CORRECTING and REPLACING Pebblebrook Hotel Trust and Denihan Hospitality Group Complete $410.0 Million, 3.67 Percent, Secured

  CORRECTING and REPLACING Pebblebrook Hotel Trust and Denihan Hospitality
  Group Complete $410.0 Million, 3.67 Percent, Secured Debt Financing Pebblebrook Hotel Trust

Business Wire

BETHESDA, Md. -- December 28, 2012

Fourth graph, first sentence of release should read:...the Company has $466.4
million in consolidated debt and $200.9 million in unconsolidated,
non-recourse debt... (sted ...the Company has $466.4 million in consolidated
debt and $267.9 million in unconsolidated, non-recourse debt...).

The corrected release reads:

                     3.67 PERCENT, SECURED DEBT FINANCING

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that the
joint venture between Pebblebrook Hotel Trust and Denihan Hospitality Group,
which owns six upper upscale hotels (the “Manhattan Collection”) in New York,
New York, has successfully executed a new $410.0 million interest-only,
non-recourse, secured loan at a fixed annual interest rate of 3.67 percent.
The loan has a term of five years and is secured by a first mortgage on the
Affinia Manhattan, Affinia Shelburne, Affinia 50, Affinia Gardens and The
Benjamin, comprising a total of 1,491 guest rooms. Proceeds from the loan will
be used to fully pay off the existing mortgage on the Manhattan Collection and
for general business purposes.

“We are thrilled with the completion of this debt financing and our ability to
access the debt markets at historically attractive terms,” said Raymond D.
Martz, Chief Financial Officer for Pebblebrook Hotel Trust. “Our new debt
financing has more favorable terms, a comparable interest rate and
significantly lower risk than the previous outstanding loan. As a result of
this financing, Pebblebrook has no debt maturities until 2016 and we continue
to have 12 hotels unencumbered by debt, representing nearly $1.0 billion of
invested assets.”

In addition to the successful refinancing of the Manhattan Collection debt,
Pebblebrook has provided $50 million of preferred capital to the joint venture
between Pebblebrook Hotel Trust (49 percent interest) and Denihan Hospitality
Group (51 percent interest). This preferred capital has a five and a half year
term, an annual coupon rate of 9.75 percent and is prepayable at any time by
the joint venture.

Following the application of proceeds from the Manhattan Collection, the
Company has $466.4 million in consolidated debt and $200.9 million in
unconsolidated, non-recourse debt at weighted average interest rates of 4.09
percent and 3.67 percent, respectively. The Company has no outstanding balance
outstanding on its $200.0 million senior unsecured credit facility. The
unconsolidated debt amount represents the Company’s 49 percent pro rata
interest in the Manhattan Collection.

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

About Denihan Hospitality Group

Denihan Hospitality Group is a privately-held, full-service hotel management
and development company that owns and/or operates 15 boutique hotels in major
urban markets in the U.S. Over the past 50 years, the Denihan family has built
a world-class lodging investment platform within the boutique hotel space,
creating value by acquiring, repositioning and managing independent hotels.

More details can be found at

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

All information in this release is as of December 28, 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.

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