Company: PEB
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001474098-25-000138
Chunk: 39

Company: Pebblebrook Hotel Trust
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 39
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 hotel's performance is below a certain threshold. Once triggered, all of the cash flow generated by the hotel is deposited directly into lockbox accounts and then swept into cash management accounts for the benefit of the lender. These properties are not in a cash trap and no event of default has occurred under the loan documents.

16

Interest ExpenseThe components of the Company's interest expense consisted of the following for the three and nine months ended September 30, 2025 and 2024 (in thousands):For the three months ended September 30,For the nine months ended September 30,2025202420252024Unsecured revolving credit facilities$508 $504 $1,507 $1,499 Unsecured term loans11,010 18,239 32,937 56,366 Convertible senior notes3,282 3,281 9,845 9,844 Unsecured senior notes6,404 30 19,001 89 Mortgage loans3,219 3,247 9,573 9,690 Amortization of debt (premiums) and deferred financing fees, and (gain) loss on debt extinguishment(5,204)1,541 (1,383)6,149 Other961 1,083 3,115 (1,352)Total interest expense$20,180 $27,925 $74,595 $82,285 Fair ValueThe Company estimates the fair value of its fixed rate mortgage loans and unsecured senior notes by discounting the future cash flows of each instrument at estimated market rates, taking into consideration general market conditions and maturity of the debt with similar credit terms, and is classified within Level 2 of the fair value hierarchy. The Company estimates the fair value of its fixed rate convertible senior notes using public market prices and is classified within Level 1 of the fair value hierarchy. The estimated fair value of the Company’s fixed rate debt (unsecured senior notes, convertible senior notes and the Estancia mortgage loan) as of September 30, 2025 and December 31, 2024 was $1.2 billion and $1.1 billion, respectively. The fair value of the Company's variable rate debt approximates its carrying value.

Derivative and Hedging ActivitiesThe Company enters into interest rate swap agreements to hedge against interest rate fluctuations. All of the Company's interest rate swaps are designated as cash flow hedges. All unrealized