Pebblebrook Hotel Trust Reports Improved Financial Results in Q3 2024, Year-to-Date

Pebblebrook Hotel Trust reported significant financial improvements in its third quarter and year-to-date results for 2024, as detailed in its recent 10-Q filing. For the three months ended September 30, 2024, total revenues reached $404.5 million, an increase of $8.7 million compared to $395.8 million in the same period of 2023. Year-to-date revenues also rose to $1.115 billion, up from $1.086 billion in 2023, reflecting a $29.8 million increase primarily driven by enhanced performance at key properties, including LaPlaya Beach Resort & Club and Margaritaville Hotel San Diego Gaslamp Quarter.

Operating income for the third quarter of 2024 was reported at $47.1 million, a substantial recovery from a loss of $26.0 million in the same quarter of the previous year. Year-to-date operating income also improved to $106.7 million, compared to $54.0 million in 2023. Net income for the third quarter was $45.1 million, reversing a loss of $56.5 million in 2023, while year-to-date net income totaled $49.9 million, compared to a loss of $32.3 million in the prior year.

The company’s total operating expenses for the third quarter decreased to $357.5 million from $421.8 million in 2023, attributed to lower costs associated with hotel operations and reduced depreciation expenses. Notably, an impairment loss of $1.9 million was recognized in 2024 due to damage from Hurricane Helene, significantly less than the $71.4 million impairment loss recorded in 2023.

As of September 30, 2024, Pebblebrook's total assets were $5.723 billion, down from $5.825 billion at the end of 2023. The company’s total liabilities also decreased to $2.881 billion from $2.975 billion, with total debt reduced to $2.208 billion from $2.320 billion. Shareholders' equity slightly declined to $2.752 billion from $2.763 billion.

In terms of strategic developments, the company has been actively managing its debt, including the issuance of $400 million in senior notes due in 2029, with proceeds used to repay various term loans. The company also extended the maturity dates of several loans, enhancing its liquidity position. As of September 30, 2024, Pebblebrook had $780.6 million in cash and cash equivalents, restricted cash, and available amounts on its credit facility, ensuring it can meet short-term cash requirements.

The company continues to focus on capital investments, with $100.9 million allocated for improvements in 2024, excluding costs related to LaPlaya Beach Resort & Club. The ongoing recovery from hurricane impacts and strategic property management are expected to support future performance.