Pebblebrook Hotel Trust Provides Update on Impact of Hurricane Milton and Other Named Storms
In This Article:
BETHESDA, Md., October 30, 2024--(BUSINESS WIRE)--Pebblebrook Hotel Trust (NYSE: PEB) (the "Company" or "Pebblebrook") today provided an update regarding the impact of Hurricane Milton and other recent named storms on its properties, including the expected net financial impact. Except for LaPlaya Beach Resort & Club ("LaPlaya"), all of the Company’s southeast resorts are fully operational.
LaPlaya, the 189-room luxury waterfront resort in Naples, Florida, is making significant strides in its restoration efforts following the impacts of Hurricane Helene on September 26, 2024, and Hurricane Milton on October 9, 2024. The Gulf Tower (70 rooms) and the Bay Tower (40 rooms), along with BALEEN Naples, the resort’s primary restaurant and bar, are all scheduled to reopen on November 1, 2024.
LaPlaya’s Beach House building (79 rooms) remains closed for repairs primarily due to water and sand infiltration affecting ground-floor guestrooms. The resort's pools are also closed for temporary clean-up and repairs, with reopening expected in the near future. The Company currently anticipates that repair costs will not be material and expects that property, flood, and business interruption insurance, net of deductibles, will substantially mitigate the financial impact. Assuming normal and customary local approvals, the Company is currently estimating that the Beach House will reopen partially over the coming months and be largely operational by the end of Q1 2025.
Pebblebrook's other resorts in southern Florida and Georgia remain fully operational and sustained no material property damage. However, these properties and LaPlaya experienced considerable cancellations and reduced booking volumes both before and following the storms, affecting operating performance in the third and fourth quarters. The most significant impact has been at LaPlaya. Please note that the Company continues to exclude LaPlaya from its Same-Property reporting due to LaPlaya’s ongoing restoration following Hurricane Ian. However, the estimated impact on LaPlaya’s operating performance is reflected in Adjusted EBITDAre, Adjusted FFO and Adjusted FFO per share, as shown in the table below.
Currently, the estimated impact to the Company’s operating performance from the named storms during the third and fourth quarters of 2024 is expected to be as follows:
|
| Q3 2024 | Q4 2024 | Full Year 2024 | ||
|
| $ in millions, except for RevPAR and per share data | ||||
| Net Income (Loss)(1) | ($1.5) | ($10.0) | ($11.5) | ||
| Same-Property RevPAR variance vs. 2023(2) | (25 bps) | (100 bps) | (30 bps) | ||
| Same-Property Total Revenue(2) | ($1.2) | ($3.0) | ($4.2) | ||
| Same-Property Hotel EBITDA(2) | ($1.2) | ($2.5) | ($3.7) | ||
| Adjusted EBITDAre(1) | ($1.5) | ($10.0) | ($11.5) | ||
| Adjusted FFO(1) | ($1.5) | ($10.0) | ($11.5) | ||
| Adjusted FFO per share(1) | ($0.01) | ($0.08) | ($0.10) | ||
| (1) | No reconciliations from Net income (loss) to non-GAAP financial measures, including Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre"), Adjusted EBITDAre, Funds from Operations ("FFO"), FFO per diluted share, Adjusted FFO and Adjusted FFO per diluted share, are provided in this press release because, in each case, there are no adjustments to be made. |
| (2) | The Company’s Same-Property reporting includes information for all the hotels the Company owned as of October 30, 2024, except for LaPlaya Beach Resort & Club (excluded from all quarters) and Newport Harbor Island Resort (excluded from Q1, Q2, Q4). |
These figures represent Pebblebrook’s best estimates at this time. The Company will continue to evaluate the storms’ impact and provide additional updates in the future as appropriate.