Pebblebrook Hotel Trust Reports 2012 Results

  Pebblebrook Hotel Trust Reports 2012 Results

2012 Pro Forma RevPAR Increased 8.1 Percent; 2012 Pro Forma Hotel EBITDA Rose
                                 17.4 Percent

Business Wire

BETHESDA, Md. -- February 21, 2013

Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today reported results for
the fourth quarter and year ended December 31, 2012. The Company’s results
include the following:

                                                      
                              Fourth Quarter               Full Year
                              2012         2011          2012      2011
                              ($ in millions except per share and RevPAR data)
                                                                  
Net income to common          $2.6           $3.5          $8.3        $4.4
shareholders
Net income per diluted        $0.04          $0.07         $0.14       $0.08
share
                                                                       
Pro forma RevPAR              $177.93        $168.24       $173.82     $160.81
Pro forma Hotel EBITDA        $36.0          $34.2         $126.6      $107.8
Pro forma Hotel EBITDA        27.5%          27.0%         27.4%       24.8%
Margin
                                                                       
Adjusted EBITDA^(1)           $31.9          $28.1         $114.2      $79.3
Adjusted EBITDA growth        13.4%                        43.9%
rate
                                                                       
Adjusted FFO^(1)              $18.5          $16.5         $66.1       $48.9
Adjusted FFO per diluted      $0.30          $0.32         $1.17       $1.00
share^(1)
Adjusted FFO per diluted      (4.7%)                       17.5%
share growth rate
                                                                       

^(1) See tables later in this press release for a description of pro forma
information and reconciliations from net income to non-GAAP financial
measures, including earnings before interest, taxes, depreciation and
amortization ("EBITDA"), Adjusted EBITDA, Funds from Operations ("FFO"), FFO
per diluted share, Adjusted FFO and Adjusted FFO per diluted share.

For the details as to which hotels are included in Pro forma RevPAR, ADR,
Occupancy, Hotel Revenues, Hotel Expenses, Hotel EBITDA, Hotel EBITDA Margins
and Hotel EBITDA Per Room for the fourth quarter and full year ended December
31, 2012 appearing in the table above and elsewhere in the press release,
refer to the Pro Forma Property Inclusion Reference Table later in this press
release.

“We’re very pleased with our Company’s strong performance in 2012,” said Jon
E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel
Trust. “This was a very good year for the overall hotel industry and our
hotels benefitted from the continued resurgence in business transient, leisure
and international inbound travel. Despite the negative effects from Superstorm
Sandy, as well as the uncertainty surrounding the presidential election and
the fiscal cliff, hotel demand remained resilient in most of our markets. As a
result, our overall performance exceeded our expectations. Furthermore, we
were able to take advantage of opportunities to add five terrific hotels to
our portfolio in 2012, all located in major west coast gateway markets.”

2012 Highlights

  *Pro forma RevPAR: Pro forma room revenue per available room (“Pro forma
    RevPAR”) for the year ended December 31, 2012 increased by 8.1 percent
    over the same period of 2011 to $173.82. For 2012, Pro forma average daily
    rate (“Pro forma ADR”) grew 3.8 percent from the comparable period of 2011
    to $213.83 and Pro forma Occupancy improved 4.2 percent to 81.3 percent.
  *Pro forma Hotel EBITDA: The Company’s hotels generated $126.6 million of
    Pro forma Hotel EBITDA for the year ended December 31, 2012, an increase
    of 17.4 percent compared with the same period of 2011. For 2012, Pro forma
    Hotel Revenues climbed 6.2 percent, while Pro forma Hotel Expenses rose
    2.5 percent. As a result, Pro forma Hotel EBITDA Margin for the year ended
    December 31, 2012 increased 263 basis points to 27.4 percent as compared
    to the same period last year.
  *Pro forma Hotel EBITDA Per Room: The Company’s Pro Forma Hotel EBITDA Per
    Room for the year ended December 31, 2012 increased 16.7 percent from the
    comparable period of 2011 to $25,856.
  *Adjusted EBITDA: The Company’s Adjusted EBITDA for 2012 rose to $114.2
    million from $79.3 million in 2011, an increase of 43.9 percent.
  *Adjusted FFO: The Company’s Adjusted FFO increased 35.3 percent to $66.1
    million, compared with $48.9 million for the prior year period.
  *Dividends: During 2012, the Company declared dividends of $0.48 per share
    on its common shares, $1.96875 per share on its 7.875 percent Series A
    Cumulative Redeemable Preferred Shares and $2.00 per share on its 8.0
    percent Series B Cumulative Redeemable Preferred Shares.

Based on the Company’s 2013 outlook and the continued improvement in the
operating performance of the Company’s hotels, the Company expects to increase
its quarterly dividend on its common shares to $0.16 per share, commencing
with the dividend for the first quarter of 2013. This proposed increase
represents a 33.3 percent increase over the Company’s current quarterly
dividend of $0.12.

“The hotel industry’s fundamentals continued to strengthen in 2012, as demand
for hotel rooms in the U.S. climbed a very healthy 3.0 percent and supply
growth remained muted at only 0.5 percent, allowing for significant ADR
improvement and resulting in hotel industry RevPAR growth of 6.8 percent,”
added Mr. Bortz. “Pebblebrook’s RevPAR growth of 8.1 percent for 2012 exceeded
the industry’s results, as we benefitted from our strategy of investing
primarily in stronger urban markets in major gateway cities, and we continued
to see positive results from our property renovations and the asset management
and best practice initiatives we have implemented throughout our portfolio.
Travel demand was driven by growth in transient business and leisure travel,
as well as strong growth in inbound international travel, despite the
continued uncertainty surrounding the global economy, particularly in Europe.
Although a great deal of uncertainty remains regarding the debt ceiling and
the political process in Washington, we believe that the industry and the
Company will continue to benefit in 2013 from strong underlying fundamentals.”

Fourth Quarter Highlights

  *Pro forma RevPAR: Pro forma RevPAR in the fourth quarter of 2012 increased
    5.8 percent over the same period of 2011 to $177.93. Pro forma ADR grew
    3.6 percent from the fourth quarter of 2011 to $224.32. Pro forma
    Occupancy rose 2.1 percent to a robust 79.3 percent.
  *Pro forma Hotel EBITDA: The Company’s hotels generated $36.0 million of
    Pro forma Hotel EBITDA for the quarter ended December 31, 2012, climbing
    5.3 percent compared with the same period of 2011. Pro forma Hotel
    Revenues increased 3.8 percent, while Pro forma Hotel Expenses rose 3.2
    percent. As a result, Pro forma Hotel EBITDA Margin grew to 27.5 percent
    for the quarter ended December 31, 2012, representing an increase of 42
    basis points as compared to the same period last year.
  *Adjusted EBITDA: The Company’s Adjusted EBITDA increased to $31.9 million
    from $28.1 million in the prior year period, an increase of $3.8 million,
    or 13.4 percent.
  *Adjusted FFO: The Company’s Adjusted FFO climbed to $18.5 million from
    $16.5 million in the prior year period, an increase of 12.5 percent.
  *Dividends: On December 14, 2012, the Company declared a $0.12 per share
    quarterly dividend on its common shares, a $0.4921875 per share quarterly
    dividend on its 7.875 percent Series A Cumulative Redeemable Preferred
    Shares and a $0.50 per share quarterly dividend on its 8.0 percent Series
    B Cumulative Redeemable Preferred Shares.

