BETHESDA, Md.–(BUSINESS WIRE)–$PEB #PEB–Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) today announced that
it executed a contract to sell the 132-room Hotel Amarano Burbank in Los
Angeles, California for approximately $72.9 million to a third party.

The contracted sale price reflects a 15.8x EBITDA multiple and a 5.7%
net operating income capitalization rate (after an assumed annual
capital reserve of 4.0% of total hotel revenues) based on the hotel’s
operating performance for 2018. Based on the trailing 12-month period
ended March 2019, the contracted sales price reflects a 16.9x EBITDA
multiple and a 5.3% net operating income capitalization rate (after an
assumed annual capital reserve of 4.0% of total hotel revenues). Both
the EBITDA multiples and net operating income capitalization rates are
adjusted for the estimated annualized impact of real estate taxes for
California’s Proposition 13.

The sale of Hotel Amarano Burbank is subject to normal closing
conditions, and the Company offers no assurances that this sale will be
completed on these terms, or at all. The Company is targeting to
complete the sale in the third quarter of 2019 and continues to be
encouraged with pricing levels and overall buyer interest in the
investment markets. Following the completion of the sale, the Company’s
estimated total net debt to trailing 12-month corporate EBITDA ratio
will decline to approximately 4.6 times.

The Company also continues to make progress on its strategic property
redevelopment plan and provided the following updates:

• Mason & Rook Hotel: On July 1, 2019, Viceroy Hotels &
  Resorts will become the third-party operator of this 178-room
  upper-upscale hotel in downtown Washington, D.C. Following the
  completion of a comprehensive property renovation and improvement
  program by early 2020, the hotel will become Viceroy Hotel Washington,
  D.C., a part of the luxury Viceroy Hotels & Resorts brand family; and
• Donovan Hotel: On July 1, 2019, Viceroy Hotel & Resorts will
  become the third-party operator of this 193-room upper-upscale hotel
  in downtown Washington, D.C. The Company plans to reconcept, redevelop
  and relaunch this hotel as part of the “Unofficial Z Collection” in
  2020.

“We are very excited to bring Viceroy to Washington, D.C. to manage
these two unique lifestyle hotels, which have so much upside potential,”
noted Jon E. Bortz, Chairman, President and Chief Executive Officer of
Pebblebrook Hotel Trust. “We expect that Viceroy will generate
significant long-term revenue improvement and increased operating
efficiencies at both of these hotels, given their extensive experience
operating urban lifestyle hotels including Viceroy Santa Monica, Hotel
Zeppelin, Hotel Zelos and Hotel Zetta for our company. In addition to
bringing the luxury Viceroy brand to D.C., we are also excited to create
our first ‘Unofficial Z Collection’ hotel on the east coast following
the comprehensive and transformative redevelopment and renovation of
Donovan Hotel.”

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate
investment trust (“REIT”) and the largest owner of urban and resort
lifestyle hotels in the United States. The Company owns 60 hotels,
totaling approximately 14,500 guest rooms across 16 urban and resort
markets with a focus on the west coast gateway cities. For more
information, visit www.pebblebrookhotels.com
and follow us at @PebblebrookPEB.

For further information about the Company’s business and financial
results, please refer to the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Risk Factors”
sections of the Company’s SEC filings, including, but not limited to,
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,
copies of which may be obtained at the Investor Relations section of the
Company’s website at www.pebblebrookhotels.com.

This press release 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 “may,”
“will,” “should,” “potential,” “intend,” “expect,” “seek,” “anticipate,”
“estimate,” “approximately,” “believe,” “could,” “project,” “predict,”
“forecast,” “continue,” “assume,” “plan,” references to “outlook” or
other similar words or expressions. Forward-looking statements are based
on certain assumptions and can include future expectations, future plans
and strategies, financial and operating projections and forecasts and
other forward-looking information and estimates. Examples of
forward-looking statements include the following: the Company’s net debt
and EBITDA; descriptions of the Company’s plans; forecasts of the
Company’s future economic performance and its share of future markets;
forecasts of hotel industry performance; and descriptions of assumptions
underlying or relating to any of the foregoing expectations including
assumptions regarding the timing of their occurrence. 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
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 Securities and Exchange Commission, including, without limitation,
the Company’s Annual Report on Form 10-K for the year ended December 31,
2018. 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.

For further information about the Company’s business and financial
results, please refer to the “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and “Risk Factors”
sections of the Company’s SEC filings, including, but not limited to,
its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q,
copies of which may be obtained at the Investor Relations section of the
Company’s website at www.pebblebrookhotels.com.

All information in this press release is as of June 3, 2019. The
Company undertakes no duty to update the statements in this press
release to conform the statements to actual results or changes in the
Company’s expectations.

For additional information or to receive press releases via email,
please visit our website at www.pebblebrookhotels.com

Contacts

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