BETHESDA, Md.--(BUSINESS WIRE)--Pebblebrook Hotel Trust (NYSE: PEB) today provided an update on its second quarter operating trends and will conduct a conference call for investors at 10:30 AM ET to discuss the second quarter trends.
| HOTEL OPERATING TRENDS | - Hotel industry performance bottomed in mid-April
- Performance has improved gradually every week as travel demand slowly recovers
- Weekly improvements in occupancy have occurred in all of the Company’s markets, both resort and urban, since June 1, 2020
- Leisure travel is recovering much more rapidly and meaningfully than the overall hotel industry, which benefits the Company’s drive-to resorts
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| REOPENING OF HOTELS AND RESORTS | - Reopened 7 resorts between late May and late June, with all 8 resorts now open
- Reopened or reopening 9 additional urban hotels between late June and early July, bringing total open hotels and resorts to 23
- Expect to have approximately half of the Company’s hotels and resorts open by the end of July 2020
- The Company’s resorts are experiencing a significant recovery in occupancy and are achieving average daily room rates at a premium to the prior-year period
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| AVERAGE MONTHLY CASH BURN | - Monthly cash burn at the Company’s resorts was previously estimated at $2.5 to $3.0 million; the resorts are now expecting to generate positive Hotel EBITDA for the month of June, even though 5 of the resorts just reopened in June
- Monthly hotel portfolio cash burn now estimated at $12 to $15 million; a $3 million reduction compared to the Company’s previous estimate of $15 to $18 million
- Total corporate cash burn now estimated at $22 to $27 million; a $3 million reduction compared to the Company’s previous estimate of $25 to $30 million
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| UPDATE ON CREDIT AGREEMENT AMENDMENTS | - Amendments to credit agreements with the Company’s bank and private placement groups complete
- All financial covenants eliminated through Q1 2021, with less-restrictive financial covenants established through mid-year 2022
- Flexibility provided for acquisitions, new investments and substantial capital investments in renovations and redevelopments across the existing portfolio
- Extended most of the Company’s November 2021 debt maturity to November 2022
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The Company will provide additional details on second quarter operating results and other financial updates on the conference call. To participate in the conference call, please follow the steps listed below:
On Wednesday, July 1, 2020, dial (877) 705-6003 approximately ten minutes before the call begins (10:20 AM ET);
Tell the operator that you are calling for Pebblebrook Hotel Trust’s Second Quarter 2020 Update Conference Call;
State your full name and company affiliation and you will be connected to the call.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 54 hotels, totaling approximately 13,400 guestrooms across 15 urban and resort markets, with a focus on the west coast gateway cities. For more information, visit www.pebblebrookhotels.com and follow us at @PebblebrookPEB.
