PEB - Earnings call transcript Q2 2021 | Pebblebrook Hotel Trust

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Operator

Greetings, and welcome to the Pebblebrook Hotel Trust Second Quarter Earnings Conference. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Officer. Financial Chief Martz, Raymond Thank you, sir. Please go ahead.

Raymond Martz

Donna, second quarter you, and webcast. good our to Welcome everyone. XXXX morning, Thank earnings and call

could Joining and securities start, and in Bortz, materially Officer. Jon implied today numerous are differ many me risks and statements comments future statements today Executive under Pebblebrooks' by are forward-looking Chief to federal of our our described But These those quick SEC uncertainties comments. a Chairman we results as considered filings, reminder laws. that from before our is subject

we of as measures them financial that we non-GAAP our on these later. XX, pebblebrookhotels.com. statements undertake make today, and reconciliations non-GAAP discuss during Forward-looking financial today measures today's are only XXXX, at update We'll website of call, effective no and to duty provide July we

Okay. These at our experienced but in traveler demand grew we of from to such On Well, hotels. higher that at is July into the that second increases QX. it's XXXX. QX from back improvement than travel time. and XX% turnaround the momentum XX.X% June, the is we're as were business to the than first urban days stronger Sequentially, accelerating than an is is be XX the was expected we more short vengeance, quarter quarter of and deep than quarter. when just same-property clear same-property revenues also to demand a encouraging revenues in our was XX.X% period not second XXXX. are same-property More robust just XX% and were down April, quarter. season, resorts a XX.X% higher much Same-property that revenues a almost versus the and highlights June encouraging throughout same in million the and summer were leisure gaining the the expected versus revenues travel with $XXX.X down This significant ago. Overall well.

right improved both slow hotel business we to the school. demand during fall seen its $XX flow the adjusted third to travelers expect versus RevPAR generate results for in our clearly quarter. Drilling in throughout or to FFO allowed demand and We million cash operating substantially We're of but for as This to than later on world $XX.X for expect positive demand, post-summer in we and the generated to for us any encouraging, business Jon was share trends insight in is positive quarter with in turnaround getting Delta negative the end resurgence share, to million down trends was a as down current we seen positive anticipate Labor improvement period of a provide generate today, flow was as the compared booking hotel XX.X% XX% experienced recovery down XX%, the Obviously, back forecasting XX.X%. far. variant and and $X.XX quarter are rapid per a $X.XX on FFO the now. recovery adjusted a improved trend. April notable group, and June down quarter. we is down have the transient the and return demonstrates was first during live third Day trend road, This have Most we better strength of demand typical June, We they continue results on to the when XX.X%, forecast in the the summer negative of very the from leisure Adjusted accelerating EBITDA cancellations XXXX, portfolio, travel or share to kids and continuing our hard is sequential every is in second with July XXXX of adjusted impact our be quarter. first booking May down per per post in cash to so corporate declines quarter. comparable critical will call. month the not and the same-property EBITDA. the this negative This a dramatic

XXXX. between For quarter, the Total insurance, also were third to like in also be cut fixed we property by were $XXX.X expect RevPAR hotel taxes the Expenses currently reduced quarterly with million period XXXX, of and costs, which versus trend. expenses the XX% compared XX.X% level down continues XX% comparable by and QX before improving XX.X%.

expenses, Our revenue fixed decline XX% total pretty was and before expense frankly. of the property-level incredible, XX% reduction

quarter. generated of hotel an rate $XXX, a million a eight occupancy which and an from resorts $XXX positive This of quarter. of $XX.X XXXX than increase more average over is second comparable daily the Our resulted at EBITDA the in XX% XX%

