the manhattan collection

Transcription

1 Property Information: Acquisition Price: $908.0M (1) ($524K per room) Location: New York, NY Acquired: July 29, 2011 Rooms: 6 hotels comprising 1,7 (2) rooms and suites Type: Upper Upscale and Luxury (1) $908M represents total purchase price of the portfolio. PEB s share of the total purchase price is 49% of $908M. (2) Room count does not include the additional 41 rooms that will be added to the. Historic Performance and Valuation: Discount to Replacement Cost () : 5% 2011 EBITDA () : $49.0M 2012 EBITDA () : $59.0M 2011 EBITDA Yield () : 5.% 2012 EBITDA Yield () : 6.% () Estimated discount to replacement cost at time of acquisition; EBITDA based on previously disclosed hotel earnings before interest, taxes, depreciation and amortization ( EBITDA ) and capital investments; EBITDA Yield Includes all capital investments made by Pebblebrook to as of year-end 2011 and year-end Market and Portfolio Highlights: Manhattan has the highest hotel occupancy rate in the country Trailing-twelve month Manhattan Tracts occupancy at record level of 86.7% Proven history of double digit RevPAR growth in recovery cycles Largest U.S. beneficiary of secular global growth in international travel Financial center of the world and international gateway city Estimated supply growth of 7-8% in 2014 to be absorbed into market the benjamin Manhattan experienced a compounded annual RevPAR growth rate of 16.7% during the previous recovery period from 200 to 2007 The Midtown hotel market is an international 24/7 market that attracts corporate transient and group travelers during the week and leisure guests during the weekends, summer and holidays The six hotels acquired are all well located throughout Midtown, have large guestrooms and suites (average 444 square feet) and all have been well maintained in a boutique style $10 $210 $110 Manhattan Tracts Operating Performance ADR RevPAR Occupancy Prior Peak Occupancy ADR CAGR: 1.9% RevPAR CAGR: 2.2% Source: Smith Travel Research * Represents TTM peak occupancy for the Manhattan tractsin the prior cycle. Denihan Hospitality Group: Experienced hotel operator in New York City for almost 50 years Focused in the upper upscale and luxury hotel segments with an emphasis on high-style boutique oriented hotels and an excellent track record of owning and managing independent hotels in New York, Washington, D.C., Miami and Chicago The Denihan Hospitality Group currently owns and/or operates 15 hotels throughout the U.S. Investment Highlights: Strengths Excellent Midtown locations High cost of development market Large guestrooms and suites (average 444 square feet) Retail rents over $2.4M annually, representing $48.0M ($27.7K / key) in value Strong upscale and luxury market positioning Well-maintained, high quality assets Recent and current major renovations Diversification benefit of 6 hotels all in Midtown locations 82% 72% Opportunities Total number of rooms increased 5% in 2011 from prior peak in 2007; 2012 portfolio NOI off 2%, and ADR off $2 from prior peak Renovation and rooms additions at Affinia Manhattan (92 rooms) and (41 rooms), as well as potential for future rooms additions at The Benjamin and Affinia Gardens Greater brand awareness Improved cash flow through best practices and Pebblebrook asset management Significant ADR growth expected Joint Venture Overview: Pebblebrook Hotel Trust invested $15.6M for a 49% economic interest in the $908M joint venture and affiliates of Denihan retained a 51% interest All decisions are joint and require consent of both partners 5 of the 6 hotels (Affinia Manhattan, Affinia Shelburne, Affinia Dumont, Affinia Gardens and The Benjamin) are currently subject to a $410.0M interest-only, non-recourse first mortgage at an interest rate of.67%. In addition to this financing, Pebblebrook provided $50M of preferred capital to the Manhattan Collection; the preferred capital has a 5 and half year term, an annual coupon rate of 9.75% and is prepayable at any time by the joint venture Affinia Dumont is currently subject to a $50.0M interest-only, non-recourse first mortgage at an interest rate of.14% Portfolio: affinia 50 (post-renovation rendering) Hotels Map Year Recent Rooms Marker Opened Renovation Affinia Manhattan Affinia Shelburne Affinia Dumont Affinia Gardens The Benjamin Total 1,7 The Benjamin 50 th and Lexington assumptions and expectations of future performance, taking into account all information currently available to us. Actual results could differ materially from the forward-looking statements made on this summary information sheet. When we use the words "projected," "expected, planned and "estimated" or other similar expressions, we are identifying forward-looking statements. The forward-looking statements on this summary information sheet are subject to the safe harbor of the Private Securities Litigation Reform Act of All information on this sheet is as of May 8,201. We undertake no duty to update the information to conform to actual results or changes in our expectations. For additional information, please visit our website 1 Affinia Manhattan 1 st and 7 th Affinia Gardens 64 th b/w 2 nd and rd th and rd Affinia Shelburne 7 th and Lexington Affinia Dumont 4 th b/w Lexington and rd 1

