Pebblebrook Hotel Trust (NYSE: PEB) (the "Company") today announced that it has acquired the Hotel Palomar Los Angeles – Westwood ("Hotel Palomar") for $78.7 million. The 264-room, upper upscale, full-service boutique hotel is located in the Westwood neighborhood of Los Angeles, California. The property will continue to be managed by Kimpton Hotels & Restaurants ("Kimpton").

"The acquisition of the Hotel Palomar marks our tenth Kimpton-managed property, and we're confident that together we can unlock additional value at this terrific hotel."

"We're thrilled with our acquisition of the Hotel Palomar Los Angeles – Westwood, located in the dynamic, high-barrier-to-entry West Los Angeles neighborhood of Westwood," said Jon Bortz, Chairman, President and Chief Executive Officer of Pebblebrook Hotel Trust. "The hotel is ideally located at the corner of Wilshire Boulevard and Selby Avenue, with proximity to all of the major motion picture studios, prominent dining, retail and museums and the Wilshire Corridor, which contains some of the highest-quality residential and office space in Los Angeles. Furthermore, the healthy economic environment in the West Los Angeles market, which has benefitted from increased international inbound travel, provides excellent long-term operating fundamentals for the hotel."

The 264-room Hotel Palomar is well-located directly on Wilshire Boulevard in the Westwood neighborhood of Los Angeles. This location offers diversity of demand generators and convenient access to tourist attractions, restaurants, nightlife and entertainment industry activity in Hollywood, West Hollywood, Beverly Hills, Century City, Downtown Los Angeles, Santa Monica and the Los Angeles International Airport. Westwood Village, the premiere shopping and commercial center of Westwood, offers visitors a full array of amenities including national chain retailers, specialty stores, fine dining and casual restaurants along with fitness centers, museums, and grand historic movie theatres that host many of the film industry's premiers. The hotel also benefits from its proximity to the Wilshire Corridor, which features ultra-luxury, high-rise condominium buildings, over 11 million square feet of Class A office space, smaller boutique buildings, as well as the University of California, Los Angeles ("UCLA"), California's largest university, which is home to a student population of nearly 40,000.

The Hotel Palomar boasts 264 well-appointed and spacious guestrooms, averaging 380 square feet. The hotel features world-class amenities including a 40-foot outdoor pool and deck with poolside food and beverage service, a fitness center with floor-to-ceiling windows, a five-story, 435 space parking garage with valet parking, a 24-hour business center and in-room spa services. The property offers eight distinct meeting rooms with over 5,000 square feet of flexible and elegant meeting space. The hotel's signature dining concept, BLVD 16, serves three meals a day and features home-style American cooking and specialty handcrafted cocktails inspired by locally sourced ingredients.

For the trailing twelve months ended September 2014, the Hotel Palomar operated at 87% occupancy, with an average daily rate ("ADR") of $207 and room revenue per available room ("RevPAR") of $180. For 2015, the Company currently forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization ("EBITDA") of $5.2 to $5.7 million and net operating income after capital reserves ("NOI") of $4.2 to $4.7 million.

The Company will own a leasehold interest in the property through a ground lease which will expire in 2107, assuming all extension options are exercised.

"We couldn't be happier about the opportunity to grow our successful relationship with Kimpton Hotels & Restaurants," continued Mr. Bortz. "The acquisition of the Hotel Palomar marks our tenth Kimpton-managed property, and we're confident that together we can unlock additional value at this terrific hotel."

"We are extremely pleased with the opportunity to further expand our partnership with Pebblebrook Hotel Trust," said Mike Depatie, CEO and President at Kimpton Hotels & Restaurants. "We look forward to leveraging our expansive relationship to drive continued collaborative success."

The Company expects to incur approximately $0.5 million of costs related to the acquisition of the hotel that will be expensed as incurred.

The acquisition of the Hotel Palomar brings the total number of properties in the Company's portfolio to 33 and marks the Company's fifth investment in Los Angeles, California.

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 51 hotels, totaling approximately 12,800 guest rooms across 15 urban and resort markets. For more information, visit www.pebblebrookhotels.com and follow us at @PebblebrookPEB.

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