Exhibit 99.1
|
2 Bethesda Metro Center, Suite 1530, Bethesda, MD 20814 T: (240) 507-1300, F: (240) 396-5626 www.pebblebrookhotels.com |
News Release
Pebblebrook Hotel Trust Acquires the Viceroy Miami
Bethesda, MD, May 26, 2011 — Pebblebrook Hotel Trust (NYSE: PEB) (the
“Company”) today announced that it has acquired the Viceroy Miami hotel for $36.5 million. The
148-room, luxury, full-service hotel is located in downtown Miami, Florida, in the ICON Brickell
complex. The property will continue to be managed by Viceroy Hotel Group (“Viceroy”).
“We are pleased to be acquiring the Viceroy Miami at an extremely attractive price and
furthering the geographic diversification of our growing portfolio,” said Jon Bortz, Chairman and
Chief Executive Officer of Pebblebrook Hotel Trust. “Miami has historically performed very well in
recovery cycles and the distinctive quality and location of the Viceroy Miami creates a very strong
investment opportunity for our company. The hotel benefits from its location within the ICON
Brickell complex along Brickell Avenue, a high-end business district in Miami. This cosmopolitan
area has redefined itself in recent years as the city’s work-play epicenter, with upscale
residences, shops, restaurants, nightlife and entertainment, successfully creating a unique mix of
corporate and leisure demand.”
The Miami metropolitan market has experienced unprecedented growth over the past two decades,
benefitting from a healthy tourism industry that now attracts 38 million visitors annually from
around the world, as well as the city’s strong connection to South America’s rapidly expanding
business centers.
The Viceroy Miami is located along Brickell Avenue in Miami, Florida, in one of the three ICON
Brickell towers overlooking the Miami skyline, Miami River and Biscayne Bay. The ICON Brickell is
a ten-acre urban development that consists of three skyscraping towers, of which the North and
South Towers include condominium residences, and the Viceroy Tower, which includes both
condominiums and the Viceroy Miami hotel. Brickell Avenue is considered by many to be the “Wall
Street of the South” and contains a large concentration of international financial institutions,
along with some of the area’s most vibrant and prominent restaurants, nightlife and residences.
Recently constructed in 2009, the Viceroy Miami is a luxury hotel that features 148 stylishly
appointed guest rooms designed by Kelly Wearstler. The hotel includes a unique array of amenities,
including oversized guest rooms, each with its own convenience kitchen, flat screen HDTVs and
Sferra custom linens and robes, in addition to the three food and beverage outlets, full-service
spa and distinctive meeting and event space.
The hotel’s three meal a day restaurant, Eos, offers a Mediterranean-inspired menu featuring
bold flavors rooted in health and lightness and a decor combining classical lines with exotic
finishes that create a “Miami-style” elegance. Cafe Icon, located in the south ICON Brickell
tower, is a coffee and sandwich shop that provides service for hotel and residential guests. Club
50, sitting atop the 50-story Viceroy Tower, offers
spectacular surrounding views of Miami and Biscayne Bay, as well as an Asian-inspired private pool
and lounge area that provides a lighter-fare menu, innovative cocktails and quintessential Miami
nightlife.
Hotel guests have access to the Spa at Viceroy Miami, which is located in the south ICON
Brickell Tower. The Spa encompasses 28,000 square feet and includes a 5,000-square foot water
lounge, 2,500-square foot state-of-the-art gym, juice bar, Redwood saunas and 10 spa treatment
rooms. The hotel also offers over 4,000 square feet of meeting space spread across three rooms
that provide views of the Miami River, Biscayne Bay and downtown Miami. In addition to the spa,
guests also have access to the 15th floor two-acre outdoor park terrace that features a
wading pool, thermal hot tub and Olympic-length lap and recreational infinity pool overlooking
Biscayne Bay.
In 2010, during the early stage of ramp up from its prior year opening, the Viceroy Miami
operated at 68% occupancy, with an ADR of $183. During the next 12 months, the Company currently
forecasts that the hotel will generate earnings before interest, taxes, depreciation and
amortization (“EBITDA”) of $2.4 to $2.7 million and net operating income after capital reserves of
$1.7 to $2.0 million.
The hotel will continue to be managed by the Viceroy Hotel Group, which has managed the hotel
since its opening in 2009.
“We are delighted to be working with Pebblebrook Hotel Trust at the Viceroy Miami,” said
Viceroy Hotel Group’s Brad Korzen. “The hotel continues to show excellent growth potential and we
look forward to future success at the Viceroy Miami working closely with Pebblebrook Hotel
Trust. This is the second property that Pebblebrook has acquired from our portfolio and
we look forward to a continued great partnership.”