Capital Reinvestment and Asset Management

During 2012, the Company made $58.6 million of capital improvements throughout
its portfolio, which includes the Company’s 49% interest in the joint venture
between Pebblebrook Hotel Trust and Denihan Hospitality Group (the “Manhattan
Collection”). The Company’s capital improvements included $11.5 million at the
Westin Gaslamp Quarter, $6.2 million at Hotel Zetta (formerly Hotel Milano),
$5.8 million at the Sheraton Delfina Santa Monica, $4.7 million at the
Mondrian Los Angeles and $4.4 million at the Sir Francis Drake.

During the second quarter of 2012, the Company completed the comprehensive
$25.0 million renovation and redevelopment of the Westin Gaslamp Quarter. This
multi-phase, multi-year renovation included the guest rooms, corridors, public
areas, meeting space, lobby, entry, porte cochere, exterior and restaurant, as
well as a re-concepting of the restaurant and the addition of meeting space.

In May 2012, the Company completed a comprehensive $9.8 million renovation of
the Sheraton Delfina, which included the hotel’s guest rooms, corridors,
meeting rooms, lobby and public space. Also in May 2012, the Company completed
a $5.0 million renovation of the Hotel Monaco Seattle, which included
renovating the guest rooms, corridors, lobby and meeting space.

In October 2012, the renovation, reconfiguration and expansion of the meeting
space and back of house at the Affinia Manhattan was completed, creating 2,200
square feet of additional meeting space. The renovations of the lobby and two
entrances of the property are expected to be complete in the second quarter of
2013. The Company expects to fund its 49 percent pro rata interest of the
total project costs with available cash.

“The recently completed capital investment programs at the Westin Gaslamp
Quarter, Sheraton Delfina, Argonaut, Mondrian Los Angeles and Hotel Monaco
Seattle, along with the prior year’s renovations of Affinia Manhattan, Sir
Francis Drake, Minneapolis Grand and InterContinental Buckhead, have provided
us with a sizable opportunity to generate higher room rates and increased
RevPAR penetration, which we expect will substantially increase profitability
and cash flow at each of these properties in 2013 and beyond,” continued Mr.
Bortz.

On November 1, 2012, the Company closed the Hotel Milano and commenced a
comprehensive renovation, repositioning and expansion of the hotel, which
included the creation of eight additional guest rooms, as well as a
re-concepting of the restaurant and all food and beverage operations. The
hotel will reopen any day now as Hotel Zetta and we expect the renovation to
be fully complete in March 2013.

In January 2013, the Company, along with its joint venture partner, commenced
an $18.0 to $20.0 million comprehensive renovation, reconfiguration and
expansion of the Affinia 50, which includes renovating the guest rooms,
corridors and public areas. The reconfiguration of the hotel will increase the
number of guest rooms from 210 to 251. This project is expected to be
substantially complete by the fourth quarter of 2013. The Company expects to
fund its 49 percent pro rata interest of the total project costs with
available cash.

In addition to its capital reinvestment programs, Pebblebrook continues to
implement a comprehensive array of asset management best practices and
initiatives throughout its portfolio to enhance hotel revenues and improve
operating efficiencies to promote expense controls and strong margin growth.
To date, the Company has identified approximately $13.9 million of annualized
best practices and asset management opportunities throughout its portfolio.

“We’re extremely pleased with the progress we continue to make implementing
our asset management initiatives and best practices across our hotels, as
illustrated by the strong EBITDA margin growth of 263 basis points we achieved
in 2012,” continued Mr. Bortz. “We greatly appreciate the hard work and
support of our hotel management teams, who continue to work collaboratively
with our asset managers to find new opportunities to grow revenues, reduce
expenses, improve operating efficiencies and increase our cash flow. We expect
to continue to improve our performance in 2013 and 2014 as these efficiencies
and operating enhancements are fully implemented.”

Acquisitions

In 2012, the Company successfully acquired five high-quality, upper upscale,
full-service hotels for a total investment of $275.8 million, with a total of
804 guest rooms. The Company’s five completed 2012 acquisitions are all
located in highly desirable major gateway cities in the United States.

“We’re very excited about the acquisitions we’ve made in 2012, investing in
high barrier to entry, urban markets in major gateway cities including San
Francisco, Seattle, Los Angeles/Westwood and Portland. We acquired these
hotels because they’re in great long-term markets and we believe they offer
excellent opportunities for outsized RevPAR growth, margin expansion and value
creation through renovations and the implementation of our asset management
and best practice initiatives,” commented Mr. Bortz.

Since its initial public offering in December 2009, the Company has acquired
26 properties (six through a joint venture) totaling $2.1 billion of invested
capital.

Capital Markets

During 2012, the Company completed numerous attractive capital market
transactions to help fund strategic growth and maintain its strong balance
sheet. The Company raised $215.4 million in net proceeds through common share
offerings and its ATM program, and originated $734.0 million of new debt.

  *On January 11, 2012, the Company completed a $46.0 million non-recourse,
    secured loan at a fixed annual interest rate of 4.36 percent and a term of
    five years. The loan is collateralized by a first mortgage on the 183-room
    Hotel Monaco Washington, DC.
  *On February 15, 2012, the Company completed a $47.0 million non-recourse,
    secured loan at a fixed annual interest rate of 4.25 percent and a term of
    five years. The loan is collateralized by a first mortgage on the 252-room
    Argonaut Hotel in San Francisco, California.
  *On May 18, 2012, the Company completed a $50.0 million non-recourse,
    secured loan at a fixed annual interest rate of 3.90 percent and a term of
    five years. The loan is collateralized by a first mortgage on the 306-room
    Hotel Sofitel Philadelphia in Philadelphia, Pennsylvania.
  *On June 22, 2012, the Company completed an underwritten public offering of
    5.2 million common shares at a price per share of $22.10, resulting in net
    proceeds of $109.8 million.
  *On July 13, 2012, the Company amended and restated its senior unsecured
    revolving credit facility. The amended credit facility was increased to
    $300 million, which is comprised of a $200 million unsecured revolving
    credit facility and a five-year, $100 million unsecured term loan. The
    pricing under the amended and restated credit facility was significantly
    reduced, and the facility now matures in July 2016 with an option to
    extend to July 2017.
  *On December 27, 2012, the Company completed an $81.0 million non-recourse,
    secured loan at a fixed annual interest rate of 3.69 percent and a term of
    seven years. The loan is collateralized by a first mortgage on the
    450-room Westin Gaslamp Quarter in San Diego, California.
  *On December 27, 2012, the Manhattan Collection, which owns six upper
    upscale hotels in New York, New York, successfully completed a new $410.0
    million interest-only, non-recourse, secured loan at a fixed annual
    interest rate of 3.67 percent and a term of five years. In addition to the
    successful refinancing of the Manhattan Collection debt, the Company
    provided $50 million of preferred capital to the Manhattan Collection.
    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 Manhattan
    Collection.
  *During 2012, the Company issued and sold 4,519,087 common shares under its
    ATM offering program at an average price of $23.72 per share, for total
    net proceeds of $105.6 million.

“We are delighted with our continued ability to access the debt and equity
capital markets at attractive terms, and by the strong support that our banks
and investors have continued to show in our investment strategy and management
team,” commented Raymond D. Martz, Chief Financial Officer of Pebblebrook
Hotel Trust. “This has allowed us to successfully refinance all of our debt
maturities at very attractive interest rates, further strengthen our balance
sheet, maintain our targeted conservative capital structure and lower our
overall cost of capital, while providing additional capital for acquisitions.”

