Pebblebrook Hotel Trust : June 2021 NAREIT Update

REITweek: Investor Conference Update

June 8-10, 2021

1

Operating Trends

Improving

• Operating trends are improving each week
• Leisure demand continues to show robust growth; business travel is in the early stages of its recovery
• Expect to achieve positive Adjusted EBITDAre in Q2 2021
• Net proceeds from recent property sales and preferred equity offering to be allocated for acquisitions
• Half of the portfolio has recently been or is currently being redeveloped and transformed to a higher quality
• These significant investments, most of which have already been made, are expected to drive a higher EBITDA growth rate as the pandemic ends and we enter a new business cycle over the next several years

Returning to Profitability(1)

• Along with robust leisure travel, business travel is also contributing to positive EBITDA, and this trend is anticipated to accelerate as companies adopt less restrictive travel policies and return to the office

Month	RevPAR	Total	Hotel
(2021)	Var to '19	Revenue ($M)	EBITDA ($M)
Jan	(80%)	$19.4	($11.1)
Feb	(74%)	$26.0	($5.8)
Mar	(68%)	$38.1	$1.4
Apr (E)	(67%)	$43.1	$3.0
May (E)	(61%)-(62%)	$52-$53	$5-$6

Balance Sheet

and Liquidity(2,3,4)

• Liquidity: $950M (as of May 31)
• No material debt maturities until Q4 2022
• 100% of debt is unsecured
• Net Debt to Book Value: approx. 37%, or 23% if convertible bonds treated as equity

$747.6	$750.0
	$510.0
$272.2
$4.8	$2.4

2021 2022 2023 2024 2025 2026

Convertible Notes

Term Loans & Private Placement

$s above in millions

Leisure Demand Strong,

Business Travel Returning

• Leisure demand continues to drive the industry's recovery, but encouraging signs of increased weekday demand from the business transient segment have emerged
• Business group leads, Requests For Proposal ("RFPs"), and bookings for later this year have increased substantially in the last 60 days

60%		Total Portfolio Occupancy: Weekday
50%
40%													30%
30%										26%
			15%		21%
20%	11%
10%
0%
January	February	March	April (E)	May (E)

			Total Portfolio Occupancy: Weekend
60%													52%
50%
						36%		43%
40%				28%
30%	17%
20%
10%
0%
January	February	March	April (E)	May (E)

60%				Total Portfolio Occupancy
50%													37%
40%
									31%
30%				19%		25%
20%	13%
10%
0%
January	February	March	April (E)	May (E)

Capital Re-Investments

Recently Completed and Current Redevelopments and

Transformations to Generate Outsized Returns

Year	# of Hotels Redeveloped,	Total Amount
Transformed, or Renovated	Invested
2018-2019	14	$216M
2020	8	$104M
2021	4	$57M
Total	26	$377M

• Above totals do not include all currently contemplated and potential 2021/2022 investment projects that may begin later this year

Historical Segmentation

and Performance(1)

								Leisure Transient
	25%							Corporate Transient
		40%					Group
					Current Portfolio 2019 Run Rate
	35%				Statistics
				Total Revenues		$1.4B
					Total Hotel EBITDA		$463M
	March 2021	April 2021 (E)	May 2021 (E)
	Occ	ADR	RevPAR	Occ	ADR	RevPAR	Occ	ADR	RevPAR
Resort	57%	$414	$236	64%	$378	$244		64%	$372	$240
Urban	29%	$161	$47	32%	$177	$57		35%	$197	$69
(open)
Total	25%	$245	$61	31%	$239	$74		37%	$242	$89
Portfolio

Note: EBITDA refers to non-GAAP Hotel EBITDA; see appendix for reconciliations of non-GAAP financial measures to Hotel Net Income (Loss).

1. Includes all hotels owned by Pebblebrook as of June 7, 2021; $s and % amounts for April and May are estimates.
2. Debt balances shown in millions; current as of May 21, 2021.
3. Maturity date of January 2023 assumes Pebblebrook chooses to exercise its two six-month options to extend debt maturity of the credit facility.
4. The Convertible Notes have an initial conversion rate of 39.2549 per $1,000 principal amount of the Notes (equivalent to a conversion price of approximately $25.47 per common share of Pebblebrook and a conversion premium of approximately 35.0% based on the closing price of $18.87 per common share on December 10, 2020).

REITweek: Investor Conference Update

June 8-10, 2021

2

hotel zena washington dc

laplaya beach resort & club

l'auberge del mar

viceroy washington dc

Capital Re-Investments Highlights

			Per				Addt'l Amenities
Hotel	Description	Amount(1)	Lobby	Rooms	F&B	& Sustainability
Key(2)
						Projects
		2018-2019 Renovations
San Diego Mission	Transformational			✓	✓	✓	✓
Luxury Redev. &	$32.0	$89.6
Bay Resort	Rebranding
Westin Copley	Comprehensive	$24.0	$29.9	✓	✓	✓	✓
Place, Boston	Renovation
Paradise Point	Guestroom	$24.0	$51.9		✓
Resort & Spa	Renovation
LaPlaya Beach	Transformational			✓	✓	✓	✓
Redev. & Luxury	$20.0	$105.8
Resort & Club
Repositioning
Mondrian Los	Upscaling			✓	✓	✓
Renovation & New	$19.5	$82.6
Angeles
Restaurant
Hotel Spero	Upscaling	$16.0	$67.8	✓	✓	✓	✓
Redevelopment
Chamberlain	Comprehensive			✓	✓	✓	✓
West Hollywood	$16.0	$139.1
Renovation
Hotel
Montrose West	Comprehensive	$16.0	$120.3	✓	✓	✓	✓
Hollywood	Renovation
W Boston	Guestroom	$10.0	$42.0		✓
Renovation
Hotel	Comprehensive			✓	✓	✓	✓
Harbor Court	Upscaling	$10.0	$76.3
	Renovation
Sofitel	Comprehensive	$10.0	$32.7		✓
Philadelphia	Rooms Renovation
Hotel Modera	Transformational			✓	✓	✓	✓
Portland →	Redevelopment &	$6.7	$38.5
Hotel Zags	Rebranding
	Comprehensive			✓	✓	✓
Heathman Hotel	Upscaling	$6.2	$41.1
	Renovation
Hotel Zelos San	Upscaling	$6.0	$29.7	✓	✓
Francisco	Renovation
2018-2019 Total	14 Projects	$216.4	$58.0

southernmost beach resort

Note:

