Company: PEB
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001474098-25-000138
Chunk: 29

Company: Pebblebrook Hotel Trust
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 29
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 a nonrefundable deposit pursuant to the agreement. This hotel was classified as held for sale and, as a result, the Company classified all of the assets and liabilities related to this hotel as assets and liabilities held for sale in the accompanying consolidated balance sheets and ceased depreciating its assets. The Company expects to complete the sale in the fourth quarter of 2025. However, no assurances can be given that the sale will be completed on these terms or at all.

Note 4. Investment in Hotel Properties

Investment in hotel properties as of September 30, 2025 and December 31, 2024 consisted of the following (in thousands):September 30, 2025December 31, 2024Land$763,764 $800,143 Buildings and improvements5,018,027 5,062,727 Furniture, fixtures and equipment528,503 539,616 Finance lease asset91,181 91,181 Construction in progress5,865 5,066 $6,407,340 $6,498,733 Operating lease, right-of-use asset356,322 351,150 Investment in hotel properties$6,763,662 $6,849,883 Less: Accumulated depreciation(1,660,213)(1,530,854)Investment in hotel properties, net$5,103,449 $5,319,029 Hurricane Helene and Hurricane MiltonOn September 26, 2024, LaPlaya Beach Resort & Club ("LaPlaya") in Naples, FL was impacted by Hurricane Helene and, on October 9, 2024, was also impacted by Hurricane Milton. The damage primarily impacted the ground floor of the Beach House, the pool complex and landscaping. LaPlaya closed following Hurricane Milton to undertake clean-up, repairs and a full assessment of damages. The resort is substantially open.The Company’s insurance policies provide coverage for property damage, business interruption and other costs that are incurred relating to damages sustained in excess of the applicable deductibles. For damage due to Hurricane Helene, the Company recognized a loss of $1.9 million during the nine months ended September 30, 2024, which is included in impairment on the Company’s accompanying consolidated statement of operations and comprehensive income. In September 2025, the Company finalized a settlement agreement for its Hurricane Helene claim with its insurance providers totaling $9.0 million. For damage due to Hurricane