Balance Sheet

As of December 31, 2012, the Company had $466.0 million in consolidated debt
and $200.9 million in unconsolidated, non-recourse, secured debt at
weighted-average interest rates of 4.1 percent and 3.7 percent, respectively.
The Company had $100.0 million outstanding in the form of an unsecured term
loan and complete availability of its $200.0 million senior unsecured
revolving credit facility, which had no outstanding balance. As of December
31, 2012, the Company had $97.9 million of consolidated cash, cash equivalents
and restricted cash and $16.3 million of unconsolidated cash, cash equivalents
and restricted cash. The unconsolidated debt, cash, cash equivalents and
restricted cash amounts represent the Company’s 49 percent pro rata interest
in the Manhattan Collection. The diluted weighted-average number of common
shares and units outstanding for the quarter ended December 31, 2012 was 61.0
million.

On December 31, 2012, as defined in the Company’s credit agreement, the
Company’s fixed charge coverage ratio was 2.1 times and total net debt to
trailing 12-month corporate EBITDA was 4.6 times. The Company’s total debt to
total assets ratio was 32 percent. Excluding its interest in the off-balance
sheet Manhattan Collection, the Company’s fixed charge coverage ratio was 2.2
times, net debt to trailing 12-month corporate EBITDA was 4.0 times and total
debt to total assets ratio was 29 percent.

Subsequent Events

  *On January 29, 2013, the Company acquired the Embassy Suites San Diego Bay
    – Downtown for $112.5 million. The 337-room, full-service, upper upscale
    hotel is located in downtown San Diego, California. This acquisition
    included the assumption of a $66.8 million secured loan, with the balance
    of the purchase price being funded by the Company with available cash.

2013 Outlook

The Company's outlook provided below for 2013 remains unchanged from our 2013
outlook press release dated January 22, 2013. Our outlook, which assumes
continued improvement in economic activity, positive business travel trends
and other significant assumptions, is as follows:

                                                               
                                                    2013 Outlook
                                                    Low             High
                                                    ($ in millions except

                                                    per share and RevPAR data)
Net income                                          $40.8             $44.8
Net income per diluted share                        $0.66             $0.73
                                                                      
Adjusted EBITDA                                     $145.0            $149.0
                                                                      
Adjusted FFO                                        $90.0             $94.0
Adjusted FFO per diluted share                      $1.46             $1.53
                                                                      
This 2013 outlook is based, in part, on the
following estimates and assumptions:
                                                                      
U.S. GDP Growth                                     1.75%             2.25%
U.S. Hotel Industry RevPAR Growth                   4.5%              6.5%
                                                                      
Pro Forma Portfolio RevPAR                          $182.00           $186.00
Pro Forma Portfolio RevPAR Growth                   5.0%              7.0%
                                                                      
                                                                      
Pro Forma Portfolio Hotel EBITDA                    $157.0            $162.0
Pro Forma Portfolio Hotel EBITDA Margin             28.0%             28.5%
Pro Forma Portfolio Hotel EBITDA Margin Growth      75 bps            125 bps
                                                                      
                                                                      
Corporate cash general and administrative           $11.0             $11.5
expenses
Corporate non-cash general and administrative       $3.0              $3.5
expenses
                                                                      
Total capital investments related to
renovations, capital maintenance and return on      $55.0             $65.0
investment projects
                                                                      
Weighted-average fully diluted shares and units     61.6              61.6
                                                                      
The Company’s outlook for the first quarter of
2013 is as follows:
                                                                      
                                                    First Quarter 2013 Outlook
                                                    Low             High
                                                    ($ in millions except

                                                    per share and RevPAR data)
Portfolio RevPAR                                    $156.00           $158.50
Portfolio RevPAR Growth                             6.0%              7.5%
                                                                      
Portfolio Hotel EBITDA                              $22.5             $24.5
Portfolio Hotel EBITDA Margin                       19.9%             20.4%
Portfolio Hotel EBITDA Margin Growth                50 bps            100 bps
                                                                      
Adjusted EBITDA                                     $18.5             $20.5
                                                                      
Adjusted FFO                                        $9.0              $11.0
Adjusted FFO per diluted share                      $0.15             $0.18
                                                                      
Weighted-average fully diluted shares and units     61.6              61.6
                                                                      

The Company’s 2013 and First Quarter Outlooks include the effects of the
Company’s 49 percent pro rata interest in the Manhattan Collection.

The Company’s estimates and assumptions for pro forma portfolio RevPAR, pro
forma portfolio RevPAR growth, pro forma portfolio EBITDA, pro forma portfolio
EBITDA margin and pro forma hotel EBITDA margin growth for 2013 include the
hotels owned as of December 31, 2012, as well as the Embassy Suites San Diego
Bay – Downtown, as if they had been owned by the Company for the entire year
of 2012, except for Hotel Zetta, which the Company expects to include after it
has owned the hotel for one full year, starting in the second quarter of 2013.

Earnings Call

The Company will conduct its quarterly analyst and investor conference call on
Friday, February 22, 2013 at 9:00 AM EST. To participate in the conference
call, please dial (800) 289-0552 approximately ten minutes before the call
begins. Additionally, a live webcast of the conference call will be available
through the Company’s website. To access the webcast, log on to
http://www.pebblebrookhotels.com ten minutes prior to the conference call. A
replay of the conference call webcast will be archived and available online
through the Investor Relations section of http://www.pebblebrookhotels.com.

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 26 hotels, including 20 wholly owned hotels with a total of
4,960 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, across 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.
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, 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 and its share of future markets; forecasts of hotel
industry performance; 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, 2012.
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
www.pebblebrookhotels.com.

All information in this press release is as of February 21, 2013. The Company
undertakes no duty to update the statements in this press release to conform
the 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


Pebblebrook Hotel Trust
Consolidated Balance Sheets
($ in thousands, except per share data)


                                     December 31, 2012   December 31, 2011
                                                                            
ASSETS
Assets:
Investment in hotel properties,        $   1,417,229         $   1,127,484
net
Investment in joint venture                283,011               171,765
Ground lease asset, net                    10,283                10,502
Cash and cash equivalents                  85,900                65,684
Restricted cash                            12,034                9,469
Hotel receivables (net of
allowance for doubtful accounts of         13,463                11,312
$28 and $71, respectively)
Deferred financing costs, net              5,753                 3,487
Prepaid expenses and other assets         18,489              16,929     
Total assets                           $   1,846,162        $   1,416,632  
                                                                            
                                                                            
LIABILITIES AND EQUITY
                                                                            
Liabilities:
Senior unsecured revolving credit      $   -                 $   -
facility
Term loan                                  100,000               -
Mortgage debt (including mortgage
loan premium of $2,498 and $0,             368,508               251,539
respectively)
Accounts payable and accrued               47,364                33,333
expenses
Advance deposits                           4,596                 4,380
Accrued interest                           1,328                 1,000
Distribution payable                      11,274              10,032     
Total liabilities                          533,070               300,284
Commitments and contingencies
Shareholders' equity:
Preferred shares of beneficial
interest, $.01 par value
(liquidation preference of
$225,000 at December 31, 2012 and
December 31, 2011), 100,000,000            90                    90
shares authorized; 9,000,000
shares issued and outstanding at
December 31, 2012 and at December
31, 2011
Common shares of beneficial
interest, $.01 par value,
500,000,000 shares authorized;
60,955,090 issued and outstanding          610                   508
at December 31, 2012 and
50,769,024 issued and outstanding
at December 31, 2011
Additional paid-in capital                 1,362,349             1,142,905
Accumulated other comprehensive            (300       )          -
income (loss)
Distributions in excess of                (49,798    )         (30,252    )
retained earnings
Total shareholders' equity                1,312,951           1,113,251  
Non-controlling interests                 141                 3,097      
Total equity                              1,313,092           1,116,348  
Total liabilities and equity           $   1,846,162        $   1,416,632  
                                                                            