“We’re excited to further expand our relationship with the Viceroy Hotel Group through our
acquisition of the Viceroy Miami. We’re confident that their operational expertise will continue
to make the Viceroy Miami a sought after destination in the Miami marketplace,” continued Mr.
Bortz.
The Company expects to incur approximately $0.5 million of costs related to the acquisition of
this hotel that will be expensed as incurred.
The Viceroy Miami marks the thirteenth acquisition for the Company, comprising over $1.0
billion of invested capital since completing its initial public offering in December 2009.
The Company has previously announced a signed agreement to purchase one other hotel:
- $89.5 million for the W Boston in Boston, Massachusetts.
Closing for this hotel is subject to customary closing requirements and conditions.
Accordingly, the Company can give no assurance that the transaction will be consummated on the
terms initially disclosed or at all.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust is a publicly traded real estate investment trust (“REIT”) organized
to opportunistically acquire and invest primarily in upper upscale, full-service hotels located in
large urban and resort markets with an emphasis on the major coastal cities. The company owns 13
hotels, totaling 3,428 guest rooms, in six states and the District of Columbia, including 12
markets: Bethesda, Maryland; San Francisco, California; Buckhead, Georgia; Washington, DC;
Minneapolis, Minnesota; Stevenson, Washington; Santa Monica, California; Philadelphia,
Pennsylvania; San Diego, California; Seattle, Washington; West Hollywood, California; and Miami,
Florida. For more information, please visit www.pebblebrookhotels.com.
Click here to visit the Viceroy Miami hotel website
About Viceroy Hotel Group
Viceroy Hotel Group delivers one-of-a-kind lifestyle experiences that bring together
provocative design and intuitive service in sought-after locations. The current portfolio of
managed properties includes two luxury brands, Viceroy and The Tides. Viceroy Hotels & Resorts
exemplify a passion for authentic, visionary design and personalized service. Signature Viceroy
amenities and services created for the brand’s diverse business and leisure guests include dynamic
dining venues featuring world-class culinary talents and destination spas specializing in health,
fitness and beauty. Current Viceroy properties include hotels and
Page 2
resorts in Santa Monica, Palm
Springs, Miami, Anguilla and Snowmass, Colorado with forthcoming openings in Beverly Hills (in what
is currently L’Ermitage Beverly Hills), the Maldives and Sowwah Island in Abu Dhabi. The Tides
brand offers chic beachfront backdrops that inspire reconnection through cultural experiences
delivered with style and spirit. Every Tides destination interprets indigenous cultural elements,
expressed in each property’s décor, cuisine, and spa. The Tides collection includes hotels and
resorts in Miami’s South Beach, Mexico’s Riviera Maya and Zihuatanejo, as well as upcoming
developments on St. Lucia in the Caribbean, which is currently operating as Jalousie Plantation.
The Urban Retreat Collection includes Avalon Hotel in Beverly Hills, Maison 140 in Beverly Hills,
and Sheraton Delfina in Santa Monica.
Click here to visit the Viceroy Hotel Group website
This press release contains certain “forward-looking” statements relating to, among other
things, potential property acquisitions, hotel EBITDA, hotel net operating income after capital
reserves, acquisitions costs and projected demand. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,”
“intend,” “expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,” “could,”
“project,” “predict,” “forecast,” “continue,” “plan” or other similar words or expressions.
Forward-looking statements are based on certain assumptions and can include future expectations,
future plans and strategies, financial and operating projections or other forward-looking
information. Examples of forward-looking statements include the following: projections of
hotel-level EBITDA and net operating income after capital reserves; projections of acquisition
costs; descriptions of the Company’s plans or objectives for future operations, acquisitions or
services; forecasts of future economic performance and potential increases in average daily rate,
occupancy and room demand; and descriptions of assumptions underlying or relating to any of the
foregoing expectations regarding the timing of their occurrence. These forward-looking statements
are subject to various risks and uncertainties, many of which are beyond the Company’s control,
which could cause actual results to differ materially from such 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 (“SEC”), including, without limitation, the Company’s
Annual Report on Form 10-K for the year ended December 31, 2010. Unless legally required, the
Company disclaims any obligation to update any forward-looking statements, whether as a result of
new information, future events or otherwise.
For further information about the Company’s business and financial results, please refer to
the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and
“Risk Factors” sections of the Company’s SEC filings, including, but not limited to, its Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the
Investor Relations section of the Company’s website at www.pebblebrookhotels.com and at www.sec.gov
..
