Company: PEB
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001474098-25-000138
Chunk: 2

Company: Pebblebrook Hotel Trust
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 2
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 and ongoing softness in group attendance.  Newport Harbor Island Resort, Jekyll Island Club Resort and Estancia La Jolla Hotel & Spa each delivered solid gains as they continue to capture market share and expand profitability. We remain cautious given the broader economic backdrop and evolving trade and policy risks. We will remain disciplined and adaptable amid an uncertain macro environment, including the recent federal government shutdown, which we expect will temporarily soften travel demand. 

During the nine months ended September 30, 2025, we had the following transactions and events:

•We issued $400.0 million of our 1.625% Convertible Senior Notes due January 2030 and used net proceeds and cash on hand to repurchase $400.0 million of 1.75% Convertible Senior Notes due December 2026 at a discount, for $392.0 million, which resulted in a gain on debt extinguishment of $7.4 million.

•We repurchased 5,623,656 common shares for an aggregate purchase price of $64.3 million, or an average of $11.44 per share, under our common share repurchase program.

•We repurchased 57,843 preferred shares for an aggregate purchase price of $1.1 million, or an average of approximately $18.38 per share, under our preferred share repurchase program.

•We finalized a settlement agreement for our Hurricane Helene insurance claim. We continue to work with our insurance providers on our remaining claim for Hurricane Milton.

While we do not operate our hotel properties, both our asset management team and our executive management team monitor and work cooperatively with our hotel managers by advising and making recommendations in all aspects of our hotels’ operations, including property positioning and repositioning, revenue and expense management, operations analysis, physical design, renovation and capital improvements, guest experience and overall strategic direction. Through these efforts, we seek to improve property efficiencies, lower costs, maximize revenues and enhance property operating margins, which we expect will enhance returns to our shareholders.

Key Indicators of Financial Condition and Operating Performance

We measure hotel results of operations and the operating performance of our business by evaluating financial and non-financial metrics such as room revenue per available room ("RevPAR"); total revenue per available room ("Total RevPAR"); average daily rate ("ADR"); occupancy rate ("Occupancy"); funds from operations ("FFO"); Adjusted FFO; earnings before interest, income taxes, depreciation and amortization ("EBITDA"); and EBITDA