On October 26, 2023, Pebblebrook Hotel Trust (PEB, Financial) released its Q3 2023 earnings report. Despite facing challenges from severe weather events, the company managed to report financial results at the top end of its Q3 outlook. The company's urban markets, particularly Washington DC, San Francisco, Los Angeles, and Boston, led the portfolio's growth with a 4.3% rise.
Financial Performance
The company reported a net loss of $56.5 million for the quarter. Same-Property Hotel EBITDA was $114.3 million, Adjusted EBITDAre was $116.1 million, and Adjusted FFO per diluted share was $0.61. The company's Same-Property Total RevPAR increased by 0.2% compared to 2022, despite the negative impact of Tropical Storm Hilary and Hurricane Idalia on RevPAR growth and Same-Property Hotel EBITDA.
Portfolio Updates & Repositionings
Pebblebrook Hotel Trust (PEB, Financial) launched the Margaritaville Hotel San Diego Gaslamp Quarter after a comprehensive $27.0 million redevelopment. The company also completed a $140.0 million, 5-year refinancing of Margaritaville Hollywood Beach Resort, fixing the interest rate at 7.0% for 4 years. The company has contracted to sell Hotel Zoe Fisherman's Wharf for $68.5 million, with the sale expected to close in Q4 2023.
Q4 2023 Outlook
For Q4 2023, the company expects a net loss between $48.3 to $42.3 million, Adjusted EBITDAre between $50.8 to $56.8 million, and Adjusted FFO per diluted share between $0.09 to $0.14. Same-Property RevPAR is expected to increase by 1.0% to 4.0% compared to 2022.
CEO Commentary
“Our third quarter bottom line results were at the top end of our expectations, even after the negative impact of severe weather events on both coasts and the labor strikes in the entertainment industry that primarily affected our Los Angeles properties. We continued to see healthy occupancy improvements in our urban market hotels, driven by improving group and transient business travel, as well as solid gains in weekend leisure demand." -Jon E. Bortz, Chairman and Chief Executive Officer of Pebblebrook Hotel Trust
Financial Tables
The company's Same-Property Room Revenues were $257.4 million, a decrease of 1.0% compared to 2022. Same-Property Total Revenues were $389.1 million, an increase of 0.3% compared to 2022. Same-Property Total Expenses increased by 3.7% to $274.8 million. The company's Same-Property EBITDA was $114.3 million, a decrease of 7.0% compared to 2022.
For more detailed financial information, please refer to the company's official earnings release.
Explore the complete 8-K earnings release (here) from Pebblebrook Hotel Trust for further details.