Pebblebrook Hotel Trust
Consolidated Statements of Operations
($ in thousands, except per share data)
                                                                     
                                                                                           
                     Three months ended                    Year ended

                     December 31,                          December 31,
                     2012               2011               2012               2011
                                                                                           
REVENUES:
Hotel operating
revenues:
Room                 $ 64,135           $ 49,882           $ 239,218          $ 177,479
Food and               34,122             29,318             117,752            92,898
beverage
Other operating       6,485            5,209            23,718           17,610     
Total revenues       $ 104,742         $ 84,409          $ 380,688         $ 287,987    
                                                                                           
EXPENSES:
Hotel operating
expenses:
Room                 $ 17,692           $ 13,586           $ 63,213           $ 47,570
Food and               24,533             20,360             86,369             65,783
beverage
Other direct           3,301              2,523              12,236             8,353
Other indirect        27,767           23,061           99,766           79,648     
Total hotel
operating              73,293             59,530             261,584            201,354
expenses
Depreciation and       12,052             9,519              42,794             30,945
amortization
Real estate
taxes, personal
property taxes         4,966              3,954              17,576             12,895
and property
insurance
Ground rent            1,003              464                2,611              1,814
General and            4,481              3,207              16,777             11,460
administrative
Hotel
acquisition           894              16               2,234            3,392      
costs
Total operating        96,689             76,690             343,576            261,860
expenses
Operating income       8,053              7,719              37,112             26,127
Interest income        113                53                 224                868
Interest expense       (4,261     )       (3,576     )       (14,932    )       (13,653    )
Other                  -                  -                  -                  85
Equity in
earnings of           4,334            4,135            5,970            2,336      
joint venture
Income before          8,239              8,331              28,374             15,763
income taxes
Income tax
(expense)             (1,026     )      (225       )      (1,866     )      (564       )
benefit
Net income             7,213              8,106              26,508             15,199
Net income
attributable to       125              144              429              343        
non-controlling
interests
Net income
attributable to        7,088              7,962              26,079             14,856
the Company
Distributions to
preferred             (4,456     )      (4,506     )      (17,825    )      (10,413    )
shareholders
Net income
attributable to      $ 2,632           $ 3,456           $ 8,254           $ 4,443      
common
shareholders
                                                                                           
                                                                                           
Net income per
share available
to common            $ 0.04             $ 0.07             $ 0.14             $ 0.08
shareholders,
basic and
diluted
                                                                                           
Weighted-average
number of common       60,510,386         50,765,629         55,806,543         47,921,200
shares, basic
Weighted-average
number of common       60,619,996         50,781,408         55,955,497         47,966,307
shares, diluted
                                                                                           


Pebblebrook Hotel Trust
Reconciliation of Net Income (Loss) to FFO, EBITDA, Adjusted FFO and Adjusted EBITDA
($ in thousands, except per share data)
(Unaudited)

                                                                     
                     Three months ended                    Year ended

                     December 31,                          December 31,
                     2012               2011               2012               2011
                                                                                           
Net income           $ 7,213            $ 8,106            $ 26,508           $ 15,199
Adjustments:
Depreciation and       12,012             9,482              42,638             30,807
amortization
Depreciation and
amortization          2,523            2,762            9,856            3,931      
from joint
venture
FFO                  $ 21,748          $ 20,350          $ 79,002          $ 49,937     
Distribution to
preferred            $ (4,456     )     $ (4,506     )     $ (17,825    )     $ (10,413    )
shareholders
FFO available to
common share and     $ 17,292          $ 15,844          $ 61,177          $ 39,524     
unit holders
Hotel
acquisition            894                16                 2,234              3,392
costs
Reorganization
costs from joint       -                  176                -                  4,144
venture
Ground lease           55                 55                 219                219
amortization
Amortization of        395                394                1,579              1,579
LTIP units
Management
contract               -                  -                  1,007              -
termination
costs
Interest expense
adjustment for        (99        )      -                (99        )      -          
above market
loan
Adjusted FFO
available to         $ 18,537          $ 16,485          $ 66,117          $ 48,858     
common share and
unit holders
                                                                                           
FFO per common       $ 0.28             $ 0.31             $ 1.09             $ 0.81
share - basic
FFO per common       $ 0.28             $ 0.31             $ 1.09             $ 0.81
share - diluted
Adjusted FFO per
common share -       $ 0.30             $ 0.32             $ 1.18             $ 1.00
basic
Adjusted FFO per
common share -       $ 0.30             $ 0.32             $ 1.17             $ 1.00
diluted
                                                                                           
Weighted-average
number of basic        60,891,495         51,694,728         56,187,652         48,850,299
common shares
and units
Weighted-average
number of fully        61,001,105         51,710,507         56,336,606         48,895,406
diluted common
shares and units
                                                                                           
                                                           
                     Three months ended                    Year ended

                     December 31,                          December 31,
                     2012               2011               2012               2011
                                                                                           
Net income           $ 7,213            $ 8,106            $ 26,508           $ 15,199
Adjustments:
Interest expense       4,261              3,576              14,932             13,653
Interest expense
from joint             3,485              3,316              13,160             5,680
venture
Income tax
expense                1,026              225                1,866              564
(benefit)
Depreciation and       12,052             9,519              42,794             30,945
amortization
Depreciation and
amortization          2,523            2,762            9,856            3,931      
from joint
venture
EBITDA               $ 30,560          $ 27,504          $ 109,116         $ 69,972     
Hotel
acquisition            894                16                 2,234              3,392
costs
Reorganization
costs from joint       -                  176                -                  4,144
venture
Ground lease           55                 55                 219                219
amortization
Amortization of        395                394                1,579              1,579
LTIP units
Management
contract              -                -                1,007            -          
termination
costs
Adjusted EBITDA      $ 31,904          $ 28,145          $ 114,155         $ 79,306     
                                                                                           

To supplement the Company’s consolidated financial statements presented in
accordance with U.S. generally accepted accounting principles ("GAAP"), this
press release includes certain non-GAAP financial measures as defined under
Securities and Exchange Commission (SEC) Rules.

These measures are not in accordance with, or an alternative to, measures
prepared in accordance with GAAP and may be different from similarly titled
non-GAAP measures used by other companies. In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules or
principles. Non-GAAP measures have limitations in that they do not reflect all
of the amounts associated with the Company’s results of operations determined
in accordance with GAAP.

