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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022
OR
    
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to              .
Commission File Number 001-34571
PEBBLEBROOK HOTEL TRUST
(Exact Name of Registrant as Specified in Its Charter)

Maryland27-1055421
(State of Incorporation or Organization)(I.R.S. Employer Identification No.)
4747 Bethesda Avenue, Suite 1100, Bethesda, Maryland
20814
(Address of Principal Executive Offices)(Zip Code)

(240)507-1300
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Shares, $0.01 par value per sharePEBNew York Stock Exchange
Series E Cumulative Redeemable Preferred Shares, $0.01 par valuePEB-PENew York Stock Exchange
Series F Cumulative Redeemable Preferred Shares, $0.01 par valuePEB-PFNew York Stock Exchange
Series G Cumulative Redeemable Preferred Shares, $0.01 par valuePEB-PGNew York Stock Exchange
Series H Cumulative Redeemable Preferred Shares, $0.01 par valuePEB-PHNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    ☑  Yes     No



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes      No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding at October 25, 2022
Common shares of beneficial interest ($0.01 par value per share)131,472,449




Pebblebrook Hotel Trust
TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION
Item 1.Financial Statements.
Consolidated Balance Sheets - September 30, 2022 (unaudited) and December 31, 2021
Consolidated Statements of Operations and Comprehensive Income (unaudited) - Three and nine months ended September 30, 2022 and 2021
Consolidated Statements of Equity (unaudited) - Three and nine months ended September 30, 2022 and 2021
Consolidated Statements of Cash Flows (unaudited) - Nine months ended September 30, 2022 and 2021
Notes to Consolidated Financial Statements (unaudited)
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3.Quantitative and Qualitative Disclosures About Market Risk.
Item 4.Controls and Procedures.
PART II. OTHER INFORMATION
Item 1.Legal Proceedings.
Item 1A.Risk Factors.
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3.Defaults Upon Senior Securities.
Item 4.Mine Safety Disclosures.
Item 5.Other Information.
Item 6.Exhibits.
2


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.

Pebblebrook Hotel Trust
Consolidated Balance Sheets
(in thousands, except share and per-share data)
September 30, 2022December 31, 2021
 (Unaudited) 
ASSETS
Investment in hotel properties, net$5,964,823 $6,079,333 
Cash and cash equivalents190,750 58,518 
Restricted cash19,371 33,729 
Hotel receivables (net of allowance for doubtful accounts of $391 and $1,142, respectively)
66,759 37,045 
Prepaid expenses and other assets94,683 52,565 
Total assets$6,336,386 $6,261,190 
LIABILITIES AND EQUITY
Debt$2,418,770 $2,441,888 
Accounts payable, accrued expenses and other liabilities278,093 250,584 
Lease liabilities - operating leases320,323 319,426 
Deferred revenues72,808 69,064 
Accrued interest10,408 4,567 
Distribution payable12,559 11,756 
Total liabilities3,112,961 3,097,285 
Commitments and contingencies (Note 11)
Shareholders’ equity:
Preferred shares of beneficial interest, $.01 par value (liquidation preference $740,000 at September 30, 2022 and December 31, 2021), 100,000,000 shares authorized; 29,600,000 shares issued and outstanding at September 30, 2022 and December 31, 2021
296 296 
Common shares of beneficial interest, $.01 par value, 500,000,000 shares authorized; 130,905,132 shares issued and outstanding at September 30, 2022 and 130,813,750 shares issued and outstanding at December 31, 2021
1,309 1,308 
Additional paid-in capital4,273,603 4,268,042 
Accumulated other comprehensive income (loss)38,796 (19,442)
Distributions in excess of retained earnings(1,178,289)(1,094,023)
Total shareholders’ equity3,135,715 3,156,181 
Non-controlling interests87,710 7,724 
Total equity3,223,425 3,163,905 
Total liabilities and equity$6,336,386 $6,261,190 

