Company: PEB
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001474098-25-000119
Chunk: 26

Company: Pebblebrook Hotel Trust
Filing Date: 2025-07-29
Form: 10-Q
Item: Item 1
Chunk 26
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10

Note 4. Investment in Hotel Properties

Investment in hotel properties as of June 30, 2025 and December 31, 2024 consisted of the following (in thousands):June 30, 2025December 31, 2024Land$800,517 $800,143 Buildings and improvements5,101,506 5,062,727 Furniture, fixtures and equipment550,096 539,616 Finance lease asset91,181 91,181 Construction in progress5,396 5,066 $6,548,696 $6,498,733 Operating lease, right-of-use asset346,348 351,150 Investment in hotel properties$6,895,044 $6,849,883 Less: Accumulated depreciation(1,645,559)(1,530,854)Investment in hotel properties, net$5,249,485 $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 now 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 the six months ended June 30, 2025, the Company recognized $7.5 million of business interruption insurance income. The Company recorded an insurance receivable for the remediation costs incurred and the estimate of the book value of the property and equipment written off in excess of the applicable deductibles. Through June 30, 2025, the Company received a total of $18.2 million in preliminary advances from the insurance providers. The Company is continuing to evaluate the financial impact of Hurricanes Helene and Milton and its ability to recover, through insurance policies, any loss due to business interruption or damage to LaPlaya.ImpairmentThe Company reviews its investment in hotel properties for impairment whenever events or circumstances indicate potential impairment. The Company periodically adjusts its estimate of future operating cash flows and estimated hold periods for certain properties. As a result of this review