Funds from Operations - Funds from operations (“FFO”) represents net income
(computed in accordance with GAAP), plus real estate-related depreciation and
amortization and after adjustments for unconsolidated partnerships. The
Company considers FFO a useful measure of performance for an equity REIT
because it facilitates an understanding of the operating performance of its
properties without giving effect to real estate depreciation and amortization,
which assume that the value of real estate assets diminishes predictably over
time. Since real estate values have historically risen or fallen with market
conditions, the Company believes that FFO provides a meaningful indication of
its performance. The Company also considers FFO an appropriate performance
measure given its wide use by investors and analysts. The Company computes FFO
in accordance with standards established by the Board of Governors of NAREIT
in its March 1995 White Paper (as amended in November 1999 and April 2002),
which may differ from the methodology for calculating FFO utilized by other
equity REITs and, accordingly, may not be comparable to that of other REITs.
Further, FFO does not represent amounts available for management’s
discretionary use because of needed capital replacement or expansion, debt
service obligations or other commitments and uncertainties, nor is it
indicative of funds available to fund the Company’s cash needs, including its
ability to make distributions. The Company presents FFO per diluted share
calculations that are based on the outstanding dilutive common shares plus the
outstanding Operating Partnership units for the periods presented.

Earnings before Interest, Taxes, and Depreciation and Amortization ("EBITDA")
- The Company believes that EBITDA provides investors a useful financial
measure to evaluate its operating performance, excluding the impact of our
capital structure (primarily interest expense) and our asset base (primarily
depreciation and amortization).

The Company also evaluates its performance by reviewing Adjusted EBITDA and
Adjusted FFO, because it believes that adjusting EBITDA and FFO to exclude
certain recurring and non-recurring items described below provides useful
supplemental information regarding the Company's ongoing operating performance
and that the presentation of Adjusted EBITDA and Adjusted FFO, when combined
with the primary GAAP presentation of net income (loss), more completely
describes the Company's operating performance. The Company adjusts EBITDA and
FFO for the following items, which may occur in any period, and refers to
these measures as Adjusted EBITDA and Adjusted FFO:

  *Ground lease amortization: The Company excludes the non-cash amortization
    expense of the Company's ground lease asset.
  *Hotel acquisition costs: The Company excludes acquisition transaction
    costs expensed during the period because it believes that including these
    costs in EBITDA and FFO does not reflect the underlying financial
    performance of the Company and its hotels.
  *Reorganization costs from joint venture: The Company excludes
    reorganization costs expensed during the period because it believes that
    including these costs in EBITDA and FFO does not reflect the underlying
    financial performance of the Company and its hotels.
  *Amortization of LTIP units: The Company excludes the non-cash amortization
    of LTIP Units expensed during the period.
  *Management contract termination costs: The Company excludes one-time
    management contract termination costs expensed during the period because
    it believes that including these costs in EBITDA and FFO does not reflect
    the underlying financial performance of the Company and its hotels.
  *Interest expense adjustment for above-market loans: The Company excludes
    interest expense adjustment for above-market loans assumed in connection
    with acquisitions, because it believes that including these non-cash
    adjustments in FFO does not reflect the underlying financial performance
    of the Company.

The Company’s presentation of FFO in accordance with the NAREIT White Paper
and EBITDA, and as adjusted by the Company, should not be considered as an
alternative to net income (computed in accordance with GAAP) as an indicator
of the Company’s financial performance or to cash flow from operating
activities (computed in accordance with GAAP) as an indicator of its
liquidity. The table above is a reconciliation of the Company’s FFO and EBITDA
calculations to net income in accordance with GAAP.

                                                           
Pebblebrook Hotel Trust
Manhattan Collection Statements of Operations
(Reflects the Company's 49% ownership interest in the Manhattan Collection)
($ in thousands)
(Unaudited)

                                                                             
                  Three months ended                Year ended

                  December 31,                      December 31,
                  2012              2011            2012            2011
                                                                             
REVENUES:
Hotel
operating
revenues:
Room              $  22,885         $ 22,391        $ 76,161        $ 36,404
Food and             2,033            1,794           6,705           2,629
beverage
Other               651            711           2,617         1,154  
operating
Total               25,569         24,896        85,483        40,187 
revenues
                                                                             
EXPENSES:
Total hotel          15,266           14,544          56,586          24,150
expenses
Depreciation
and                 2,523          2,762         9,856         3,931  
amortization
Total
operating           17,789         17,306        66,442        28,081 
expenses
Operating            7,780            7,590           19,041          12,106
income (loss)
Interest             30               37              129             54
income
Interest             (3,485  )        (3,316  )       (13,160 )       (5,680 )
expense
Other               9              (176    )      (40     )      (4,144 )
Equity in
earnings of       $  4,334         $ 4,135        $ 5,970        $ 2,336  
joint venture
                                                                             
                                                         
                                                                             
DEBT:             Fixed             Loan Amount     Maturity
                  Interest Rate
Mortgage^(1)      3.67%             $ 200,900       January
                                                    2018
Cash and cash                        (9,381  )
equivalents
Net Debt                              191,519
Restricted                           (6,945  )
cash
Net Debt
including                           $ 184,574 
restricted
cash
                                                                             

    
      Does not include the Company's pro rata interest of the $50.0 million
(1)   preferred capital the Company made to the joint venture, in which
      Pebblebrook has a 49% ownership interest.
      


Notes:
These operating results represent the Company's 49% ownership interest in the
Manhattan Collection. The Manhattan Collection consists of the following six
hotels: Affinia Manhattan, Affinia 50, Affinia Dumont, Affinia Shelburne,
Affinia Gardens and The Benjamin. The operating results for the Manhattan
Collection only include 49% of the results for the six properties to reflect
the Company's 49% ownership interest in the hotels.

The information above has not been audited and has been presented only for
informational purposes.



Pebblebrook Hotel Trust
Entire Portfolio - Pro Forma Hotel Statistical Data
(Unaudited)

                                                   
                        Three months ended      Year ended

                        December 31,            December 31,
                        2012        2011        2012        2011
Total Portfolio
Pro forma Occupancy     79.3%       77.7%       81.3%       78.0%
Increase/(Decrease)     2.1%                    4.2%
Pro forma ADR           $224.32     $216.54     $213.83     $206.04
Increase/(Decrease)     3.6%                    3.8%
Pro forma RevPAR        $177.93     $168.24     $173.82     $160.81
Increase/(Decrease)     5.8%                    8.1%
                                                            


Notes:
This schedule of hotel results for the three months ended December 31,
includes information from all of the hotels the Company owned as of December
31, 2012, except for the Hotel Zetta (formerly Hotel Milano) for both 2012 and
2011. Results for the Manhattan Collection reflect Pebblebrook’s 49% ownership
interest. The schedule of hotel results for the full years ended December 31,
includes information from all of the hotels the Company owned as of December
31, 2012, except for the Hotel Vintage Park Seattle and the Hotel Vintage
Plaza Portland for the first and second quarters of both 2012 and 2011; the W
Los Angeles – Westwood and Hotel Palomar San Francisco for the first, second
and third quarters of both 2012 and 2011; and, the Hotel Zetta for all of 2012
and 2011. These hotel results for the respective periods may include
information reflecting operational performance prior to the Company's
ownership of the hotels. The Company expects to include historical hotel
results for the Hotel Zetta after the Company has owned the hotel for one
year. In addition, the information above does not reflect the Company's
corporate general and administrative expense, interest expense, property
acquisition costs, depreciation and amortization, taxes and other expenses.
Any differences are a result of rounding.

The information above has not been audited and has been presented only for
comparison purposes.