The accompanying notes are an integral part of these financial statements.
3

Pebblebrook Hotel Trust
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except share and per-share data)
(Unaudited)
 For the three months ended September 30,For the nine months ended September 30,
 2022202120222021
Revenues:
Room$277,971 $162,548 $707,997 $324,614 
Food and beverage98,080 48,900 261,228 95,223 
Other operating40,642 27,362 103,060 65,930 
Total revenues416,693 238,810 1,072,285 485,767 
Expenses:
Hotel operating expenses:
Room66,637 40,504 167,102 85,777 
Food and beverage69,296 34,925 179,859 68,121 
Other direct and indirect115,589 72,622 307,317 174,069 
Total hotel operating expenses251,522 148,051 654,278 327,967 
Depreciation and amortization60,372 55,492 179,746 165,636 
Real estate taxes, personal property taxes, property insurance, and ground rent34,641 26,204 98,118 84,230 
General and administrative10,281 9,433 29,675 26,803 
Impairment loss12,865  86,119 14,856 
Gain on sale of hotel properties(6,194)(171)(6,194)(64,729)
Other operating expenses989 431 4,045 1,514 
Total operating expenses364,476 239,440 1,045,787 556,277 
Operating income (loss)52,217 (630)26,498 (70,510)
Interest expense(25,020)(22,930)(70,753)(73,065)
Other123 27 156 85 
Income (loss) before income taxes27,320 (23,533)(44,099)(143,490)
Income tax (expense) benefit(1,015)(5)(1,015)(60)
Net income (loss)26,305 (23,538)(45,114)(143,550)
Net income (loss) attributable to non-controlling interests1,237 (125)1,359 (1,085)
Net income (loss) attributable to the Company25,068 (23,413)(46,473)(142,465)
Distributions to preferred shareholders(11,344)(12,528)(34,031)(30,761)
Issuance costs of redeemed preferred shares (8,043) (8,043)
Net income (loss) attributable to common shareholders$13,724 $(43,984)$(80,504)$(181,269)
Net income (loss) per share available to common shareholders, basic$0.10 $(0.34)$(0.62)$(1.39)
Net income (loss) per share available to common shareholders, diluted$0.10 $(0.34)$(0.62)$(1.39)
Weighted-average number of common shares, basic130,905,132 130,813,750 130,904,772 130,801,187 
Weighted-average number of common shares, diluted131,149,783 130,813,750 130,904,772 130,801,187 


4

Pebblebrook Hotel Trust
Consolidated Statements of Operations and Comprehensive Income - Continued
(in thousands, except share and per-share data)
(Unaudited)
For the three months ended September 30,For the nine months ended September 30,
2022202120222021
Comprehensive Income:
Net income (loss)$26,305 $(23,538)$(45,114)$(143,550)
Other comprehensive income (loss):
Change in fair value of derivative instruments16,487 (323)53,184 7,103 
Amounts reclassified from other comprehensive income(1,337)6,494 5,441 19,319 
Comprehensive income (loss)41,455 (17,367)13,511 (117,128)
Comprehensive income (loss) attributable to non-controlling interests1,339 (84)1,746 (912)
Comprehensive income (loss) attributable to the Company$40,116 $(17,283)$11,765 $(116,216)

The accompanying notes are an integral part of these financial statements.
5

Pebblebrook Hotel Trust
Consolidated Statements of Equity
(in thousands, except share data)
(Unaudited)
For the three months ended September 30, 2022
Preferred SharesCommon SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Distributions in Excess of Retained EarningsTotal Shareholders' EquityNon-Controlling InterestsTotal Equity
SharesAmountSharesAmount
Balance at June 30, 2022
29,600,000$296 130,905,132 $1,309 $4,271,169 $23,748 $(1,190,693)$3,105,829 $86,847 $3,192,676 
Issuance of shares, net of offering costs— — — (48)— — (48)— (48)
Issuance of operating partnership units— — — — — — —   
Share-based compensation— — — 2,482 — — 2,482 699 3,181 
Distributions on common shares/units— — — — — (1,320)(1,320)(11)(1,331)
Distributions on preferred shares/units— — — — — (11,344)(11,344)(1,164)(12,508)
Other comprehensive income (loss):
Change in fair value of derivative instruments— — — — 16,385 — 16,385 102 16,487 
Amounts reclassified from other comprehensive income— — — — (1,337)— (1,337)— (1,337)
Net income (loss)— — — — — 25,068 25,068 1,237 26,305 
Balance at September 30, 2022
29,600,000$296 130,905,132$1,309 $4,273,603 $38,796 $(1,178,289)$3,135,715 $87,710 $3,223,425 


