Company: PEB
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001474098-25-000119
Chunk: 47

Company: Pebblebrook Hotel Trust
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 47
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 price index and may be subject to minimum and maximum increases. Some leases also contain certain restrictions on modifications that can be made to the hotel structures due to their status as national historic landmarks.

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The Company records expense on a straight-line basis for leases that provide for minimum rental payments that increase in pre-established amounts over the remaining terms of the leases. Ground rent expense is included in real estate taxes, personal property taxes, property insurance and ground rent in the Company's accompanying consolidated statements of operations and comprehensive income. The components of ground rent expense for the three and six months ended June 30, 2025 and 2024 are as follows (in thousands):For the three months ended June 30,For the six months ended June 30,2025202420252024Fixed ground rent $4,825 $4,796 $9,635 $9,592 Variable ground rent5,128 5,057 9,314 9,063 Total ground rent$9,953 $9,853 $18,949 $18,655 LitigationThe nature of the operations of hotels exposes the Company's hotels, the Company and the Operating Partnership to the risk of claims and litigation in the normal course of their business. The Company has insurance to cover certain potential material losses. The Company is not presently subject to any material litigation nor, to the Company’s knowledge, is any material litigation threatened against the Company.

Note 12. Supplemental Information to Statements of Cash Flows (in thousands)

 For the six months ended June 30, 20252024Interest paid, net of capitalized interest$51,068 $53,709 Interest capitalized$— $4,708 Income taxes paid (refunded)$779 $370 Non-Cash Investing and Financing Activities:Distributions payable on common shares/units$1,255 $1,256 Distributions payable on preferred shares/units$10,601 $10,601 Issuance of common shares for Board of Trustees compensation$745 $745 Accrued additions and improvements to hotel properties$455 $6,126 Write-off of fully amortized deferred financing costs$— $682 Write-down of investment$2,662 $— 

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Note 13. Operating Segment Information

The following table presents the Company's segment hotel revenues, Hotel EBITDA, including significant hotel expenses and its reconciliation to net income (loss) for the