Operating Segment Information

The Company invests in luxury and upper-upscale hotels located in major U.S. cities and resort properties located near our primary target urban markets and select destination resort markets, with an emphasis on major gateway coastal markets. In this note, the Company refers to hotels and resorts as "hotels". These hotels provide lodging, food and beverage services, and a range of amenities, including banquet and meeting space, fitness centers, swimming pools, spas, golf courses and other lifestyle amenities. The Company's Chief Executive Officer, who serves as the Chief Operating Decision Maker ("CODM"), evaluates the performance, allocates capital resources and manages the overall operating and investing strategy of each hotel individually. The Company's hotels are not managed on a consolidated basis. Given these factors, the Company considers each hotel to be an operating segment. Because all of the Company's hotels offer similar full-service products, services and facilities, serve a similar mix of business and leisure customers, have similar economic characteristics and risks, and utilize similar methods to distribute their products and services via third-party management companies, all hotels have been aggregated into a single segment for reporting purposes.

All operating segments adhere to the same accounting policies as those described in Note. 2 Summary of Significant Accounting Policies. The CODM evaluates the performance of each operating segment using hotel earnings before interest taxes depreciation and amortization ("Hotel EBITDA"), comparing it to prior reporting periods, forecasts and industry/peer benchmarks on a monthly basis to make decisions and allocate resources. Additionally, the CODM considers other performance indicators such as Total Revenue, Revenue per Available Room (RevPAR), Average Daily Rate (ADR) and Occupancy to assess performance. The CODM does not rely on segment assets or aggregated data by brand, property type, or geographic region to make strategic, operational, investment or resource allocation decisions.

The following table presents the Company's segment hotel revenues, Hotel EBITDA, including significant hotel expenses and its reconciliation to Net income (loss) for the years ended December 31, 2025, 2024 and 2023 (in thousands):



	For the year ended December 31,
	2025		2024		2023
Revenues:
Total revenues	$	1,475,544	$	1,453,309	$	1,419,949
Less: Corporate and other revenues	1,082		7,084		10,484
Hotel revenues	1,474,462		1,446,225		1,409,465
Significant hotel expenses:
Room expenses	259,863		250,875		248,020
Food and beverage expenses	280,379		273,731		264,163
Hotel general and administrative	122,926		119,308		120,122
Hotel sales and marketing	96,873		94,490		94,187
Hotel operations and maintenance	124,979		120,677		119,277
Hotel management fee	41,194		42,326		40,782
Hotel real estate taxes, personal property taxes, property insurance and ground rent	133,853		124,142		120,062
Other segment items (1)	53,212		51,507		51,565
Hotel EBITDA	361,183		369,169		351,287
Depreciation and amortization	(227,659)		(229,531)		(240,645)
Interest expense	(103,333)		(112,432)		(115,660)
Impairment	(48,871)		(48,146)		(81,788)
Gain on sale of hotel properties	—		—		30,375
Business interruption insurance income and gain on insurance settlement	17,422		48,574		32,985
Income tax (expense) benefit	(6,291)		25,628		(655)
Corporate and other (2)	(54,681)		(53,246)		(50,175)
Net income (loss)	$	(62,230)	$	16	$	(74,276)

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(1) Other segment items include expenses incurred for parking, spa, franchise fees and other hotel operating expenses.

(2) Corporate and other include corporate general and administrative and other operating income and expenses.

Historical Timeline

Fiscal Year	Filed
2025	Feb 25, 2026	Showing above
2024	Feb 26, 2025

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Pebblebrook Hotel Trust Segments Disclosure

Historical Timeline

About Segments Disclosures

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