Pebblebrook Hotel Trust, a real estate investment trust which owns, acquires and manages hotel and resort properties, has launched a private offering of convertible senior notes due in 2030, aiming to raise $350m.

The company also plans to offer an additional purchase option for over-allotments, potentially increasing the total principal amount by up to $50m.

The proceeds from this offering are intended for the repurchase of certain 1.75% convertible senior notes due in 2026.

The repurchase of these is expected to be conducted through privately negotiated transactions.

Pebblebrook Hotel Trust anticipates that holders selling their 2026 notes may engage in or unwind derivatives related to the company's common shares, or buy or sell shares to hedge their positions as part of these transactions.

The company recognises that many holders of the 2026 notes implement a convertible arbitrage strategy and maintain a short position in common shares.

These holders may adjust their positions by purchasing common shares or entering into or unwinding economically equivalent derivatives transactions in conjunction with the cash repurchase of their 2026 notes.

Such activities could potentially influence the market price of Pebblebrook Hotel Trust's common shares, according to the company’s press release.

It may also affect the effective conversion price of the new notes at the time of these transactions, either by increasing it or reducing any potential decrease in the market price.

Pebblebrook Hotel Trust is said to be the largest owner of urban and resort lifestyle hotels in the US. The company owns 46 hotels with approximately 12,000 guest rooms across 13 urban and resort markets.