Pebblebrook Hotel Trust (NYSE:PEB) (the "Company") today announced that it has acquired The Westin Colonnade Coral Gables ("The Westin Colonnade") for $59.4 million. The 157-room upper-upscale hotel is located in Miami on Miracle Mile in the heart of Coral Gables, Florida. The hotel will continue to be operated by Davidson Hotels and Resorts ("Davidson").

"We're excited about the acquisition of The Westin Colonnade Coral Gables and the ability to further expand our presence in Miami, one of the fastest growing markets in the country"

"We're excited about the acquisition of The Westin Colonnade Coral Gables and the ability to further expand our presence in Miami, one of the fastest growing markets in the country," said Jon Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust. "This hotel is our second hotel investment in Miami, and our first in the Coral Gables submarket. The property's excellent location in this affluent and dynamic market makes the hotel a leader among its competitors, and its upside opportunity makes it an excellent addition to our high-quality portfolio."

The Westin Colonnade is a 157-room, upper-upscale, full-service hotel that is located on Miracle Mile in the heart of the Coral Gables commercial district, just south of downtown Miami. The hotel is conveniently located near Merrick Park, Miami Marlins Park, the University of Miami, Coral Gables Museum, a multitude of golf courses and abundant shopping. The hotel's location is also proximate to major area corporate tenants including Club Med, ExxonMobil, IBM, Bacardi, Intelsat, Del Monte Fresh Produce and other top-tier institutions. The hotel is within close proximity to Miami International Airport, Miami's Coconut Grove, the University of Miami, South Beach and Brickell Avenue. Nearby leisure demand generators include over 140 gourmet restaurants, cafes, designer boutiques, art galleries and retail shops.

The Company acquired a fee simple condominium interest in The Westin Colonnade. The hotel, which was originally built in 1989, was converted into a Westin in 2007. The hotel's meeting and banquet spaces set the hotel apart from its South Florida competitors, with 23,000 square feet of meeting space, including a spectacular 9,000 square foot historical, neoclassical, marble-tile Rotunda that is extremely popular for weddings and other social and catering events. The hotel's first floor boasts a 4,460 rentable square foot restaurant space, currently leased to SUSHISAMBA, which offers a unique blend of Japanese, Brazilian and Peruvian inspired cuisine, music and design. The Westin Colonnade also features an outdoor heated pool with an expansive deck to accommodate social functions and parties, as well as a fitness studio and valet parking.

For the trailing twelve months ended September 2014, the Westin Colonnade operated at 80 percent occupancy, with an average daily rate ("ADR") of $198 and room revenue per available room ("RevPAR") of $159. During the next 12 months, the Company currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization ("EBITDA") of $2.9 to $3.4 million and net operating income after capital reserves ("NOI") of $2.3 to $2.8 million. These forecasted numbers have been reduced by $1.0 million due to the forecasted negative impact of a comprehensive $7.0 to $9.0 million renovation that the Company is planning to commence in the second half of 2015.

"We're thrilled with the opportunity to further develop our relationship with Davidson," continued Mr. Bortz. "We believe their expertise in operating high-quality hotels and their extensive market knowledge will allow us to unlock significant additional long term value at The Westin Colonnade."

"We are excited about the opportunity to work with Pebblebrook Hotel Trust at another exceptional hotel property, as this marks our third property managed for Pebblebrook," said Davidson's President and Chief Executive Officer, John Belden. "We believe the hotel has immense long term growth potential and upside opportunity, and we look forward to positioning the property as the market leader in the strong and growing Coral Gables submarket."

The Company expects to incur approximately $0.3 million of costs related to the acquisition of the hotel that will be expensed as incurred.

The acquisition of The Westin Colonnade Coral Gables brings the total number of properties in the Company's portfolio to 32 and marks the Company's second investment in the Miami, Florida market.

About Pebblebrook Hotel Trust

Pebblebrook Hotel Trust is a publicly traded real estate investment trust ("REIT") organized to opportunistically acquire and invest primarily in upper upscale, full-service hotels located in urban markets in major gateway cities. The Company owns 32 hotels, including 26 wholly owned hotels with a total of 6,203 guest rooms and a 49% joint venture interest in six hotels with a total of 1,775 guest rooms. The Company owns, or has an ownership interest in, hotels located in ten states and the District of Columbia, including: Los Angeles, California (Hollywood, Santa Monica, West Hollywood and Westwood); San Diego, California; San Francisco, California; Miami, Florida; Buckhead, Georgia; Bethesda, Maryland; Boston, Massachusetts; Minneapolis, Minnesota; New York, New York; Portland, Oregon; Philadelphia, Pennsylvania; Columbia River Gorge, Washington; Seattle, Washington; and Washington, DC. For more information, please visit us at www.pebblebrookhotels.com and follow us on Twitter at @PebblebrookPEB.

About Davidson Hotels and Resorts

Davidson Hotels & Resorts is an award-winning, full-service hotel management company that provides management, development/renovation, acquisition, consulting and accounting expertise for the hospitality industry. The company has amassed one of the purest full-service hotel portfolios in the industry, ranging from the upper-upscale to near-luxury segments; encompassing 39 upscale, full-service independent and branded hotels with more than 11,800 rooms and 1.4 million square feet of meeting space across the United States. Davidson is a trusted partner and a preferred operator for Marriott, Hilton, Hyatt and Starwood Family hotels. Additional information on Davidson may be found at the company's website, www.davidsonhotels.com.