Pebblebrook Hotel Trust’s preliminary fourth-quarter and full-year 2022 results show a larger net loss compared to the company’s previous outlook.
The drop comes after the hotel real estate investment trust revised its outlook down in late December, citing the negative effects of Hurricane Nicole and weaker business and leisure demand in November.
In a news release, Pebblebrook reported that its preliminary fourth-quarter net loss will range between $39 million and $41 million. The company had previously projected a net loss of between $36 million to $40 million. For the full year, it expects a net loss of between $85 million and $87 million. The previous estimate was a net loss of between $81 million and $85 million.
However, the company’s adjusted earnings before interest, taxes, depreciation, amortization for real estate showed improvement over its outlook.
For the fourth-quarter, preliminary results show EBITDAre in a range of $56 million to $58 million, which is an increase from $52 million to $56 million in its prior outlook. The REIT’s preliminary full-year results show EBITDAre will range between $355 million and $357 million, up from its previous outlook range of $351 million to $355 million.
The company’s same-store revenue per available room for the fourth quarter and full year is on target with previous outlook at $174 and $193, respectively.
Pebblebrook also announced it has an agreement to sell The Heathman Hotel in Portland, Oregon, for $45 million to an undisclosed third party. The company expects the deal for the 151-room hotel to close in the first quarter of this year.
The Heathman Hotel is operated by Provenance Hotels, which sold its operating division to Pyramid Global Hospitality last year. The deal added the operations of 12 boutique hotels to Pyramid’s management portfolio.
In a separate deal, investment firm Gencom, of which Pyramid is an affiliate, and private real estate investment fund manager Corten acquired a 50% stake in the real estate of the eight hotels owned by Provenance. The remaining four, including the Heathman, are owned by other parties and managed by Provenance.