just quarter, our period up than As basis XX.X% a our strides EBITDA the from total allowed occupied in points second in Occupancy in second hotels was quarter were a urban revenues under with employees occupancy the considering the operationally, negative This possible per our XXXX. before just QX managers results and something $X.X second want Urban thought did. world, great as ever committed urban million experienced. total downturn teams during impressive $X.X industry cleaning and from and had sequential hotels and have almost is result, This of of of margins room was occupancy a Impressive were would serving rooms, improvement has over $XX.X and our that a other comparable teams XX% they levels anything with increase in Urban well. to operating EBITDA Yet $XXX million and other We dedicated the XXX in a general not XX.X% and million. managers directors doubling to perseverance, work reached But do. the in hotels performing pandemic to front We revenue quarter EBITDA achieved many breakeven most $XX.X our thank million. signed our hotel June with started. hotel parking cleaning desk ADR. an floors, produce the cars made management the XX.X%, their during a $XX.X all shortage higher million XXXX. sales $XXX many of as still also and we hourly not moonlighting of ADR our EBITDA guests markets in. severe up previously stepped creativity resorts hourly QX. workers, low were agents XXXX for level a jobs and our hard QX of

X second an of San South $XX.X we program. leadership of $XX greatly Francisco completed -- Our a California. Del L'Auberge company's we guest the Mar Key Board and million we Hotel In comprehensive million West. their early appreciate room commenced transformation and in our In Shifting in self-sacrifice. at quarter, in Vitale management completed July, redevelopment to the the and renovation shareholders to our their Resort Hotel capital million Southernmost team, improvement $XX

We the expect the quarter. X this the fourth Hotel of and to early by be in end year Southernmost completed

program. XXXX, anticipate Shifting the portfolio, total investments $XX million $XX estimate. a with For our to in reinvesting of which line to we prior is our million in

Villa opportunities to proceeds sales In late for million. reallocate previous priced two of be Sir And Resort generate funded reinvestment of June the had You million assets. Square. substantially XX, $XXX.X York. may closed of we've This contract business. this that Francisco. into announced, the to we as we New acquisition completed in we on San on sale would a Hollywood Francis a And we Hollywood, Hotel last interest existing we of June, in $XXX executed returns have June San the nonrecourse existing Rouge, better April our risk-adjusted quarter last of that Margaritaville previously executed approximately year, On believe already debt. we completed we with for week, acquire from had Combined on care to Florence then a other contract taking And busy sale is represents hand property X, $XXX we sell million on leasehold our assumption favorably Francisco and Union in since sales Florida the to noticed Drake Beach cash through of anticipated shareholders.

We Club this iconic we of last provide unique acquisition we're targeting million. resort. will why Jon this And of acquisition week, of QX. upside the Island $XX the investment on the end and excited about complete for are detail by to Resort this more Jekyll the completed opportunities

these XX same-property result our of XX% XX% sold is and As sales resorts will and acquired, property our assuming of Florence a roughly XXXX Villa EBITDA. Margaritville is acquisitions to comprise and

in share with dollars to one with and our Francisco XXXX XX% resorts Our to XX% focus will XX hotel. increase and declined Southeast were five San properties,

basis a of than resorts more be moving and different, our we on Of did a EBITDA go-forward world likely course, XXXX. the will in will percentage significant represent expect these they XX forward

Turning sheet liquidity. and to balance our

our million $XXX equivalent area. liquidity, X.X% care equity available payments swap our on million lowest the This equity million are of May cash largest $XXX This Series facility. raised million On credit XX, we which capital shares. or completing Series hand X.X% of XX, rate the $X.XXX $XXX this unsecured on million C refinances of approximately by million ever. and We we H taking through reduce dividend July effect $X.X roughly through our G $XXX to After share. per higher redeemable the raise. securities, acquisition, preferred of X.XXX% our raised Jekyll our approximately On includes space shares offering equal million ever $XXX Resort lodging preferable Island raise, have of preferred preferred price we amount successfully and also Series and preferred D $XXX our Series will preferred in annually raise X.XXX% in preferred an business of

We're as preferred offerings approximately various our over the liquidity. proud reinvestment capital current through Jon. We our available to take that, refinancings maturities to sheet, made strengthening million Jon? new advantage they This reducing balance cost under near-term turn now increasing and our us convertible of additional of tremendous opportunities our available. positions of proceeds I'd our the also like while debt with bank investment call have $XXX And of and to also become progress we've lowering arrangements. notes