Pebblebrook Hotel Trust
Wholly Owned - Pro Forma Hotel Statistical Data
(Unaudited)
                                                   
                                                            
                        Three months ended      Year ended

                        December 31,            December 31,
                        2012        2011        2012        2011
Total Portfolio
Pro forma Occupancy     76.8%       74.9%       79.1%       76.1%
Increase/(Decrease)     2.5%                    4.0%
Pro forma ADR           $203.54     $194.80     $200.73     $192.21
Increase/(Decrease)     4.5%                    4.4%
Pro forma RevPAR        $156.26     $145.90     $158.88     $146.35
Increase/(Decrease)     7.1%                    8.6%
                                                            


Notes:
This schedule of hotel results for the three months ended December 31,
includes information from all of the hotels the Company owned as of December
31, 2012, except for the Hotel Zetta (formerly Hotel Milano) and Pebblebrook’s
49% ownership interest in the Manhattan Collection for both 2012 and 2011. The
schedule of hotel results for the full years ended December 31, includes
information from all of the hotels the Company owned as of December 31, 2012,
except for the Hotel Vintage Park Seattle and the Hotel Vintage Plaza Portland
for the first and second quarters of both 2012 and 2011; the W Los Angeles –
Westwood and Hotel Palomar San Francisco for the first, second and third
quarters of both 2012 and 2011; and, the Hotel Zetta and Pebblebrook’s 49%
ownership interest in the Manhattan Collection for all of 2012 and 2011. These
hotel results for the respective periods may include information reflecting
operational performance prior to the Company's ownership of the hotels. The
Company expects to include historical hotel results for the Hotel Zetta after
the Company has owned the hotel for one year. In addition, the information
above does not reflect the Company's corporate general and administrative
expense, interest expense, property acquisition costs, depreciation and
amortization, taxes and other expenses. Any differences are a result of
rounding.

The information above has not been audited and has been presented only for
comparison purposes.



Pebblebrook Hotel Trust
Manhattan Collection - Pro Forma Hotel Statistical Data
(Unaudited)
                                                
                      Three months ended   Year ended
                      December 31,         December 31,
                      2012       2011      2012      2011
Total Portfolio
Pro forma Occupancy   92.8%      92.5%     91.5%     87.5%
Increase/(Decrease)   0.3%                 4.6%
Pro forma ADR         $315.52    $309.95   $267.81   $265.88
Increase/(Decrease)   1.8%                 0.7%
Pro forma RevPAR      $292.94    $286.77   $245.05   $232.66
Increase/(Decrease)   2.2%                 5.3%


Notes:
This schedule of hotel results for the three months and full years ended
December 31, includes only information for the six hotels that comprise the
Manhattan Collection as of December 31, 2012. These hotel results for the
respective periods may include information reflecting operational performance
prior to the Company's ownership of the hotels. Any differences are a result
of rounding.

The information above has not been audited and has been presented only for
comparison purposes.



Pebblebrook Hotel Trust
Hotel Operational Data
Entire Portfolio - Schedule of Pro Forma Hotel Results
($ in thousands, except per room data)
(Unaudited)
                                                              
                         Three months ended          Year ended
                         December 31,                December 31,
                         2012          2011          2012          2011
                                                                   
Pro Forma Hotel
Revenues:
Rooms                    $ 87,678      $ 82,888      $ 311,510     $ 285,677
Food and beverage          36,445        36,562        124,041       123,946
Other                     7,103       7,031       25,805      24,814  
Total hotel revenues      131,226     126,481     461,356     434,437 
                                                                   
Pro Forma Hotel
Expenses:
Rooms                    $ 23,622      $ 22,436      $ 84,030      $ 79,304
Food and beverage          26,642        26,344        92,723        90,936
Other direct               3,392         3,028         12,458        11,265
General and                11,574        11,467        40,222        41,034
administrative
Sales and marketing        8,982         8,435         32,291        30,292
Management fees            4,260         3,730         13,981        13,046
Property operations        4,175         4,216         14,889        15,025
and maintenance
Energy and utilities       3,369         3,659         12,820        14,488
Property taxes             5,720         5,299         20,394        18,117
Other fixed expenses      3,451       3,657       10,942      13,131  
Total hotel expenses      95,187      92,271      334,750     326,638 
                                                                
Pro Forma Hotel EBITDA   $ 36,039     $ 34,210     $ 126,606    $ 107,799 
                                                                   
Pro Forma Hotel EBITDA     27.5    %     27.0    %     27.4    %     24.8    %
Margin
                                                                   
Pro Forma Hotel EBITDA   $ 6,728       $ 6,388       $ 25,856      $ 22,148
Per Room



Notes:
This schedule of hotel results for the three months ended December 31,
includes information from all of the hotels the Company owned as of December
31, 2012, except for the Hotel Zetta (formerly Hotel Milano) for both 2012 and
2011. Results for the Manhattan Collection reflect Pebblebrook’s 49% ownership
interest. The schedule of hotel results for the full years ended December 31,
includes information from all of the hotels the Company owned as of December
31, 2012, except for the Hotel Vintage Park Seattle and the Hotel Vintage
Plaza Portland for the first and second quarters of both 2012 and 2011; the W
Los Angeles – Westwood and Hotel Palomar San Francisco for the first, second
and third quarters of both 2012 and 2011; and, the Hotel Zetta for all of 2012
and 2011. These hotel results for the respective periods may include
information reflecting operational performance prior to the Company's
ownership of the hotels. The Company expects to include historical hotel
results for the Hotel Zetta after the Company has owned the hotel for one
year. In addition, the information above does not reflect the Company's
corporate general and administrative expense, interest expense, property
acquisition costs, depreciation and amortization, taxes and other expenses.
Any differences are a result of rounding.

The information above has not been audited and has been presented only for
comparison purposes.



Pebblebrook Hotel Trust
Hotel Operational Data
Wholly Owned - Schedule of Pro Forma Hotel Results
($ in thousands, except per room data)
(Unaudited)
                                                              
                         Three months ended          Year ended
                         December 31,                December 31,
                         2012          2011          2012          2011
                                                                   
Pro Forma Hotel
Revenues:
Rooms                    $ 64,793      $ 60,484      $ 235,350     $ 216,459
Food and beverage          34,412        34,768        117,336       118,439
Other                     6,452       6,148       23,188      21,969  
Total hotel revenues      105,657     101,400     375,874     356,867 
                                                                   
Pro Forma Hotel
Expenses:
Rooms                    $ 17,772      $ 16,751      $ 61,876      $ 58,680
Food and beverage          24,836        24,734        86,439        85,333
Other direct               3,291         2,924         12,022        10,824
General and                9,512         9,468         32,808        33,694
administrative
Sales and marketing        7,636         7,189         27,393        25,665
Management fees            3,486         2,951         11,323        10,642
Property operations        3,409         3,475         11,987        12,171
and maintenance
Energy and utilities       2,709         3,077         10,149        11,949
Property taxes             3,925         3,628         13,628        11,771
Other fixed expenses      3,345       3,533       10,539      12,358  
Total hotel expenses      79,921      77,730      278,164     273,087 
                                                                
Pro Forma Hotel EBITDA   $ 25,736     $ 23,670     $ 97,710     $ 83,780  
                                                                   
Pro Forma Hotel EBITDA     24.4    %     23.3    %     26.0    %     23.5    %
Margin
                                                                   
Pro Forma Hotel EBITDA   $ 5,710       $ 5,253       $ 24,142      $ 20,676
Per Room



Notes:
This schedule of hotel results for the three months ended December 31,
includes information from all of the hotels the Company owned as of December
31, 2012, except for the Hotel Zetta (formerly Hotel Milano) and Pebblebrook’s
49% ownership interest in the Manhattan Collection for both 2012 and 2011. The
schedule of hotel results for the full years ended December 31, includes
information from all of the hotels the Company owned as of December 31, 2012,
except for the Hotel Vintage Park Seattle and the Hotel Vintage Plaza Portland
for the first and second quarters of both 2012 and 2011; the W Los Angeles –
Westwood and Hotel Palomar San Francisco for the first, second and third
quarters of both 2012 and 2011; and, the Hotel Zetta and Pebblebrook’s 49%
ownership interest in the Manhattan Collection for all of 2012 and 2011. These
hotel results for the respective periods may include information reflecting
operational performance prior to the Company's ownership of the hotels. The
Company expects to include historical hotel results for the Hotel Zetta after
the Company has owned the hotel for one year. In addition, the information
above does not reflect the Company's corporate general and administrative
expense, interest expense, property acquisition costs, depreciation and
amortization, taxes and other expenses. Any differences are a result of
rounding.

