Pebblebrook Hotel Trust : Update on Recent Operating Trends

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 (240) 507-1330rmartz@pebblebrookhotels.com

Updates on Operating Trends

• ▪ February Performance Highlights: Operating results and demand trends were in line with our expectations. Same-Property RevPAR grew 0.1%. Same-Property Total Revenue increased 3.4% year-over-year, driven by a 3.8% rise in Room Revenue and 2.7% growth in Non-Room Revenue. Same-Property Expenses rose by 4.8% (extra day this year), largely due to property insurance costs, which contributed an additional 80 bps to expense growth. Same-Property Expenses per occupied room fell 1.1%. Consequently, Same-Property EBITDA experienced a marginal decline compared to the same period last year, which was in-line with expectations. Our urban hotels continued to capitalize on favorable demand trends involving the ongoing recovery in business group and transient. Conversely, our resorts faced challenges due to adverse weather conditions on the West Coast and in Florida, impacting both business and leisure demand.

• ▪ Redevelopment Updates:

  • ▪ LaPlaya Beach Resort & Club (Naples, FL): The comprehensive restoration of the Beach House (79 rooms) is substantially complete. The Beach House has reopened, and the resort is ramping up operations.

  • ▪ Newport Harbor Island Resort (Newport, RI) & Estancia La Jolla Hotel & Spa (La Jolla, CA): The final phase of these redevelopment projects are progressing as expected. Both properties are aiming for substantial completion in April.

Note: Q1 2024 Same-Property metrics Include information for all the hotels the Company owned as of March 26, 2024, excluding LaPlaya Beach Resort & Club and Newport Harbor Island Resort.

Recent Operating Trends Detail

• ▪ Portfolio Trends: In February, Same-Property RevPAR increased by 0.1%, due to Occupancy increasing by 2.2% and ADR declining 2.1%. Total Portfolio Revenue rose by 3.4%, primarily benefitting from an extra day year-over-year.

• ▪ Urban Operating Trends: Our urban hotels had a solid performance in February as Occupancy improved by 2 percentage points and Total Revenues climbed 7.8% year-over-year. San Diego stood out with a notable 10.9% increase in occupancy and a 5.5% rise in ADR, leading to a significant 16.9% growth in RevPAR. This impressive growth was partly fueled by the success of our recently redeveloped properties, including Hilton San Diego Gaslamp Quarter (RevPAR up 67%) and Margaritaville Hotel San Diego Gaslamp Quarter (RevPAR up 33%)compared to February 2023.

• ▪ Resort Operating Trends: Performance at our resort properties fell slightly short of expectations, with resort Same-Property RevPAR down 7.2% year-over-year, primarily due to adverse weather conditions in the southeast and along the west coast, including atmospheric river events that brought heavy rains and dampened business and leisure demand in San Francisco, Los Angeles and San Diego. However, with most of our resorts now repositioned, we anticipate improvements in both occupancy and RevPAR penetration at our revitalized resorts during 2024 as these properties ramp up and gain market share.

southernmost beach resort

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

(1) Includes information for all the hotels the Company owned as of March 26, 2024, except for LaPlaya Beach Resort & Club and Newport Harbor Island Resort.

Reconciliation of Non-GAAP Financial Measures

Pebblebrook Hotel Trust

Same-Property Portfolio

Reconciliation of Hotel Net Income to Hotel EBITDA

January (Estimate) and February (Estimate) 2024

(Unaudited, in millions)

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.

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Pebblebrook Hotel Trust published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 11:00:03 UTC.