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8-K - FORM 8-K - Pebblebrook Hotel Trust | w83378e8vk.htm |
EX-10.1 - EX-10.1 - Pebblebrook Hotel Trust | w83378exv10w1.htm |
EX-10.2 - EX-10.2 - Pebblebrook Hotel Trust | w83378exv10w2.htm |
Exhibit 99.1
2 Bethesda Metro Center, Suite 1530,
Bethesda, MD 20814
Bethesda, MD 20814
T: (240) 507-1300, F: (240) 396-5626
www.pebblebrookhotels.com
www.pebblebrookhotels.com
News Release
Pebblebrook Hotel Trust And Denihan Hospitality Group
Execute
Agreement To Joint Venture Six Manhattan Hotels For $910
Million
BETHESDA, MD, JUNE 22, 2011 Pebblebrook Hotel Trust (NYSE: PEB) (Pebblebrook) and the
Denihan Hospitality Group (Denihan) today announced that they have entered into agreements
pursuant to which Pebblebrook will invest in a joint venture with affiliates of Denihan that own
six upper upscale hotels in Manhattan. The six upper upscale hotels Affinia Manhattan,
Affinia Shelburne, Affinia Dumont, Affinia 50, Affinia Gardens and The Benjamin currently
comprise 1,640 guestrooms, which will be increased to 1,730 guestrooms following the completion
of a renovation at the Affinia Manhattan this fall.
The transaction values the six hotels at approximately $910 million. The hotels are
currently subject to approximately $600 million in existing first mortgage and mezzanine debt
and Pebblebrook will make an approximate $152 million equity investment in the joint venture in
exchange for its 49% interest. Affiliates of Denihan will continue to own the remaining 51%
interest in the joint venture. Pebblebrook and Denihan will share joint control of all operating
and financial decisions for the joint venture.
Pebblebrook expects to fund its investment with available cash and borrowings from its
credit facility. The hotels will be leased to a joint venture lessee owned by Pebblebrook and
Denihan. The hotels will continue to be managed by Denihan.
The consummation of the transaction is subject to approval of the lenders to the joint
venture. Pebblebrook expects the transaction to close within the next 90 days; however, because
the transaction is subject to customary closing conditions, the Company can give no assurance
that the transaction will be consummated during this time period, or at all.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) 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 14 hotels, totaling 3,814 guest rooms, in eight states and the
District of Columbia, including 13 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; Miami, Florida; and Boston, Massachusetts. For more information, please
visit www.pebblebrookhotels.com.
About Denihan Hospitality Group
Denihan Hospitality Group is a privately-held, full-service hotel management and
development company that owns and operates 13 boutique hotels in major urban markets in the U.S.
Over the past 50 years, the Denihan family has built a world class lodging investment platform
within the boutique hotel space, creating value by acquiring, repositioning and managing
independent hotels. The Denihan portfolio includes properties operating under The James and
Affinia Hotels brands, as well as Manhattan luxury independents, The Surrey and The Benjamin,
and affiliates including the Royal Palm in Miami. The companys uniquely guest-centric approach,
refined through three generations of Denihan leadership, has made it an industry leader in
hospitality, property and restaurant development, as well as hotel operations, management and
marketing. More details can be found at www.denihan.com.
This press release contains certain forward-looking statements relating to, among other
things, potential property acquisitions and projected earnings, expenses and 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, the Companys expenses, share count or other financial
items; descriptions of the Companys plans or objectives for future operations, acquisitions or
services; forecasts of the Companys 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 Companys
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 Companys filings
with the Securities and Exchange Commission (SEC), including, without limitation, the Companys
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 Companys business and financial results, please refer to
the Managements Discussion and Analysis of Financial Condition and Results of Operations and
Risk Factors sections of the Companys 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 Companys website at
www.pebblebrookhotels.com and at www.sec.gov
.
All information in this release is as of June 22, 2011. The Company undertakes no duty to
update the statements in this release to conform the statements to actual results or changes in the
Companys 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 or
Katie Meyer, Vice President of Public Relations, Denihan Hospitality Group (646) 424-2614
Katie Meyer, Vice President of Public Relations, Denihan Hospitality Group (646) 424-2614
For additional information or to receive press releases via email, please visit our website at
www.pebblebrookhotels.com
www.pebblebrookhotels.com
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