Company: PEB
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001474098-25-000039
Chunk: 40

Company: Pebblebrook Hotel Trust
Filing Date: 2025-02-26
Form: 10-K
Item: Item 15
Chunk 40
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aritaville Hollywood Beach Resort ("Margaritaville"), which requires interest-only payments based on a floating rate equal to daily SOFR plus a spread of 3.75%. This loan matures on September 7, 2026 and may be extended for up to two one-year periods, subject to certain terms and conditions and payment of extension fees. The Company entered into an interest rate swap agreement to fix the SOFR rate on this mortgage loan. See Derivative and Hedging Activities for further discussion on the interest rate swaps. The Company's mortgage loans associated with Margaritaville and Estancia are non-recourse to the Company except for customary carve-outs to the general non-recourse liability. The loans contain customary provisions regarding events of default, as well as customary cash management, cash trap and lockbox provisions. Cash trap provisions are triggered if the hotel's performance is below a certain threshold. Once triggered, all of the cash flow generated by the hotel is deposited directly into lockbox accounts and then swept into cash management accounts for the benefit of our lender. These properties are not in a cash trap and no event of default has occurred under the loan documents.F-21

Table of ContentsInterest ExpenseThe components of the Company's interest expense consisted of the following for the years ended December 31, 2024, 2023, and 2022 (in thousands):For the year ended December 31,202420232022Unsecured revolving credit facilities$2,003 $2,074 $2,531 Unsecured term loan facilities67,928 73,151 52,355 Convertible senior notes13,125 13,125 13,125 Senior unsecured notes6,493 2,169 2,525 Mortgage debt12,931 14,704 9,788 Amortization of deferred financing fees, (premiums) and discounts10,268 8,104 16,465 Other(316)2,333 3,199 Total interest expense$112,432 $115,660 $99,988 Fair ValueThe Company estimates the fair value of its fixed rate mortgage loans and senior unsecured notes by discounting the future cash flows of each instrument at estimated market rates, taking into consideration general market conditions and maturity of the debt with similar credit terms and is classified within Level 2 of the fair value hierarchy. The Company estimates the fair value of its fixed rate convertible senior notes using public market prices