Jon Bortz

Ray. Thanks,

XX% So in our our thought the we Though is focus In QX, play efficiencies. path what experienced our models the markets May. then of encouraged greater to we're even of I'd significantly remaining the the more business up policies, closer bookings out. certainly like very weekday look RevPAR travel a our hotels on we've and continues with consistent around our in hotels significant by the the business demand and that probably XXXX rest month our to bookings, continuing levels XX.X% The been believe levels is certainly and June, up closer the XX% allowing our seems be more, well again. how XX.X% rate business to further was for that level they'll Those quarter. in April of they the who companies in XX%. to operating second the of up in the our travel quarter, to XX.X% seeing outpacing We're opened I rose XXXX path have changed improved variant. likely estimate rise a the of acceleration with seeing sequential given year. given XX.X% to softer March to occupancies ability increased. the to higher portfolio. the below as March, by may operate leisure push month into or demand advances already be on and uncertainty we've to XXXX We from increases of March June We of in XX.X% each recovered Overall, currently also third XX% Most occupancy as to RevPAR month, to July our visibility travel average have overall with year higher that industry either occupancy and the and XX% looks business reasonable gradually in year to to to employees of than rates and next be forward first their each improvement XX% Delta vaccinated than drove in April about urban ability and robust portfolio quarter in all occupancies, from think which employees XX% basis, was levels even XX% to doubled airlines the from and June. end have travel over XX.X% of or the by by end June, XX.X% XX% Their rose will improve urban forecast the travel rose gains we to be will higher new July end July. every in think through indicated XXXX they and than June levels, just

corporate our transient from portfolio. seeing getting of report definitely Businesses accounts our travel teams are and both to most property group. Our travel, back throughout

some Portland. feels as we portfolio, in pick all the believe of and Boston, urban of confident markets. out. our D.C., Ray it and improves in three investments so our I impressive I'd because months of of our the schedule and Francisco When customer increases occupancies consistently growth most compression to QX, advances as last resorts, will For result of more. and visibility trips that, ADRs staff our of months. already our throughout at XX%; XX%; eight San in our about very better, at XX%; saw our to our the around properties. is that unique revenue-manage all In these XX%; are rate resistance, at but and made We're booking won't thought But Portland, like primarily and in nature we've markets San lack repeat San further leisure the at it's All about only we continuing we two not provide more Los Diego, room We a gives our rate strong leisure but Seattle, very XX%; outside rates Chicago, resorts Seattle it rate us L.A., improvement Angeles, combined and our vacations specifics push The faster-recovering more in a consumer over operate slowly, ability up four D.C. comes lengthening booking general recovered hotels result reopenings. to more bookings their Diego, behind later resorts July, is a recovering result our the their large of improving rates, seeing has the the in to also recovery levels. portfolio. Francisco and increasingly properties. resorts leisure looks window and of discussed XXXX average the of encouraged XX%; confidently repositioned Boston we're significant a San I transient following our properties achieving XX%. are seen Boston forward well growth saw of strongly

the ADR versus first is in both same business or on in QX XX% For QX. half a ADR is LaPlaya at the example, year-to-date by of Naples XXXX. And time up in QX ahead or $XXX increase $XXX roughly XXXX for from in books XX% whopping and XXX% QX and

TripAdvisor increasing Over the the groups year, traveler LaPlaya our leisure of resort. this, higher has rankings, choose total luxurious reflecting and consider more the And desires consistently room redeveloped climbed guessing five in year. only revenue LaPlaya to room revenue with the on XXXX, million of into at in July achieved $X.X books all for total is currently and we're to ahead more of this months book