The information above has not been audited and has been presented only for
comparison purposes.


                           
Pebblebrook Hotel Trust
Hotel Operational Data
Manhattan Collection - Schedule of Pro Forma Hotel Results
($ in thousands, except per room data)
(Unaudited)
                                                                
                             Three months ended        Year ended
                             December 31,              December 31,
                             2012         2011         2012         2011
                                                                    
Pro Forma Hotel Revenues:
Rooms                        $ 22,885     $ 22,404     $ 76,161     $ 69,217
Food and beverage              2,033        1,794        6,705        5,507
Other                         651        883        2,617      2,846  
Total hotel revenues          25,569     25,081     85,483     77,570 
                                                                    
Pro Forma Hotel Expenses:
Rooms                        $ 5,850      $ 5,685      $ 22,154     $ 20,624
Food and beverage              1,805        1,610        6,285        5,604
Other direct                   102          106          436          437
General and administrative     2,062        1,999        7,414        7,340
Sales and marketing            1,346        1,246        4,898        4,628
Management fees                774          779          2,658        2,404
Property operations and        766          740          2,901        2,854
maintenance
Energy and utilities           660          581          2,671        2,539
Property taxes                 1,794        1,671        6,766        6,346
Other fixed expenses          107        124        403        774    
Total hotel expenses          15,266     14,541     56,586     53,550 
                                                                 
Pro Forma Hotel EBITDA       $ 10,303    $ 10,540    $ 28,897    $ 24,020 
                                                                    
Pro Forma Hotel EBITDA         40.3   %     42.0   %     33.8   %     31.0   %
Margin
                                                                    
Pro Forma Hotel EBITDA Per   $ 12,133     $ 12,412     $ 34,029     $ 29,469
Room



Notes:
This schedule of hotel results for the three months and full years ended
December 31, reflects only the Company's 49% pro rata interest in the six
hotels that comprise the Manhattan Collection as of December 31, 2012. These
hotel results may reflect the operational performance prior to the Company's
ownership interest in the hotels. In addition, the information above does not
reflect the Company's corporate general and administrative expense, interest
expense, property acquisition costs, depreciation and amortization, taxes and
other expenses. Any differences are a result of rounding.

The information above has not been audited and has been presented only for
comparison purposes.



Pebblebrook Hotel Trust
Pro Forma Property Inclusion Reference Table
                                                
Hotels                                Q1   Q2   Q3   Q4

DoubleTree by Hilton Bethesda         X    X    X    X
Sir Francis Drake                     X    X    X    X
InterContinental Buckhead             X    X    X    X
Hotel Monaco Washington, DC           X    X    X    X
Grand Hotel Minneapolis               X    X    X    X
Skamania Lodge                        X    X    X    X
Sheraton Delfina Santa Monica         X    X    X    X
Sofitel Philadelphia                  X    X    X    X
Argonaut Hotel                        X    X    X    X
Hotel Monaco Seattle                  X    X    X    X
Westin Gaslamp Quarter San Diego      X    X    X    X
Mondrian Los Angeles                  X    X    X    X
Viceroy Miami                         X    X    X    X
W Boston                              X    X    X    X
Manhattan Collection                  X    X    X    X
Hotel Zetta (formerly Hotel Milano)
Hotel Vintage Park Seattle                      X    X
Hotel Vintage Plaza Portland                    X    X
W Los Angeles - Westwood                             X
Hotel Palomar San Francisco                          X
Embassy Suites San Diego Bay

Notes:
A property marked with an "X" in a specific quarter denotes that the pro forma
operating results of that property are included in the Pro Forma Hotel
Statistical Data and in the Schedule of Pro Forma Hotel Results.

The Company’s fourth quarter Pro forma RevPAR, RevPAR Growth, ADR, Occupancy,
Hotel Revenues, Hotel Expenses, Hotel EBITDA and Hotel EBITDA Margin include
all of the hotels the Company owned as of December 31, 2012, except for the
Hotel Zetta (formerly Hotel Milano) for both 2012 and 2011. Results for the
Manhattan Collection reflect Pebblebrook's 49% ownership interest.

The Company’s full year Pro forma RevPAR, RevPAR Growth, ADR, Occupancy, Hotel
Revenues, Hotel Expenses, Hotel EBITDA and Hotel EBITDA Margin include all of
the hotels the Company owned as of December 31, 2012, except for the Hotel
Vintage Park Seattle and the Hotel Vintage Plaza Portland for the first and
second quarters of both 2012 and 2011; the W Los Angeles – Westwood and Hotel
Palomar San Francisco for the first, second and third quarters of both 2012
and 2011; and, the Hotel Zetta for all of 2012 and 2011. Results for the
Manhattan Collection reflect the Company's 49% ownership interest. The Company
expects to include historical operating results for the Hotel Zetta after the
Company has owned the hotel for one year. Operating statistics and financial
results include periods prior to the Company’s ownership of the hotels.

The Company's estimates and assumptions for Pro forma RevPAR, RevPAR Growth,
ADR, Occupancy, Hotel Revenues, Hotel Expenses, Hotel EBITDA and Hotel EBITDA
Margin for the Company's 2013 Outlook include the hotels owned as of February
21, 2013, except for Hotel Zetta for the first quarter. These operating
statistics and financial results may include periods prior to the Company’s
ownership of the hotels. The hotel operating estimates and assumptions for the
Manhattan Collection included in the Company's 2013 Outlook only reflect the
Company's 49% ownership interest in the hotels.



Pebblebrook Hotel Trust
Entire Portfolio - Historical Hotel Pro Forma Operating Data
($ in thousands, except ADR and RevPAR)
(Unaudited)
                                                                 
                                                                       
Historical Operating
Data:
                           First      Second     Third      Fourth     Full
                           Quarter    Quarter    Quarter    Quarter    Year
                           2011       2011       2011       2011       2011
                                                                       
Pro forma Occupancy        72%        81%        85%        78%        79%
Pro forma ADR              $189       $206       $210       $214       $205
Pro forma RevPAR           $136       $166       $179       $167       $162
                                                                       
Pro forma Hotel Revenues   $107.9     $128.4     $133.9     $131.8     $502.1
Pro forma Hotel EBITDA     $18.0      $33.4      $37.9      $35.8      $125.1
                                                                       
                           First      Second     Third      Fourth     Full
                           Quarter    Quarter    Quarter    Quarter    Year
                           2012       2012       2012       2012       2012
                                                                       
Pro forma Occupancy        75%        85%        87%        79%        82%
Pro forma ADR              $195       $218       $219       $222       $214
Pro forma RevPAR           $147       $186       $190       $176       $175
                                                                       
Pro forma Hotel Revenues   $115.5     $139.7     $140.7     $136.8     $532.7
Pro forma Hotel EBITDA     $22.4      $42.2      $43.5      $38.0      $146.2

Notes:
These historical hotel operating results include information for all of the
hotels the Company owned as of February 21, 2013, except for the operating
results of Hotel Zetta (formerly Hotel Milano). The hotel operating results
for the Manhattan Collection only includes 49% of the results for the 6
properties to reflect the Company's 49% ownership interest in the hotels.
These historical operating results include periods prior to the Company's
ownership of the hotels. The Company expects to include historical operating
results for Hotel Zetta after the Company has owned the hotel for one year.
The information above does not reflect the Company's corporate general and
administrative expense, interest expense, property acquisition costs,
depreciation and amortization, taxes and other expenses. Any differences are a
result of rounding.

