April 2024 Investor Presentation

laplaya beach resort & club

I N V E S TOR P R E S E N TA TI ON A P R I L 2 0 2 4

Forward-Looking Statements

This presentation contains forward-looking statements that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of Pebblebrook Hotel Trust's (the "Company" or "Pebblebrook") business, financial condition, liquidity, results of operations, plans and objectives. These forward-looking statements are based on the Company's beliefs, assumptions, estimates and expectations of future performance, taking into account information currently available to the Company. These beliefs, assumptions, estimates and expectations can change as a result of many possible events or factors, not all of which are known to the Company. If a change occurs, the Company's business, prospects, financial condition, liquidity and results of operations may vary materially from these forward-looking statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2023. You should carefully consider these risks when you make an investment decision concerning the Company's securities. You are cautioned not to place undue reliance on any forward-looking statements. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation does not constitute, and may not be used in connection with, an offer or solicitation by anyone.

The Company assumes no obligation to update or revise any of the information in this document.

The following presentation includes financial projections and forward-looking statements. These projections and forward-looking statements are based on assumptions and estimates developed by the Company and actual results may vary from the projections and such variations may be material. This presentation includes estimates and the Company makes no representation as to the accuracy of these estimates. Additionally, this presentation should not be relied upon or regarded as a representation by the Company, management or its employees that the forward-looking statements, or beliefs, assumptions, estimates or expectations of future performance underlying them, will be achieved.

Investor Inquiries:

Raymond D. Martz

Co-President and Chief Financial Officer

  1. 507-1330rmartz@pebblebrookhotels.com

jekyll island club resort

hotel monaco washington dc

2

I N V E S TOR P R E S E N TA TI ON A P R I L 2 0 2 4

The Premier Lifestyle Lodging REIT

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.

Pebblebrook Overview

46

13

50/50

Hotels and

Urban and

Business/Leisure

Resorts

Resort Markets

Customer Mix

~$284M

$108M+

$28.50

($0.60/share)

trading at 47%

discount

2018-2024

Hotel EBITDA

NAV per Share

Opportunity

ROI Investments

Midpoint Estimate(1)

(AFFO Upside)

the liberty boston

southernmost resort key west

inn on fifth naples

hilton san diego gaslamp

1 hotel san francisco

margaritaville hollywood resort

3

(1) Reflects management's current estimate for Net Asset Value per Share vs. the Company's current share price of approximately $15.00.

I N V E S TOR P R E S E N TA TI ON A P R I L 2 0 2 4

Portfolio Shift: Increasing Leisure Focus & Group Segmentation

Over the last five years, Pebblebrook has strategically realigned its portfolio, reducing smaller urban hotels and

adding larger leisure-focused properties, thereby boosting business group demand and decreasing business transient reliance. As a result, the Company's group mix has climbed to approximately 30%. Enhancements like new and redeveloped event spaces and meeting venues, renovated guestrooms and additional amenities have strengthened the appeal for year-round events, diversifying revenue streams and solidifying market presence.

Columbia River Gorge Portland

San Francisco

Santa Cruz

Los Angeles

Santa Monica

San Diego

= Urban Location = Resort Location

Boston

Newport

Chicago

Washington D.C.

Jekyll Island

Naples

Fort Lauderdale/

Hollywood

Key West

Guest Segmentation

25%

45%

25%

5%

Leisure Transient

Business Transient

Leisure Group

Business Group

4

I N V E S TOR P R E S E N TA TI ON A P R I L 2 0 2 4

Market Repositioning: Reducing West Coast Urban Footprint, Enhancing Leisure-Oriented Presence

Since 2019, Pebblebrook has shifted its focus towards resort and leisure-focused properties, while reducing its emphasis on urban and corporate transient locations. The Company acquired 5 leisure-oriented properties ($802M) and sold 14 urban properties ($1.1B). This strategic shift notably decreased San Francisco's EBITDA contribution by 17 percentage points, while also helping to increase the combined EBITDA contribution from Southeast markets (including Key West, Naples, Hollywood/Miami and Jekyll Island) by 18 percentage points. Portfolio-wide, the EBITDA contribution from urban properties decreased to 54% from 83%, while the resorts increased to 46% from 17%. West Coast properties now contribute 44% (down from 56%), whereas East Coast properties contribute 53% (up from 38%).

Top 5Markets -73%

ExitedMarkets

Portfolio Hotel EBITDA by Market - 2019 to 2023

2019 2023

San Diego

Boston

Naples(1)

West LA/Santa Monica

Key West

San Francisco

Hollywood/Miami

Chicago

Washington, DC

Columbia River Gorge

Newport, RI

Jekyll Island

Portland

Santa Cruz

Buckhead

Seattle

Philadelphia

Nashville

New York

0%

5%

10%

15%

20%

25%

Hotel EBITDA Contribution

Market

YE '23

YE '19

Var.

