Pebblebrook Hotel Trust, a publicly traded real estate investment trust and the largest owner of urban and resort lifestyle hotels in the United States, announced the successful refinancing of its near-term debt maturities, strengthening its liquidity profile and extending its overall debt maturity schedule.
The transaction includes a new $450 million senior unsecured term loan, the early repayment of the Margaritaville Hollywood Beach Resort mortgage originally due in 2026 and the 2027 term loan, and the extension of the remaining $48 million portion of the company’s unsecured revolving credit facility. The extension restores total revolver capacity to $650 million through October 2029, including two optional six-month extensions.
As part of the refinancing, Pebblebrook closed the new $450 million senior unsecured term loan, with $360 million funded at closing to refinance the existing $360 million term loan and extend its maturity from October 2027 to February 2031. The transaction also increases total term loan capacity to $450 million. An additional $90 million delayed-draw commitment will be available at the company’s option through December 15, 2026.
The company used $40 million of cash on hand to fully retire the outstanding balance of the Margaritaville Hollywood Beach Resort mortgage due in September 2026. This move further reduces secured debt, lowers interest expense, and simplifies the capital structure.
Pebblebrook expects that the $90 million delayed-draw capacity, combined with cash on hand and anticipated 2026 free cash flow, will provide a fully funded path to address the remaining $350 million principal amount of its 1.75% convertible senior notes maturing in December 2026. Once those notes are retired, the company expects to have no significant debt maturities until 2028.
In addition, the company completed the final lender extension of its senior unsecured revolving credit facility, extending the remaining $48 million, restoring the full $650 million capacity through October 2029. The revolver remains undrawn and available, providing incremental liquidity and flexibility.
Pricing for both the term loan and revolving credit facility remains unchanged and is based on a grid of 140 to 250 basis points over applicable SOFR, depending on leverage. As part of the refinancing, the company eliminated a 10-basis-point credit spread adjustment charge previously applied to all bank debt, resulting in annual interest savings.
After giving effect to the refinancing and related interest rate swaps, approximately 89% of the company’s total outstanding debt and convertible notes effectively bear fixed interest rates, approximately 98% is unsecured, and the weighted average interest rate is approximately 4.4%. As of February 11, 2026, Pebblebrook held approximately $150 million in cash, cash equivalents, and restricted cash.
Pebblebrook owns 44 hotels totaling approximately 11,000 guest rooms across 13 urban and resort markets in the United States.
Support: BofA Securities and Wells Fargo Securities organized the debt maturity extensions and upsizing, serving as joint bookrunners and joint lead arrangers. Bank of America, N.A. serves as administrative agent. Additional joint lead arrangers include Capital One, M&T Bank, PNC Capital Markets, Raymond James Bank, TD Bank, Truist Securities, and U.S. Bank National Association. Wells Fargo Bank and U.S. Bank National Association serve as syndication agents, with Regions Bank acting as senior managing agent. Royal Bank of Canada joined as a participant in the senior unsecured revolving credit facility.
KEY QUOTE:
“We are greatly appreciative of the strong support from our lender group on this refinancing. These transactions further extend our maturity runway, reduce secured debt, and add flexible, attractively priced debt capacity. Most importantly, the delayed-draw feature of the new term loan, together with our cash on hand and expected 2026 free cash flow, provides a clear, fully funded path to completely address the remaining $350 million of our December 2026 convertible notes. We’re also pleased to expand our bank group, and we welcome M&T Bank and the Royal Bank of Canada as two new financing partners as part of this overall transaction.”
Raymond D. Martz, Co-President And Chief Financial Officer, Pebblebrook Hotel Trust
