Company: PEB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001474098-25-000039
Chunk: 58

Company: Pebblebrook Hotel Trust
Filing Date: 2025-02-26
Form: 10-K
Item: Item 15
Chunk 58
---
 or the manager’s failure to meet performance thresholds as defined in the management agreement.The management agreements require the payment of a base management fee generally between 1% and 4% of hotel revenues. Under certain management agreements, the management companies are also eligible to receive an incentive management fee if hotel operating income, cash flows or other performance measures, as defined in the agreements, exceed certain performance thresholds. The incentive management fee is generally calculated as a percentage of hotel operating income after the Company has received a priority return on its investment in the hotel. For the years ended December 31, 2024, 2023 and 2022, combined base and incentive management fees were $40.8 million, $39.3 million and $39.6 million, respectively. Base and incentive management fees are included in other direct and indirect expenses in the Company's accompanying consolidated statements of operations and comprehensive income.Reserve FundsCertain of the Company’s agreements with its hotel managers, franchisors, ground lessors and lenders have provisions for the Company to provide funds, typically 4.0% of hotel revenues, sufficient to cover the cost of (a) certain non-routine repairs and maintenance to the hotels and (b) replacements and renewals to the hotels’ furniture, fixtures and equipment.Restricted CashAt December 31, 2024 and 2023, the Company had $10.9 million and $9.9 million, respectively, in restricted cash, which consisted of funds held in cash management accounts held by a lender, reserves for replacement of furniture and fixtures, and reserves to pay for real estate taxes, ground rent or property insurance under certain hotel management agreements or loan agreements.

F-31

Table of Contents

Hotel, Ground and Finance LeasesAt December 31, 2024, the following hotels were subject to leases as follows:Lease PropertiesLease TypeLease Expiration DateRestaurant at Southernmost Beach ResortOperating leaseApril 2029Paradise Point Resort & SpaOperating leaseMay 2050Harbor Court Hotel San FranciscoFinance leaseAugust 2052Hotel Monaco Washington DCOperating leaseNovember 2059Argonaut HotelOperating leaseDecember 2059Hotel Zephyr Fisherman's Wharf and RetailOperating leaseFebruary 2062Viceroy Santa Monica HotelOperating leaseSeptember 2065Estancia La Jolla Hotel & SpaOperating leaseJanuary 2066San Diego Mission Bay ResortOperating leaseJuly 20681 Hotel San FranciscoOperating leaseMarch 2070(1)Hy