Pebblebrook Hotel Trust : Update on Recent Operating Trends

skamania lodge - luxury glamping unit

Pebblebrook Update on Recent Operating Trends

May 2024

P E B B LE B R OOK U P D A TE ON R E CE N T OP E R A TI N G TR E N D S

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

Chief Financial Officer

1. [e-mail]

w los angeles - west beverly hills

jekyll island club resort

2

P E B B LE B R OOK U P D A TE ON R E CE N T OP E R A TI N G TR E N D S

Updates on Operating Trends

• April Performance Highlights: Operating results and demand trends were in line with expectations. Same-Property RevPAR decreased by 2.2%, with occupancy improving by 0.9 percentage points and ADR declining by 3.4%. Same- Property Total Revenues decreased by 1.2%, with Non-Room Revenue increasing by 0.5% year-over-year. Same- Property Expenses were well controlled, increasing by only 2.5%. The calendar shifts of Easter and Passover, along with several large conventions moving out of April into other months, impacted April's overall performance.
• Redevelopment Updates:
• • Newport Harbor Island Resort (Newport, RI): The $49 million dramatic transformation is substantially complete. This premier luxury resort destination in New England reopened in late April to a comprehensive property-wide renovation and complete remerchandising, adding and expanding multiple restaurants/bar outlets and stores.
  • Estancia La Jolla Hotel & Spa (La Jolla, CA): The $26 million redevelopment is substantially complete. Enhancements include transformed guestrooms, brand new event lawns, a stunningly appointed ballroom, and an all-new lobby, with a welcoming patio, lobby bar, a new coffee and juice bar, a new pool bar and grill, additional poolside cabanas, and the creation of new cabana rooms.
  • Skamania Resort (Columbia River Gorge, WA): The $20 million Phase 1 of a larger master plan is substantially complete. Seven new alternative lodging accommodations were added, including two 2-bedroom cabins, one 3-bedroom villa, and five luxury glamping units, each with luxury bathrooms. Infrastructure for a large number of additional alternative lodging units was also completed.

estancia la jolla hotel & spa

Note: April 2024 Same-Property metrics Include information for all the hotels the Company owned as of May 22, 2024, excluding LaPlaya Beach Resort & Club and Newport Harbor Island Resort.

3

P E B B LE B R OOK U P D A TE ON R E CE N T OP E R A TI N G TR E N D S

Recent Operating Trends Detail

• Portfolio Trends: In April, Same-Property Occupancy increased by 0.9 percentage points, driven by gains at the Company's recently redeveloped resorts and strong performance in San Diego, Boston, and Washington, D.C. Same- Property ADRs declined by 3.4%.
• Urban Operating Trends: The Company's urban hotels performed as expected, with Same-Property Occupancy improving by 0.3 percentage points and Same-Property ADR declining by 2.2%. San Diego, Boston and Washington D.C. led urban market performance. Pebblebrook's recently redeveloped properties showed significant RevPAR gains compared with the prior year period, with Margaritaville Hotel San Diego Gaslamp Quarter increasing by 137% and Hilton San Diego Gaslamp Quarter climbing by 81%. The Company's San Francisco properties in total experienced a decline in RevPAR, primarily due to a major convention shifting from April to May this year. Chicago RevPAR also fell due to a soft April convention calendar on a year-over-year basis.
• Resort Operating Trends: Same-Property resorts experienced a year-over-year Occupancy increase of 310 basis points, with demand rising across all markets. Resort ADR declined 7.0%. Estancia La Jolla Hotel and Spa, following the completion of its redevelopment program, led all resorts with a RevPAR increase of 65%.

						Variance to 2023
2024 Same-Property	Occ	ADR	RevPAR	Total	Hotel	RevPAR	Total	Hotel
Portfolio(1)	Revenue	EBITDA	Revenue	EBITDA
January	51%	$295	$151	$84.8	$8.1	5%	6%	15%
February	63%	$294	$184	$94.9	$19.1	0%	3%	(2%)
March	70%	$307	$215	$115.4	$32.5	1%	0%	(6%)
Q1 2024	61%	$299	$183	$295.1	$59.8	2%	2%	(2%)
April(E)	73%	$303	$220	$115.4	$31.0	(2%)	(1%)	(10%)

hotel zena washington dc

4

Note: Dollars in millions, except for ADR, RevPAR and per share data.

(1) Includes information for all the hotels the Company owned as of May 22, 2024, except for LaPlaya Beach Resort & Club and Newport Harbor Island Resort.

P E B B LE B R OOK U P D A TE ON R E CE N T OP E R A TI N G TR E N D S

Reconciliation of Non-GAAP Financial Measures

Pebblebrook Hotel Trust

Same-Property Portfolio

Reconciliation of Hotel Net Income to Hotel EBITDA January, February, March and April (Estimate) 2024 (Unaudited, in millions)

	For the month		For the month		For the month		For the month
	of January,		of February,		of March,		of April(E),
	2024	2024	2024	2024
Hotel net income (loss)	($9.5)	$1.5	$14.7	$13.3
Adjustment:
Depreciation and amortization	$17.6	$17.6	$17.8	$17.7
Hotel EBITDA	$8.1		$19.1		$32.5		$31.0

This presentation includes certain non-GAAP financial measures as defined under Securities and Exchange Commission (SEC) rules. These measures are not in accordance with, or an alternative to, measures prepared in accordance with U.S. generally accepted accounting principles, or GAAP, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the hotels' results of operations determined in accordance with GAAP.

The Company has presented estimated hotel EBITDA for the periods above because it believes this measure provides investors and analysts with an understanding of hotel-level operating performance. This non-GAAP financial measure does not represent amounts available for management's discretionary use, because of needed capital replacement or expansion, debt service obligations or other commitments and uncertainties, nor is it indicative of funds available to fund the Company's cash needs, including its ability to make distributions.

The Company's presentation of actual and estimated hotel EBITDA for the periods above should not be considered as an alternative to hotel net income (computed in accordance with GAAP) as an indicator of the hotels' financial performance. Any differences are a result of rounding.

5

jekyll ocean club resort