6



Pebblebrook Hotel Trust
Consolidated Statements of Equity - Continued
(in thousands, except share data)
(Unaudited)
For the three months ended September 30, 2021
Preferred SharesCommon SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Distributions in Excess of Retained EarningsTotal Shareholders' EquityNon-Controlling InterestsTotal Equity
SharesAmountSharesAmount
Balance at June 30, 2021
29,600,000 $296 130,813,750 $1,308 $4,263,473 $(39,820)$(993,654)$3,231,603 $7,043 $3,238,646 
Redemption of preferred shares(10,000,000)(100)— — (241,857)— (8,043)(250,000)— (250,000)
Issuance of shares, net of offering costs10,000,000 100 — — 241,676 — — 241,776 — 241,776 
Share-based compensation— — — — 2,403 — — 2,403 697 3,100 
Distributions on common shares/units— — — — — — (1,317)(1,317)(8)(1,325)
Distributions on preferred shares— — — — — — (12,528)(12,528)— (12,528)
Other adjustment— — — — — 393 — 393 (393) 
Other comprehensive income (loss):
Change in fair value of derivative instruments— — — — — (496)— (496)173 (323)
Amounts reclassified from other comprehensive income— — — — — 6,494 — 6,494 — 6,494 
Net income (loss)— — — — — — (23,413)(23,413)(125)(23,538)
Balance at September 30, 2021
29,600,000 $296 130,813,750 $1,308 $4,265,695 $(33,429)$(1,038,955)$3,194,915 $7,387 $3,202,302 



7

Pebblebrook Hotel Trust
Consolidated Statements of Equity - Continued
(in thousands, except share data)
(Unaudited)
For the nine months ended September 30, 2022
Preferred SharesCommon SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Distributions in Excess of Retained EarningsTotal Shareholders' EquityNon-Controlling InterestsTotal Equity
SharesAmountSharesAmount
Balance at December 31, 2021
29,600,000$296 130,813,750 $1,308 $4,268,042 $(19,442)$(1,094,023)$3,156,181 $7,724 $3,163,905 
Issuance of shares, net of offering costs— — — (123)— — (123)— (123)
Issuance of operating partnership units— — — — — — — 78,000 78,000 
Issuance of common shares for Board of Trustees compensation— 33,866 1 737 — — 738 — 738 
Repurchase of common shares— (49,787)(1)(1,112)— — (1,113)— (1,113)
Share-based compensation— 107,303 1 6,059 — — 6,060 2,095 8,155 
Distributions on common shares/units— — — — — (3,762)(3,762)(44)(3,806)
Distributions on preferred shares/units— — — — — (34,031)(34,031)(1,811)(35,842)
Other comprehensive income (loss):
Change in fair value of derivative instruments— — — — 52,797 — 52,797 387 53,184 
Amounts reclassified from other comprehensive income— — — — 5,441 — 5,441 — 5,441 
Net income (loss)— — — — — (46,473)(46,473)1,359 (45,114)
Balance at September 30, 2022
29,600,000$296 130,905,132$1,309 $4,273,603 $38,796 $(1,178,289)$3,135,715 $87,710 $3,223,425 




8



Pebblebrook Hotel Trust
Consolidated Statements of Equity - Continued
(in thousands, except share data)
(Unaudited)
For the nine months ended September 30, 2021
Preferred SharesCommon SharesAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Distributions in Excess of Retained EarningsTotal Shareholders' EquityNon-Controlling InterestsTotal Equity
SharesAmountSharesAmount
Balance at December 31, 2020
20,400,000 $204 130,673,300 $1,307 $4,169,870 $(60,071)$(853,973)$3,257,337 $6,989 $3,264,326 
Redemption of preferred shares(10,000,000)(100)— — (241,857)— (8,043)(250,000)— (250,000)
Issuance of shares, net of offering costs19,200,000 192 — — 463,914 — — 464,106 — 464,106 
Issuance of common shares for Board of Trustees compensation— — 27,711 1 515 — — 516 — 516 
Repurchase of common shares— — (38,310)(1)(719)— — (720)— (720)
Share-based compensation— — 151,049 1 8,046 — — 8,047 1,744 9,791 
Distributions on common shares/units— — — — — — (3,713)(3,713)(41)(3,754)
Distributions on preferred shares— — — — — — (30,761)(30,761)— (30,761)
Cumulative effect adjustment from adoption of new accounting standard— — — — (113,099)— — (113,099)— (113,099)
Purchases of capped calls in connection with convertible senior notes— — — — (20,975)— — (20,975)— (20,975)
Other adjustment— — — — — 393 — 393 (393) 
Other comprehensive income (loss):
Change in fair value of derivative instruments— — — — — 6,930 — 6,930 173 7,103 
Amounts reclassified from other comprehensive income— — — — — 19,319 — 19,319 — 19,319 
Net income (loss)— — — — — — (142,465)(142,465)(1,085)(143,550)
Balance at September 30, 2021
29,600,000 $296 130,813,750 $1,308 $4,265,695 $(33,429)$(1,038,955)$3,194,915 $7,387 $3,202,302 