The information above has not been audited and has been presented only for
comparison purposes.



Pebblebrook Hotel Trust
Wholly Owned - Historical Hotel Pro Forma Operating Data
($ in thousands, except ADR and RevPAR)
(Unaudited)
                                                                 
                                                                       
Historical Operating
Data:
                           First      Second     Third      Fourth     Full
                           Quarter    Quarter    Quarter    Quarter    Year
                           2011       2011       2011       2011       2011
                                                                       
Pro forma Occupancy        70%        80%        84%        75%        77%
Pro forma ADR              $188       $195       $198       $193       $194
Pro forma RevPAR           $132       $156       $167       $146       $150
                                                                       
Pro forma Hotel Revenues   $94.6      $109.7     $113.4     $106.8     $424.5
Pro forma Hotel EBITDA     $17.0      $27.7      $31.1      $25.2      $101.1
                                                                       
                           First      Second     Third      Fourth     Full
                           Quarter    Quarter    Quarter    Quarter    Year
                           2012       2012       2012       2012       2012
                                                                       
Pro forma Occupancy        73%        84%        86%        77%        80%
Pro forma ADR              $194       $206       $210       $202       $203
Pro forma RevPAR           $143       $173       $180       $156       $163
                                                                       
Pro forma Hotel Revenues   $99.7      $117.0     $119.2     $111.2     $447.2
Pro forma Hotel EBITDA     $20.3      $33.6      $35.7      $27.7      $117.3

Notes:
These historical hotel operating results include information for all of the
hotels the Company owned as of February 21, 2013, except for the operating
results of Hotel Zetta (formerly Hotel Milano) and Pebblebrook's 49% interest
in the 6 hotel Manhattan Collection. These historical operating results
include periods prior to the Company's ownership of the hotels. The Company
expects to include historical operating results for Hotel Zetta after the
Company has owned the hotel for one year. The information above does not
reflect the Company's corporate general and administrative expense, interest
expense, property acquisition costs, depreciation and amortization, taxes and
other expenses. Any differences are a result of rounding.

The information above has not been audited and has been presented only for
comparison purposes.



Pebblebrook Hotel Trust
Manhattan Collection - Historical Hotel Pro Forma Operating Data
($ in thousands, except ADR and RevPAR)
(Unaudited)
                                                                  
                                                                        
Historical Operating
Data:
                            First      Second     Third      Fourth     Full
                            Quarter    Quarter    Quarter    Quarter    Year
                            2011       2011       2011       2011       2011
                                                                        
Pro forma Occupancy         82%        85%        91%        93%        88%
Pro forma ADR               $193       $270       $278       $310       $266
Pro forma RevPAR            $158       $228       $253       $287       $233
                                                                        
Pro forma Hotel Revenues    $13.3      $18.7      $20.5      $25.1      $77.6
Pro forma Hotel EBITDA      $1.0       $5.7       $6.8       $10.5      $24.0
                                                                        
                            First      Second     Third      Fourth     Full
                            Quarter    Quarter    Quarter    Quarter    Year
                            2012       2012       2012       2012       2012
                                                                        
Pro forma Occupancy         87%        93%        93%        93%        91%
Pro forma ADR               $201       $282       $268       $316       $268
Pro forma RevPAR            $175       $263       $249       $293       $245
                                                                        
Pro forma Hotel Revenues    $15.8      $22.7      $21.5      $25.6      $85.5
Pro forma Hotel EBITDA      $2.1       $8.6       $7.8       $10.3      $28.9

Notes:
These historical hotel operating results include only information from the 6
hotel properties in the Manhattan Collection. The hotel operating results for
the Manhattan Collection only include 49% of the results for the 6 properties
to reflect the Company's 49% ownership interest in the hotels. These
historical operating results include periods prior to the Company's ownership
of the hotels. The information above does not reflect the Company's corporate
general and administrative expense, interest expense, property acquisition
costs, depreciation and amortization, taxes and other expenses. Any
differences are a result of rounding.

The information above has not been audited and has been presented only for
comparison purposes.



Pebblebrook Hotel Trust
Historical Hotel Pro Forma EBITDA by Property
($ in thousands)
(Unaudited)
                                                            
                                              Year ended
                                              December 31,
Hotel                                         2012     2011     2010
                                                                
DoubleTree by Hilton Bethesda-Washington DC   $5.1     $4.7     $4.7
Sir Francis Drake                             8.4      5.0      3.4
InterContinental Buckhead                     11.6     9.6      8.3
Hotel Monaco Washington, DC                   7.6      6.9      5.5
The Grand Hotel Minneapolis                   3.4      2.4      1.5
Skamania Lodge                                5.2      4.8      4.4
Sheraton Delfina                              6.9      6.8      5.3
Sofitel Philadelphia                          6.7      6.0      4.3
Argonaut Hotel                                8.5      6.5      5.2
Westin Gaslamp Quarter San Diego              9.7      8.2      8.4
Hotel Monaco Seattle                          3.4      2.9      2.2
Mondrian Los Angeles                          7.4      8.9      7.9
Viceroy Miami                                 2.8      1.8      (0.7)
W Boston                                      5.8      4.4      3.8
Manhattan Collection                          28.9     24.0     21.9
Hotel Zetta (formerly Hotel Milano)           N/A      N/A      N/A
Vintage Park Hotel Seattle                    2.4      2.2      1.8
Vintage Plaza Hotel Portland                  1.8      1.9      1.3
W Los Angeles - Westwood                      8.0      6.9      5.6
Hotel Palomar San Francisco                   3.8      3.0      1.3
Embassy Suites San Diego Bay                  8.8      8.2      7.6
Total Hotel EBITDA                            $146.2   $125.1   $103.7

Notes:
These historical Pro Forma Hotel EBITDA results include information for all of
the hotels the company owned as of February 21, 2013, except for Hotel Zetta
(formerly Hotel Milano); the Company expects to include historical operating
results for Hotel Zetta after the Company has owned the hotel for one year.
The Hotel EBITDA results for the Manhattan Collection include 49% of the
actual results for the 6 properties to reflect the Company's 49% ownership
interest in these hotels. These historical operating results include periods
prior to the Company's ownership of the hotels. The information above does not
reflect the Company's corporate general and administrative expense, interest
expense, property acquisition costs, depreciation and amortization, taxes and
other expenses.

The information above has not been audited and has been presented only for
comparison purposes.

Contact:

Pebblebrook Hotel Trust
Raymond D. Martz, 240-507-1300
Chief Financial Officer
 
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