1. Dollars in millions.
2. Dollars in thousands.

REITweek: Investor Conference Update

June 8-10, 2021

3

chaminade resort & spa

le parc suite hotel

san diego mission bay resort

viceroy santa monica hotel

Capital Re-Investments Highlights, Continued

			Per				Addt'l Amenities
Hotel	Description	Amount(1)	Lobby	Rooms	F&B	& Sustainability
Key(2)
						Projects
			2020 Renovations
Donovan Hotel → Transformational			✓	✓	✓	✓
Hotel Zena	Redevelopment	$25.0	$130.9
Washington DC	& Rebranding
Embassy Suites	Comprehensive				✓
San Diego Bay -	Guestroom	$18.0	$52.8
Downtown	Renovation
Westin San Diego	Guestroom &			✓	✓	✓
Public Area	$16.0	$35.6
Gaslamp Quarter
Renovation
Le Parc	Transformational			✓	✓	✓	✓
Upscaling	$12.5	$81.2
Suite Hotel
Redevelopment
Viceroy Santa	Comprehensive			✓		✓	✓
Public Area	$10.5	$62.1
Monica Hotel
Redevelopment
Chaminade	Transformational			✓		✓	✓
Redev. & Luxury	$9.0	$57.7
Resort & Spa
	Repositioning
Mason & Rook	Transformational			✓	✓	✓	✓
Hotel → Viceroy	Redevelopment	$8.0	$44.9
Washington DC	& Rebranding
The Marker	Upscaling			✓	✓	✓	✓
Key West	Renovation &	$5.0	$52.1
Harbor Resort	Repositioning
2020 Total	8 Projects	$104.0	$59.9
			2021 Renovations
Del Mar	Transformational			✓	✓	✓
L'Auberge	Luxury	$11.9	$98.3
	Redevelopment
Hotel Vitale →	Transformational			✓	✓	✓	✓
1 Hotel	Luxury Redev. &	$25.0	$125.0
San Francisco(3)	Rebranding(3)
Southernmost	Comprehensive				✓		✓
Guestroom	$15.0	$57.3
Beach Resort(3)
Renovation(3)
Grafton on Sunset	Transformational			✓	✓	✓	✓
→ Z Collection	Redev. &	$5.0	$46.3
Hotel(3)	Rebranding(3)
2021 Total	4 Projects	$56.9	$82.3
2018-2021 Total	26 Projects	$377.3	$61.3
2018-2021 Total
Excl'd Upcoming	23 Projects	$332.3	$59.5
Projects

the marker key west harbor resort

Note:

1. Dollars in millions.
2. Dollars in thousands.
3. Upcoming projects which have not yet commenced.

4

Appendix

Pebblebrook Hotel Trust

Total Property Portfolio

Reconciliation of Hotel Net Income to Hotel EBITDA and Hotel Net Operating Income Full Year 2019, January, February, March, April (estimate) and May (estimate) 2021 (Unaudited, in millions)

	For the twelve
	months ending		For the month		For the month		For the month		For the month		For the month
	December,		of January,		of February,		of March,		of April,		of May 2021 (E),
	2019	2021	2021	2021		2021 (E)		Low	High
Hotel net income	$255.7	($29.4)	($23.9)	($16.8)	($15.2)	($13.2)	($12.2)
Adjustment:
Depreciation and amortization	207.0	18.3	18.1	18.2	18.2	18.2	18.2
Hotel EBITDA	$462.7	($11.1)	($5.8)	$1.4	$3.0	$5.0	$6.0
Adjustment:
Capital reserve	(57.2)	(0.7)	(1.1)	(1.5)	(1.7)	(2.1)	(2.1)
Hotel Net Operating Income	$405.5	($11.8)	($6.9)	($0.1)	$1.3	$2.9	$3.9

This presentation 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 hotels' results of operations determined in accordance with GAAP.

The Company has presented hotel EBITDA and hotel net operating income after capital reserves for the periods above 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 hotels' EBITDA and net operating income after capital reserves for the periods above should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the hotels' financial performance. The table above is a reconciliation of the hotels' EBITDA and net operating income after capital reserves calculations to net income in accordance with GAAP for the periods above. Any differences are a result of rounding.

This investor conference update contains certain "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "will," "to be," "anticipated," "until," "may," "estimate," "expect," "approximately," "continue," "assume" or other similar words or expressions. These forward-looking statements relate to Adjusted EBITDre, allocation of offering proceeds, demand recovery, expected liquidity and financial measures and operating statistics for April and May of 2021. 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 COVID-19 pandemic, the state of the U.S. economy and the supply of hotel properties, and other factors as are described in greater detail in the Company's filings with the U.S. Securities and Exchange Commission, including, without limitation, the Company's Annual Report on Form 10-K for the year ended December 31, 2020. 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.

All information in this investor conference update is as of June 7, 2021. The Company undertakes no duty to update the statements in this investor conference update to conform the statements to actual results or changes in the Company's expectations.