The accompanying notes are an integral part of these financial statements.
9

Pebblebrook Hotel Trust
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
 For the nine months ended September 30,
 20222021
Operating activities:
Net income (loss)$(45,114)$(143,550)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization179,746 165,636 
Share-based compensation8,155 8,345 
Amortization of deferred financing costs, non-cash interest and other amortization9,961 12,668 
Gain on sale of hotel properties(6,194)(64,729)
Impairment loss86,119 14,856 
Non-cash ground rent7,467 4,563 
Other adjustments(3,914)(214)
Changes in assets and liabilities:
Hotel receivables(29,243)(21,657)
Prepaid expenses and other assets(5,297)(540)
Accounts payable and accrued expenses50,280 57,685 
Deferred revenues2,447 11,190 
Net cash provided by (used in) operating activities254,413 44,253 
Investing activities:
Improvements and additions to hotel properties(68,266)(52,778)
Proceeds from sales of hotel properties248,908 255,927 
Acquisition of hotel properties(247,163)(190,968)
Deposits on hotel properties (1,020)
Other investing activities(111)(96)
Net cash provided by (used in) investing activities(66,632)11,065 
Financing activities:
Gross proceeds from issuance of preferred shares 480,000 
Payment of offering costs — common and preferred shares(123)(15,894)
Payment of deferred financing costs(96)(10,082)
Borrowings under revolving credit facilities180,000  
Repayments under revolving credit facilities(180,000)(40,000)
Proceeds from debt 268,599 
Repayments of debt(27,740)(388,000)
Purchases of capped calls for convertible senior notes (20,975)
Repurchases of common shares(1,113)(720)
Redemption of preferred shares (250,000)
Distributions — common shares/units(3,968)(3,957)
Distributions — preferred shares/units(34,859)(26,049)
Repayments of refundable membership deposits(2,008)(1,872)
Net cash provided by (used in) financing activities(69,907)(8,950)
Net change in cash and cash equivalents and restricted cash117,874 46,368 
Cash and cash equivalents and restricted cash, beginning of year92,247 136,300 
Cash and cash equivalents and restricted cash, end of period$210,121 $182,668 

