BETHESDA, Md. Pebblebrook Hotel Trust (NYSE:PEB): REOPENING & REDEVELOPMENT OF HOTELS AND RESORTS

24 hotels and resorts currently open, approximately half of the Company's portfolio, and expecting to reopen an additional 5 hotels by mid-August, for a total of 29 open hotels and resorts

All 8 resorts are experiencing a healthy recovery in occupancy and EBITDA and in total, they are achieving average rates at a premium to 2019

Completed 8 redevelopment projects; 40 of 53 hotels and resorts have undergone transformational redevelopments or comprehensive renovations in the last 5 years

AVERAGE MONTHLY CASH BURN

Monthly cash burn at the Company's hotels continues to be reduced as additional properties reopen and operating performance ramps up

Monthly hotel portfolio cash burn now running at $9 to $12 million; a $6 million reduction compared to the Company's early May midpoint estimate

Total monthly corporate cash burn now running at $19 to $24 million; a $6 million decrease compared to the Company's early May midpoint estimate

BALANCE SHEET & LIQUIDITY

As of June 30, 2020, cash on hand of $352.8 million and liquidity of $606.0 million, which includes $253.2 million available on the $650 million credit facility

Net debt to depreciated book value at the end of Q2 2020: 37%

All financial covenants eliminated through Q1 2021, with less restrictive financial covenants established until Q3 2022

No meaningful debt maturities until November 2022

2020 OUTLOOK

Given the uncertainties related to the pandemic and its impact on travel, and variable government restrictions, the Company is unable to provide a 2020 Outlook at this time

(1)	See tables later in this press release for a description of Same-Property information and reconciliations from net income (loss) to non-GAAP financial measures.

'Demand for hotels and travel in general clearly bottomed in mid-April. Throughout the rest of the quarter, hotel industry demand gradually and consistently improved each month as states and cities reopened and began to ease restrictive mandates. While the recent uptick in COVID cases and the resulting pullback of city reopenings have caused demand growth to flatten out, we're still seeing an uptick in the leisure segment, benefitting our drive-to resorts, which have been experiencing a healthy recovery in operating performance that has generally improved each week. Encouragingly, our resorts have been generating average rates above the prior-year period, and hotel demand in our urban markets has been gradually recovering as well. As a result, we have reopened an additional 10 urban hotels and expect to reopen another 5 in the next several weeks. All of this positive progress, albeit slow and gradual, has enabled us to materially reduce our monthly cash burn and improve our liquidity during this unprecedented period. We're also excited to announce the successful completion of the transformational redevelopments of Hotel Zena Washington DC, Le Parc West Hollywood, San Diego Mission Bay Resort, Viceroy Hotel Washington DC, Chaminade Resort in Santa Cruz, and Viceroy Santa Monica Hotel. These comprehensive redevelopments will allow these properties to achieve much better performance as they ramp up over the next few years.'

Jon E. Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust

Second Quarter and Year-to-Date Highlights

Notes:

See details at: http://investor.pebblebrookhotels.com/file/Index?KeyFile=404805772

These historical hotel operating results include information for all of the hotels the Company owned as of July 30, 2020 as if they were owned as of January 1, 2019. These historical results exclude Union Station Nasvhille, Autograph Collection, in all periods due to its sale completed on July 29, 2020. The information above does not reflect the Company's corporate general and administrative expense, interest expense, property acquisition costs, depreciation and amortization, taxes and other expenses. Any differences are a result of rounding.

The information above has not been audited and is presented only for comparison purposes.

Raymond D. Martz, Chief Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330

Source: Pebblebrook Hotel Trust

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