Pebblebrook Hotel Trust Completes $81.0 Million, 3.69 Percent, Secured Debt Financing

  Pebblebrook Hotel Trust Completes $81.0 Million, 3.69 Percent, Secured Debt
  Financing

Business Wire

BETHESDA, Md. -- December 27, 2012

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that it
has successfully executed a new $81.0 million non-recourse, secured loan with
PNC Bank, N.A. at a fixed annual interest rate of 3.69 percent. The loan has a
term of seven years and is secured by a first mortgage on the Company’s
450-room Westin Gaslamp Quarter in San Diego, California. Proceeds from the
loan will be used to fund future acquisitions and for general business
purposes.

“We are extremely pleased with the terms and execution of this debt financing,
and our continued ability to access the debt markets to reap the benefits of
the very attractive interest rate environment,” stated Raymond D. Martz, Chief
Financial Officer for Pebblebrook Hotel Trust. “Our balance sheet remains
strong, and we continue to be well capitalized to take advantage of
acquisition opportunities in the marketplace.”

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 www.pebblebrookhotels.com.

This press release contains certain “forward-looking statements” made pursuant
to the safe harbor provisions of the Private Securities Reform Act of 1995,
including with regard to the anticipated use of proceeds. 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. No assurance can be given that the
net proceeds of the offering will be used as indicated. 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.

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
www.pebblebrookhotels.com.

All information in this release is as of December 27, 2012. Except as required
by law, the Company undertakes no duty to update the statements in this
release to conform the forward-looking statements to actual results or changes
in the Company’s expectations.

  For additional information or to receive press releases via email, please
                             visit our website at
                          www.pebblebrookhotels.com

Contact:

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