2 Affinia Manhattan 618 guest rooms and suites, including Terrace Suites with grand views of Midtown Average room size: 88 square feet Located across from Madison Square Garden, Penn Station, Macy s Herald Square and steps away from Times Square and the Garment District Underwent a $24M ($9K / key) comprehensive renovation and reconfiguration in 2011, increasing the room count to 618 Affinia Shelburne 25 guest rooms and suites, featuring contemporary décor and modern in-room technology Average room size: 408 square feet Located in Manhattan s Murray Hill neighborhood with convenient access to the United Nations, the Empire State Building, Chrysler Building and Grand Central Terminal Completed $27M ($8K / key) comprehensive renovation in 2009 Affinia Dumont 242 suites with full kitchens, including a VIP fitness suite with steam room and private exercise studio Average room size: 478 square feet Located on New York s 4 th Street with inspiring views of the Empire State Building, Chrysler Building and East River Complete lobby renovation completed in st Street and 7 th Avenue Occupies the original Governor Clinton Hotel, built in 1929 Niles New York City Bar and Restaurant (leased) offers an all day sleek setting for continental cuisine Over 24,000 square feet of leased retail space Over 10,500 square feet of versatile meeting space, including a Grand Ballroom and 8 meeting rooms 7 th Street and Lexington Avenue Rare View (leased) is a popular rooftop bar with stunning city views Rare Bar & Grill (leased) open for breakfast, lunch and dinner 1,725 square foot conference space Over 4,000 square feet of leased retail space Fitness Center 4 th Street and Lexington Avenue The Barking Dog restaurant (leased) features comfort food and American favorites for breakfast, lunch, dinner and brunch Oasis Day Spa is the heart of the hotel s wellness experience, featuring a wide variety of upscale massage, skincare and salon treatments 1,100 square foot meeting room Over 2,00 square feet of leased retail space affinia 50 (pre-renovation) 210 spacious guest rooms and suites (all with full kitchens), including several with private terrace and views of the city Average room size: 508 square feet Located in the heart of Midtown, just blocks from Madison and Fifth Avenue shops, United Nations and Rockefeller Plaza Affinia Gardens 129 large suites, featuring full kitchens Average room size: 607 square feet Located in Midtown east side, just four blocks from Central Park Reopened in Q 2005 following a $7.7M ($60K / key) renovation and repositioning Complete lobby, entry and exterior renovation completed in th Street and rd Avenue Currently undergoing an $18M-$20M comprehensive renovation and reconfiguration, increasing the room count by 41 guest rooms Club Room on 2 nd floor is a popular escape for guests to relax, work and socialize Over 7,500 square feet of leased retail space Fitness Center 64 th Street and rd Avenue Tea Bar and tranquility amenities, including gourmet coffee 24-hour serenity lounge located in lobby affinia 50 (post-renovation rendering) The Benjamin 209 luxury guest rooms, including 97 Executive Suites Average room size: 458 square feet Located in Midtown on the corner of 50 th Street and Lexington Avenue $.0M (14.4K / key) rooms refurbishment planned for Q 201 Wellness Spa features healing massages and rejuvenating skin treatments 50 th Street and Lexington Avenue Features the,000 square foot National Bar and Dining Rooms Restaurant, overseen by Food Network Iron Chef Geoffrey Zakarian; the restaurant opened in Q and was recently honored with an award from the James Beard Foundation Over 2,000 square feet of meeting space featuring video conferencing and high-speed web access All Affinia hotels feature the six-choice Dream Pillow Menu, Experience Kits and soothing in-room treatments from SPAffinia 2

3 Affinia Manhattan Before Renovation affinia manhattan lobby affinia manhattan lobby affinia manhattan ballroom

4 Affinia Manhattan Post-Renovation Renderings affinia manhattan lobby rendering affinia manhattan side lobbyentrance rendering affinia manhattan meeting room rendering

5 Before Renovation affinia 50 lobby affinia 50 2 nd floor affinia 50 club room affinia 50 club room affinia 50 guest room affinia 50 guest living room

6 Post Renovation Lobby Renderings affinia 50 lobby rendering affinia 50 lobby rendering

7 Post Renovation Public Areas Renderings affinia 50 club room rendering affinia 50 2 nd floor rendering affinia 50 club room rendering

8 Model Room affinia 50 model guest room affinia 50 model guest bathroom affinia 50 model guest room affinia 50 model guest room

9 The Benjamin Before Refurbishment the benjamin guest room the benjamin guest living room the benjamin guest living room

10 The Benjamin Post-Refurbishment Renderings the benjamin guest room rendering the benjamin penthouse suite guest living room rendering the benjamin guest living room rendering