All information in this release is as of May 26, 2011. The Company undertakes no duty to
update the statements in this release to conform the statements to actual results or changes in the
Company’s
expectations. The Company assumes no responsibility for the contents or accuracy of the
information on any of the non-Company websites mentioned herein, which are included solely for ease
of reference.
Contact:
Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel Trust — (240) 507-1330
For additional information or to receive press releases via email, please visit our website at
www.pebblebrookhotels.com
www.pebblebrookhotels.com
###
Page 3
Pebblebrook Hotel Trust
Viceroy Miami
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income
12-Month Forecast
(Unaudited, in millions)
Viceroy Miami
Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income
12-Month Forecast
(Unaudited, in millions)
| Range | ||||||||||||
| Low | High | |||||||||||
Hotel net income |
$ | 1.2 | to | $ | 1.5 | |||||||
Adjustment: |
||||||||||||
Depreciation and amortization (1) |
1.2 | 1.2 | ||||||||||
Hotel EBITDA |
$ | 2.4 | $ | 2.7 | ||||||||
Adjustment: |
||||||||||||
Capital reserve |
(0.7 | ) | (0.7 | ) | ||||||||
Hotel Net Operating Income |
$ | 1.7 | $ | 2.0 | ||||||||
| (1) | Depreciation and amortization has been estimated based on a preliminary purchase price allocation. A change, if any, in the allocation will affect the amount of depreciation and amortization and the resulting change may be material. |
This press release 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 hotel’s results of operations determined in
accordance with GAAP.
The Company has presented forecasted hotel EBITDA and forecasted hotel net
operating income after capital reserves, because it believes these measures
provide investors and analysts with an understanding of the hotel-level
operating performance. These non-GAAP measures do 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 are they indicative of funds available to fund the Company’s
cash needs, including its ability to make distributions.
The Company’s presentation of the hotel’s forecasted EBITDA and forecasted net
operating income after capital reserves should not be considered as an
alternative to net income (computed in accordance with GAAP) as an indicator of
the hotel’s financial performance. The table above is a reconciliation of the
hotel’s forecasted EBITDA and net operating income after capital reserves
calculations to net income in accordance with GAAP.
Pebblebrook Hotel Trust
Historical Hotel Pro Forma Operating Data
(In thousands)
(Unaudited)
Historical Hotel Pro Forma Operating Data
(In thousands)
(Unaudited)
Historical Operating Data
| First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||||
| 2010 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
Pro forma Occupancy |
70.2 | % | 79.5 | % | 79.7 | % | 70.6 | % | 75.0 | % | ||||||||||
Pro forma ADR |
$ | 169.21 | $ | 173.68 | $ | 176.35 | $ | 177.23 | $ | 174.21 | ||||||||||
Pro forma RevPAR |
$ | 117.15 | $ | 136.68 | $ | 139.22 | $ | 123.56 | $ | 129.20 | ||||||||||
Pro forma Hotel Revenues |
$ | 61,483 | $ | 71,053 | $ | 71,223 | $ | 67,648 | $ | 271,407 | ||||||||||
Pro forma Hotel EBITDA |
$ | 10,877 | $ | 17,698 | $ | 16,673 | $ | 13,534 | $ | 58,782 | ||||||||||
| First Quarter 2011 |
||||||||||||||||||||
Pro forma Occupancy |
69.0 | % | ||||||||||||||||||
Pro forma ADR |
$ | 183.50 | ||||||||||||||||||
Pro forma RevPAR |
$ | 125.15 | ||||||||||||||||||
Pro forma Hotel Revenues |
$ | 65,834 | ||||||||||||||||||
Pro forma Hotel EBITDA |
$ | 12,207 | ||||||||||||||||||
These historical hotel operating results include results from the hotels the Company owned as of May 26, 2011 including: DoubleTree by Hilton
Bethesda-Washington DC, Sir Francis Drake, InterContinental Buckhead, Hotel Monaco Washington DC, Skamania Lodge, Sheraton Delfina, Sofitel
Philadelphia, Argonaut Hotel, The Westin Gaslamp Quarter, Hotel Monaco Seattle, Mondrian Los Angeles and Viceroy Miami. This schedule excludes The
Grand Hotel Minneapolis. These historical operating results include results for periods prior to the Company’s ownership of the hotels. The
Company expects to include historical operating results for The Grand Hotel Minneapolis after the Company has owned the hotel for one year.
The data above is not audited, has been presented only for comparison purposes and is subject to change.