The accompanying notes are an integral part of these financial statements.
10


PEBBLEBROOK HOTEL TRUST
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Organization
Pebblebrook Hotel Trust (the "Company") is an internally managed hotel investment company, formed as a Maryland real estate investment trust in October 2009 to opportunistically acquire and invest in hotel properties located primarily in major United States cities and resort properties located near our primary target urban markets and select destination resort markets, with an emphasis on major gateway coastal markets.
As of September 30, 2022, the Company owned 51 hotels with a total of 12,756 guest rooms. The hotel properties are located in: Boston, Massachusetts; Chicago, Illinois; Hollywood, Florida; Jekyll Island, Georgia; Key West, Florida; Miami (Coral Gables), Florida; Los Angeles, California (Beverly Hills, Santa Monica, and West Hollywood); Naples, Florida; Newport, Rhode Island; Portland, Oregon; San Diego, California; San Francisco, California; Santa Cruz, California; Seattle, Washington; Stevenson, Washington; and Washington, D.C.
Substantially all of the Company’s assets are held by, and all of the Company's operations are conducted through, Pebblebrook Hotel, L.P. (the "Operating Partnership"). The Company is the sole general partner of the Operating Partnership. As of September 30, 2022, the Company owned 99.3% of the common limited partnership units issued by the Operating Partnership ("common units"). The remaining 0.7% of the common units are owned by the other limited partners of the Operating Partnership. For the Company to maintain its qualification as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"), it cannot operate the hotels it owns. Therefore, the Operating Partnership and its subsidiaries lease the hotel properties to subsidiaries of Pebblebrook Hotel Lessee, Inc. (collectively with its subsidiaries, "PHL"), a taxable REIT subsidiary ("TRS"), which in turn engage third-party eligible independent contractors to manage the hotels. PHL is consolidated into the Company’s financial statements.
COVID-19 Update
The COVID-19 pandemic, which began in early 2020, has had a significant negative impact on the Company's operations and financial results and is expected to continue to have a negative impact on the hotel industry and the Company's results of operations, financial position and cash flows for the remainder of 2022. Results improved in 2021 and have continued to improve through the first nine months of 2022. The Company exited its debt covenant waiver period under its credit facilities as of the end of the second quarter of 2022, and is in compliance with the covenants in the credit facility agreements. There remains significant uncertainty regarding the trends and outlook as a result of new variants and individual and government responses.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited interim consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and in conformity with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) applicable to interim financial information. As such, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. These unaudited consolidated financial statements include all adjustments considered necessary for a fair presentation of the consolidated balance sheets, consolidated statements of operations and comprehensive income, consolidated statements of equity and consolidated statements of cash flows for the periods presented. Interim results are not necessarily indicative of full-year performance, as a result of the impact of seasonal and other short-term variations and the acquisitions and or dispositions of hotel properties. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
The Company and its subsidiaries are separate legal entities and maintain records and books of accounts separate and apart from each other. The consolidated financial statements include all of the accounts of the Company and its subsidiaries and are presented in accordance with U.S. GAAP. All significant intercompany balances and transactions have been eliminated in consolidation.
Certain reclassifications have been made to the prior period's financial statements to conform to the current year presentation.
11

Use of Estimates
The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses. These estimates are prepared using management’s best judgment after considering past, current and expected events and economic conditions. Actual results could differ from these estimates.
Risks and Uncertainties
The state of the overall economy can significantly impact the hotels' operational performance and thus the Company's financial position. As discussed in Note 1. Organization, the COVID-19 pandemic has significantly impacted the hotels' operational performance. There has been a significant recovery in travel, however, the emergence of new variant strains or other factors that may impact travel demand may impact the Company's cash flow and ability to service debt or meet other financial obligations.
New Accounting Pronouncements
Reference Rate Reform
In March 2020 and January 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and ASU 2021-01, Reference Rate Reform (Topic 848), respectively. ASU 2020-04 and ASU 2021-01 provide optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. The guidance in ASU 2020-04 and ASU 2021-01 was effective upon issuance and, once adopted, may be applied prospectively to contract modifications and hedging relationships through December 31, 2022.
In 2020, the Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company will continue to evaluate the impact of the adoption of ASU 2020-04 and ASU 2021-01 on its consolidated financial statements and disclosures.
Business Combinations
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the recognition of an acquired contract liability and to payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in ASU 2021-08 require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts.
ASU 2021-08 is effective for fiscal years beginning after December 15, 2022 and early adoption is permitted. While the Company is continuing to assess the timing of adoption and the potential impacts of ASU 2021-08, it does not expect ASU 2021-08 to have a material effect on its consolidated financial statements and disclosures.
Note 3. Acquisition and Disposition of Hotel Properties
Acquisitions
On May 11, 2022, the Company acquired the 119-room Inn on Fifth in Naples, Florida for $156.0 million, excluding prorations and transactions costs. This transaction was funded with cash on hand, the issuance of 16,291 common units of limited partnership interest in the Operating Partnership and 3,104,400 preferred units of the Operating Partnership designated as 6.0% Series Z Preferred Units.
On June 23, 2022, the Company acquired the 257-room Newport Harbor Island Resort (formerly Gurney's Newport Resort & Marina) in Newport, Rhode Island for $174.0 million, using cash on hand and proceeds from its senior unsecured revolving credit facility. The property was acquired as part of a reverse 1031 Exchange in which the Company engaged a qualified intermediary to establish a trust to hold the property pending completion of the sale of the subject property or properties related to the reverse 1031 Exchange. The trust was deemed to be a variable interest entity (VIE) for which the Company is the primary beneficiary, and