publicly traded real estate investment trust
(“REIT”) organized to opportunistically acquire and invest primarily in upper
upscale, full-service hotels located in urban markets in major gateway cities.
The Company owns 25 hotels, including 19 wholly owned hotels with a total of
4,615 guest rooms and a 49% joint venture interest in six hotels with a total
of 1,733 guest rooms. The Company owns, or has an ownership interest in,
hotels located in ten states and the District of Columbia, including 16
markets: Los Angeles, California; San Diego, California; San Francisco,
California; Santa Monica, California; West Hollywood, California; Miami,
Florida; Buckhead, Georgia; Bethesda, Maryland; Boston, Massachusetts;
Minneapolis, Minnesota; New York, New York; Portland, Oregon; Philadelphia,
Pennsylvania; Columbia River Gorge, Washington; Seattle, Washington; and
Washington, DC. For more information, please visit

This press release contains certain “forward-looking statements” made pursuant
to the safe harbor provisions of the Private Securities Reform Act of 1995.
Forward-looking statements are generally identifiable by use of
forward-looking terminology such as “may,” “will,” “should,” “potential,”
“intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,”
“believe,” “could,” “project,” “predict,” “forecast,” “continue,” “assume,”
“plan,” references to “outlook” or other similar words or expressions.
Forward-looking statements are based on certain assumptions and can include
future expectations, future plans and strategies, financial and operating
projections and forecasts and other forward-looking information and estimates.
Examples of forward-looking statements include the following: projections and
forecasts of U.S. GDP growth, U.S. hotel industry RevPAR growth, the Company’s
net income, FFO, EBITDA, Adjusted FFO, Adjusted EBITDA, RevPAR, EBITDA Margin
and EBITDA Margin Growth, hotel-level EBITDA and EBITDA margin, and the
Company’s expenses, share count or other financial items; descriptions of the
Company’s plans or objectives for future operations, acquisitions or services;
forecasts of the Company’s future economic performance; forecasts of hotel
industry performance; expectations about the Company’s financing activity; and
descriptions of assumptions underlying or relating to any of the foregoing
expectations including assumptions regarding the timing of their occurrence.
These forward-looking statements are subject to various risks and
uncertainties, many of which are beyond the Company’s control, which could
cause actual results to differ materially from such statements. These risks
and uncertainties include, but are not limited to, the state of the U.S.
economy and the supply of hotel properties, and other factors as are described
in greater detail in the Company’s filings with the Securities and Exchange
Commission, including, without limitation, the Company’s Annual Report on Form
10-K for the year ended December 31, 2011. Unless legally required, the
Company disclaims any obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.

For further information about the Company’s business and financial results,
please refer to the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Risk Factors” sections of the
Company’s SEC filings, including, but not limited to, its Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained
at the Investor Relations section of the Company’s website at

All information in this release is as of November 12, 2012. The Company
undertakes no duty to update the statements in this release to conform the
statements to actual results or changes in the Company’s expectations.

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Pebblebrook Hotel Trust
Raymond D. Martz, 240-507-1330
Chief Financial Officer
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