Q4 2024 Pebblebrook Hotel Trust Earnings Call Transcript
Key Points
- Pebblebrook Hotel Trust (PEB) reported that their fourth-quarter and full-year 2024 results significantly outperformed their outlook, driven by strong performance from their resort portfolio and recently redeveloped properties.
- Same property total RevPAR increased by 2.1% for the full year, with gains across both urban and resort properties, and stronger out-of-room spending.
- Adjusted FFO per diluted share grew 5% to $1.68, surpassing the outlook midpoint by $0.09.
- The company's California resorts led with occupancy gaining 6.6 percentage points and RevPAR climbing 8.8%, showing strong momentum into 2025.
- Pebblebrook Hotel Trust (PEB) made significant strides in strengthening their balance sheet, reducing leverage, and executing $1.6 billion in debt financing and extensions.
- The fourth quarter results included a 190 basis point negative impact from two named storms in Florida and the brand conversion and renovation at the Hyatt Centric in Santa Monica.
- Urban performance remained constrained by ongoing headwinds in San Francisco, Los Angeles, and Portland, affecting overall results.
- The LA wildfires have created a tough start to 2025, with significant group and transient cancellations impacting bookings.
- Challenges in key markets like San Francisco, Los Angeles, and Portland muted overall performance, with San Francisco suffering from a weak convention calendar.
- The absence of $10 million in real estate tax credits received in 2024 creates a roughly 100 basis point headwind to 2025 expense growth rate.
Greetings and welcome to the Pebblebrook Hotel Trust fourth-quarter earnings call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Raymond Martz, Co-President and Chief Financial Officer. Thank you. You may begin.
Thank you, Donna, and good morning, everyone. Welcome to our fourth-quarter and full-year 2024 earnings call. Joining me today is Jon Bortz, our Chairman and Chief Executive Officer; and Tom Fisher, our Co-President and Chief Investment Officer.
Before we begin, I'd like to remind everyone that today's comments are effective only for today, February 27, 2025, and our comments may include forward-looking statements which are subject to risk uncertainties. Please refer to our SEC filings for a thorough discussion of these risk factors and visit our website for detailed reconciliations of any non-GAAP financial measures discussed during the call.
We have a
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