San Diego

21%

14%

7%

Boston

21%

17%

4%

Naples(1)

12%

3%

9%

West LA/Santa Monica

11%

11%

0%

Key West

8%

5%

3%

San Francisco

6%

23%

(17%)

Hollywood/Miami

6%

1%

5%

Chicago

3%

4%

(1%)

Columbia River Gorge

3%

1%

2%

Washington, DC

3%

6%

(3%)

Newport, RI

3%

0%

3%

Jekyll Island

1%

0%

1%

Santa Cruz

1%

1%

0%

Portland

1%

5%

(4%)

Buckhead

0%

3%

(3%)

Seattle

0%

2%

(2%)

Philadelphia

0%

2%

(2%)

Nashville

0%

1%

(1%)

New York

0%

1%

(1%)

East Coast

53%

38%

15%

West Coast

44%

56%

(12%)

Central

3%

6%

(3%)

Resort

46%

17%

29%

Urban

54%

83%

(29%)

Note: 2023 data includes all hotels owned by the Company as of March 31, 2024.

5

(1) 2023 EBITDA assumes LaPlaya Beach Resort & Club's pre-hurricane forecast for 2022.

I N V E S TOR P R E S E N TA TI ON A P R I L 2 0 2 4

Reasons to Invest in Pebblebrook

Continued urban market demand recovery is expected to fuel robust EBITDA growth, given that occupancy levels remain well below pre-pandemic benchmarks.

Strong RevPAR and market share gains from over $280M of ROI-relatedredevelopments and repositionings will drive significant, organic EBITDA growth across the Company's portfolio over the next several years.

Acquiring ownership in the Company at a

45%+ discount to estimated private market NAV provides an

exceptional investment opportunity.

Images (top to bottom): Viceroy Washington DC, Estancia La Jolla Hotel & Spa, Le Méridien Delfina Santa Monica

6

I N V E S TOR P R E S E N TA TI ON A P R I L 2 0 2 4

Significant Growth Opportunity

Within the next three to four years, the Company expects to achieve significant upside in Hotel EBITDA and Adjusted FFO from continued urban demand recovery, recent and current major ROI capital investments, and

the recently completed restoration and reopening of LaPlaya Beach Resort & Club.

Hotel EBITDA Upside of ~$108M

$0.60/Share of AFFO Upside

$35M

$457M

$21M

$0.17/Share

$52M

$0.43/Share

$349M

2023A(1)

Urban Recovery

ROI from

Stabilized

EBITDA Growth

EBITDA Scenario

Redevelopment Projects

LaPlaya EBITDA

Opportunity

(1) Based on 2023 operating results; includes all hotels owned by the Company as of March 31, 2024.

7

Continued urban hotel demand recovery is poised to significantly boost EBITDA, with limited new supply risk

w boston

I N V E S TOR P R E S E N TA TI ON A P R I L 2 0 2 4

Business Travel Recovery: Urban Markets Lead the Way

Business travel is continuing to recover, with urban markets benefitting the most, and group leading the business travel recovery. Urban hotel performance is still substantially below 2019 levels, but this presents a significant growth opportunity as business and leisure demand continues to climb back toward pre-pandemic levels, and these markets benefit from extremely restricted new supply for many years to come.

Pebblebrook's Top Urban Markets by EBITDA Contribution

Occupancy

2019

2022

2023

'23 vs. '22

'23 vs. '19

Boston

88%

78%

78%

(1%)

(12%)

Los Angeles

83%

64%

73%

14%

(12%)

San Diego

85%

73%

72%

(2%)

(15%)

San Francisco(1)

88%

47%

61%

28%

(31%)

Chicago

72%

57%

61%

7%

(16%)

Washington, DC

77%

49%

64%

29%

(17%)

Total Urban(2)

83%

63%

68%

9%

(18%)

RevPAR

2019

2022

2023

'23 vs. '22

'23 vs. '19

Boston

$254

$241

$253

5%

0%

Los Angeles

$229

$204

$222

8%

(3%)

San Diego(3)

$187

$181

$184

1%

(2%)

San Francisco(1)

$253

$133

$164

23%

(35%)

Chicago

$143

$117

$126

8%

(12%)

Washington, DC

$181

$134

$176

32%

(3%)

Total Urban(2)

$214

$175

$191

9%

(11%)

