Company: PEB
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001474098-25-000119
Chunk: 54

Company: Pebblebrook Hotel Trust
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 54
---
 depreciation and amortization. We calculate EBITDAre in accordance with standards established by Nareit. EBITDAre is defined as EBITDA as adjusted for gain on sale of hotel properties and impairment loss. Adjusted EBITDAre is defined as EBITDAre, as adjusted for transaction costs, non-cash ground rent on operating and capital leases, management/franchise contract transition costs, non-cash amortization of acquired intangibles, gain on insurance settlement, amortization of share-based compensation expense and hurricane-related costs. Hotel EBITDA is defined as Adjusted EBITDAre plus corporate general and administrative expenses less interest income, business interruption insurance income and other. We believe that EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA provide investors useful financial measures to evaluate our operating performance, excluding the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization).

26

The following table reconciles net income (loss) to EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA for the three and six months ended June 30, 2025 and 2024 (in thousands):

 For the three months ended June 30,For the six months ended June 30, 2025202420252024Net income (loss)$19,285 $32,239 $(12,895)$4,719 Adjustments:Interest expense27,282 27,939 54,415 54,360 Income tax expense (benefit)7,812 1,010 4,650 1,056 Depreciation and amortization57,645 57,296 115,188 114,505 EBITDA and EBITDAre$112,024 $118,484 $161,358 $174,640 Transaction costs55 40 57 44 Non-cash ground rent on operating and capital leases1,823 1,872 3,662 3,745 Management/franchise contract transition costs— — 5 44 Non-cash amortization of acquired intangibles(465)(481)(937)(963)Amortization of share-based compensation expense3,522 3,523 6,741 6,583 Hurricane-related costs— 33 — 183 Unrealized loss on investment— —