Company: PEB
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001474098-25-000138
Chunk: 7

Company: Pebblebrook Hotel Trust
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 7
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DA do not represent cash generated from operating activities as determined by U.S. GAAP and should not be considered as alternatives to U.S. GAAP net income (loss), as indications of our financial performance, or to U.S. GAAP cash flow from operating activities, as measures of liquidity. In addition, FFO, Adjusted FFO, EBITDA, EBITDAre, Adjusted EBITDAre and Hotel EBITDA are not indicative of funds available to fund cash needs, including the ability to make cash distributions.

Results of Operations

At September 30, 2025 and 2024, our consolidated financial statements included the operations of 46 hotel properties, which have been included in our results of operations during the respective periods since their dates of acquisition or through their dates of disposition. Based on when a property was acquired or disposed of, operating results for certain properties are not comparable for the three and nine months ended September 30, 2025 and 2024. As there were no properties acquired or disposed in 2025 or 2024, there were no "non-comparable properties" for the periods indicated.

Comparison of the three months ended September 30, 2025 to the three months ended September 30, 2024

Revenues — Total revenues decreased by $5.8 million primarily due to demand decreases at Paradise Point Resort & Spa, W Los Angeles - West Beverly Hills, Hotel Monaco Washington DC, The Westin San Diego Gaslamp Quarter and George Hotel. This decrease was partially offset by demand increases at 1 Hotel San Francisco and Newport Harbor Island Resort. 

Hotel operating expenses — Total hotel operating expenses increased by $2.0 million primarily due to increased operations at Newport Harbor Island Resort and an increase in wages and benefits at many of our properties. 

Impairment — We recognized an impairment loss of $46.5 million in 2025 related to three hotels. We recognized an impairment loss of $1.9 million in 2024 due to damage caused by Hurricane Helene at LaPlaya Beach Resort & Club.

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Business interruption insurance income and gain on insurance settlement — We recognized business interruption insurance income and gain on insurance settlement in 2025 and 2024 related to the settlement or partial settlements of property damage, business interruption and other costs sustained at LaPlaya Beach Resort & Club resulting from Hurricane Helene and Hurricane Milton in 2025 and Hurricane Ian in 2024. 

Other operating expenses — Other operating expenses increased by $