Company: PEB
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001474098-25-000070
Chunk: 21

Company: Pebblebrook Hotel Trust
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 21
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 based on an expectation of future interest rates derived from observable market interest rate curves (Overnight Index Swap curves) and volatilities (Level 2 inputs). Derivatives expose the Company to credit risk in the event of non-performance by the counterparties under the terms of the interest rate hedge agreements. The Company incorporates these counterparty credit risks in its fair value measurements. The Company believes it minimizes the credit risk by transacting with major creditworthy financial institutions. 

As of March 31, 2025 and December 31, 2024, the Company's interest rate swap assets had an aggregate fair value of $11.0 million and $16.6 million, respectively. None of the Company's interest rate swaps was in a liability position as of March 31, 2025 or December 31, 2024. Interest rate swap assets are included in prepaid expenses and other assets and interest rate swap liabilities are included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated balance sheets. The Company expects approximately $10.3 million will be reclassified from accumulated other comprehensive income (loss) to interest expense within the next 12 months. 

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Note 6. Revenue

The Company presents revenue on a disaggregated basis in the accompanying consolidated statements of operations and comprehensive income. The following table presents revenues by geographic location for the three months ended March 31, 2025 and 2024 (in thousands): For the three months ended March 31,20252024Southern Florida/Georgia$85,455 $80,957 San Diego, CA75,211 71,495 Boston, MA46,773 45,920 Los Angeles, CA34,297 44,209 San Francisco, CA33,741 30,545 Washington, D.C.15,000 14,802 Portland, OR12,797 12,999 Chicago, IL8,873 8,348 Other(1)8,119 4,794 Total Revenues$320,266 $314,069 ______________________(1)     Other includes: Newport, RI and Santa Cruz, CA.Payments from customers are primarily made when services are provided. Due to the short-term nature of the Company's contracts and the almost simultaneous receipt of payment, almost all of the contract liability balance at the beginning of the period is expected to be recognized as revenue over the following 12 months.

Note 7. Equity