ADR

2019

2022

2023

'23 vs. '22

'23 vs. '19

Boston

$287

$308

$326

6%

14%

Los Angeles

$277

$317

$303

(5%)

9%

San Diego

$220

$248

$256

3%

16%

San Francisco(1)

$287

$282

$270

(4%)

(6%)

Chicago

$198

$206

$207

1%

5%

Washington, DC

$235

$271

$276

2%

18%

Total Urban(2)

$258

$278

$280

1%

9%

Hotel EBITDA(4)

2019

2022

2023

'23 vs. '22

'23 vs. '19

Boston

84.2

80.3

80.2

0%

(5%)

Los Angeles

56.1

41.4

41.6

0%

(26%)

San Diego(3)

42.0

35.0

32.3

(8%)

(23%)

San Francisco(1)

69.7

15.8

24.2

54%

(65%)

Chicago(5)

20.1

12.1

15.8

31%

(22%)

Washington, DC

22.0

10.2

12.7

25%

(42%)

Total Urban(2)

$311.7

$202.4

$211.3

4%

(32%)

(1) Excludes 1 Hotel San Francisco from Q1-Q2 (but includes in Q3-Q4) due to its closure for redevelopment and excludes Hotel Zoe Fisherman's Wharf from Q4 (but includes in Q1-Q3) due to its sale.

(2) Includes information for all urban hotels the Company owned as of March 31, 2024, except for 1 Hotel San Francisco (excluded from Q1-Q2, but included in Q3-Q4), Hotel Monaco Seattle

(included in Q1, but excluded from Q2-Q4), Hotel Vintage Seattle (included in Q1, but excluded from Q2-Q4), Westin Michigan Avenue Retail Parcel (included in Q1, but excluded from Q2-Q4),

Hotel Zoe Fisherman's Wharf (included in Q1-Q3, but excluded from Q4), and Marina City Retail Parcel (included in Q1-Q3, but excluded from Q4).

(3) 2023 includes renovation disruption from Hilton San Diego Gaslamp Quarter and Margaritaville Hotel San Diego Gaslamp Quarter, which negatively impacted RevPAR by approximately 75 bps

9

and Hotel EBITDA by approximately $3 million.

  1. Hotel EBITDA shown in millions.
  2. Excludes Westin Michigan Avenue Retail Parcel from Q2-Q4 (but includes in Q1) and excludes Marina City Retail Parcel from Q4 (but includes in Q1) due to their respective sales.

I N V E S TOR P R E S E N TA TI ON A P R I L 2 0 2 4

Encouraging Fundamentals for Urban Markets

Limited available construction financing is expected to constrain new supply growth in urban markets for many years. This creates a very favorable operating environment in the intermediate term for hotels as business travel

recovers from the pandemic, and as business transient and group/convention, domestic leisure, and

international inbound travel return to the cities.

PEB Urban Market Supply Growth

Market

Pre-Pandemic

3Y Supply

Average(1)

Forecast(2)

Portland

4.9%

1.5%

Chicago

3.7%

0.3%

Boston

3.4%

0.7%

Washington, DC

3.0%

0.6%

Santa Monica

2.0%

0.0%

Hollywood/Beverly Hills

1.8%

0.4%

San Diego CBD

1.8%

0.5%

San Francisco

0.4%

0.0%

Wtd. Average

1.5%

0.5%

US Urban Supply Growth 2010-2019,2023-2026(3)

2.7%

2.8% 2.9%

2.9%

1.8%

2010-2019 Avg: 1.9%

1.7%

1.5%

1.4%

1.1%

0.8%

0.7%

0.4%

0.4%

0.3%

//

'10

'11

'12

'13

'14

'15

'16

'17

'18

'19

'23

'24(F) '25(F) '26(F)

Convention Calendar Room Nights On-the-Books(4)

Market

Pre-Pandemic

2022

2023

2024

2025

Average(1)

Boston

440

340

490

470

490

San Diego

770

650

750

890

835

San Francisco

840

320

610

410

555

Washington, DC

520

475

380

490

405

Chicago

1,140

1,150

1,050

1,200

1,070

Total

3,710

2,935

3,280

3,460

3,355

Demand Change %

(21%)

12%

5%

(3%)

  1. Average from 2015-2019.
  2. 3 Year ("3Y") supply forecast is the average of management's supply forecast for 2024-2026.
  3. 2010-2023data is based on U.S. Urban STR performance; 2024-2026 data is based on management's estimates.
  4. Room Nights On-the-Books are shown in thousands.

margaritaville hotel san diego gaslamp quarter

10

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Pebblebrook Hotel Trust published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 20:17:53 UTC.