Q3 2025 Pebblebrook Hotel Trust Earnings Call Transcript
Key Points
- Pebblebrook Hotel Trust (PEB) reported third-quarter performance in line with their outlook, demonstrating resilience amidst geopolitical and macroeconomic uncertainties.
- Same property Hotel EBITDA totaled $105.4 million, and adjusted EBITDA exceeded expectations at $99.2 million, reflecting strong operational efficiency.
- San Francisco and Chicago properties led performance, with San Francisco's RevPAR rising 8.3% due to an active convention calendar and recovery in business and leisure travel.
- Redeveloped resorts like Newport Island Resort and Jekyll Island Club Resort showed significant growth, with Newport Harbor Island Resort's RevPAR jumping 29%.
- The company successfully completed a $400 million convertible notes offering, enhancing financial flexibility and enabling share repurchases at a discount to NAV.
- RevPAR declined 3.1% due to a 5.4% drop in ADR, primarily driven by competitive pricing in Los Angeles and Washington DC.
- Washington DC experienced a 16.4% decline in RevPAR, attributed to reduced government travel and lower tourism activity.
- Los Angeles faced a 10.4% RevPAR decline due to negative impacts from fires and safety concerns, with ongoing challenges expected.
- Group occupancy declined by 2% due to lighter attendance at healthcare, education, and government-related events.
- The federal government shutdown and macroeconomic uncertainties are expected to continue impacting travel demand, particularly in Washington DC.
Greetings and welcome to the Pebble Brook Hotel Trust's third quarter earnings conference 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, sir. You may begin.
All right. Thank you, [Christine], and good morning, everyone. Welcome to our third quarter 2025 earnings call. Joining me today is Jon Bortz, our Chairman and Chief Executive Officer, and Tom Fisher, our Co-President and Chief Investment Officer. But before we start, I'd like to remind everyone that our remarks are effective as of today, November 6, 2025.
Our comments may include forward-looking statements that are subject to various risks and uncertainties. Please refer to our SEC filings for a detailed discussion of these risk factors and visit our website for reconciliations of any non-GAAP financial measures mentioned today. Now let's jump
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