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Organization
9 Months Ended
Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization
Organization
Pebblebrook Hotel Trust (the "Company") was 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, with an emphasis on major gateway coastal markets.
As of September 30, 2018, the Company owned 28 hotels with a total of 6,973 guest rooms. The hotels are located in the following markets: Atlanta (Buckhead), Georgia; Boston, Massachusetts; Miami (Coral Gables), Florida; Minneapolis, Minnesota; Naples, Florida; Nashville, Tennessee; Philadelphia, Pennsylvania; Portland, Oregon; San Diego, California; San Francisco, California; Santa Monica, California; Seattle, Washington; Stevenson, Washington; Washington, D.C.; West Hollywood, California; and Los Angeles (Beverly Hills), California.
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. At September 30, 2018, the Company owned 99.7% of the common limited partnership units issued by the Operating Partnership ("common units"). The remaining 0.3% of the common units are owned by the other limited partners of the Operating Partnership. For the Company to qualify 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"), the Company’s taxable REIT subsidiary ("TRS"), which in turn engages third-party eligible independent contractors to manage the hotels. PHL is consolidated into the Company’s financial statements.

On September 6, 2018, the Company and LaSalle Hotel Properties ("LaSalle") entered into a definitive Agreement and Plan of Merger (the "Merger Agreement"). Under the terms of the Merger Agreement, each of LaSalle's common shares of beneficial interest, $.01 par value per share ("LaSalle common shares") will receive either a fixed amount of $37.80 in cash or a fixed exchange ratio of 0.92 common share of the Company. A maximum of 30% of the LaSalle common shares outstanding immediately before the merger may be exchanged for cash (and elections of cash will be subject to pro rata cutbacks if holders of more than 30% of the outstanding LaSalle common shares elect cash). Additionally, the LaSalle common shares held by the Company will be canceled and excluded from the cash election. LaSalle's Series I and Series J preferred shares will be converted into two new series of the Company's preferred shares, which will be issued in connection with the merger. The Company filed a joint proxy statement/prospectus relating to the merger and other transactions contemplated by the Merger Agreement with the United States Securities and Exchange Commission (the "SEC") on October 29, 2018. The transaction is expected to close on November 30, 2018. The transaction is subject to customary closing conditions, including approval of certain aspects of the transaction by both the Company's and LaSalle's shareholders. On September 6, 2018, the Company also paid a $112.0 million termination fee on LaSalle's behalf which was due upon LaSalle's termination of its prior merger agreement with affiliates of The Blackstone Group L.P., which occurred upon LaSalle's entry into the Merger Agreement. The Company has included this termination fee in prepaid expenses and other assets in the consolidated balance sheets.