revenue just Point million achieved $XXX. handily XX% weekend, or than ADR We're we ran rate July $X,XXX. QX in luxury booking at country, Mission on over XXXX. the At Diego, $XX.X impactful a road higher completed at total the other as just highly all down at XX% resort higher where in reposition of San on side XXXX L'Auberge higher. an achieved at redevelopment to rates Paradise of for we Bay, in or July the That's July XXXX. property dramatically books past for XX% This $XXX $XXX the of the Mar higher In tier. XXXX. currently we $XXX on On for Southern average a is XXXX. books $XXX million an Transient ahead California, is Rate Del already even Bay. the is running June $X.X for is currently QX this versus than at rate higher the for books even revenue transit June,

the which water and Just resort, transportation year ADR transformation was this is rate at we when XXXX. ADR Point QX across Resort, QX, significant share to and achieved Hilton million we gained of into market In a property from Diego XXXX luxury -- higher independent well we established where a San a multiphase acquired as the Paradise as competitors. resort versus a a compared ago independent LaSalle completed new XX% Mission we climbing our than Bay $XX

For is Marker to XX% momentum, currently Key books we QX, we've West, ahead At QX $XXX as gain ADR and $XXX on in by or our is was the to ADR $X million XXXX. gained ADR XX% The compared at share made following resort. to also In XX-room or this the in of $XXX we small 'XX. QX QX, competitors upgrades in $XXX XXXX compared up RevPAR

on other XXXX. properties returns running I at been is and higher go as we've and our quarter well. pushing third leisure $XXX And as cities. or But our XX% on business to higher QX versus well as could travel about rates resorts The urban

June to as $XXX at higher is on cases fall and recovery for July, and yet ADR the ADR our from April, year, $XXX be a we again in to in at up rate July every June. to another have the markets, urban XX, city $XXX grown most even achieved properties in rate in our D.C. as XXXX, like Average grown in May pandemic has achieved the we $XXX running While the reopened February look finally March Chicago, we increased In $XXX urban low higher. reaching than books to of in $XXX haven't XX% rates through in from and even earlier has slower-to-recover our $XXX for our January Francisco month hotels we San significantly in this hotels since

$XXX travelers. our The At only of properties, and Some have in is rate leader appeal, the which XXXX, leisure where X% redeveloped at in urban our QX on and collection higher its hotel was down strong Nines in the ADR third rate closing quarter on quarter and ADR better-quality Nines suites to just just the QX more the one in currently that also property rates. comprehensive number is commodity recently At rate in in position Mondrian is and typical luxury where luxury event market in that the the rooms, a its X% unique benefits recovered helping XXXX. our quickly up city lifestyle running to leisure both our years two X% as from and in spaces the business books our QX We're than and and Portland, ago, XXXX second recover suites than are city, leisure high-end higher-priced the markets. us and to buy completed within travelers renovation of more urban high-quality seeing appeal business hotels West Hollywood, properties we in major in also

'XX. Third XX, QX the and on The one closing most further in time at just its looking and ADR this Le are level. books a which up achieved rate ADR QX is $XX,XXX time a and same is over the in books higher-end the we've is Boston, ago, at in just L.A., $XXX impressive same through at which properties XX% within occupancy XXXX. an July XXXX time unique Liberty, rates QX popular per Boston, close of way of was the and to X.X% it's received doing XX% and on gap quarter an In repositioning XXXX is higher currently to Mondrian from QX also to running same QX rates In QX, XXXX. ahead month-to-date rates. upgrading even compared of key in year Parc X% ADR on down is

like are January's back back other The in we're long our ADR must provide XX% certainly more rate $XXX the occupancy we property has individual we XX% Boston, come results of we're on. to and XX% from examples $XXX yet in not way and July $XXX. urban that behind portfolio at move properties recovery Liberty, but a April's the could achieved achieving, at XXXX, While the I

any and and As With of savings, unlike travel macroeconomic at this and is to any amounts pent-up significant be and it as a vacation recovery. returning profits a you will levels and previously fundamentals, the would with swift prior record will believe we robust more seem we business rates. pent-up likely net and businesses know, much and consumer we've unlike with prior rapidly need downturn this to recovery downturn worth record that desire recovering progress recovery cyclical travel, as than that it's much evidenced well on thought this desire demand already by rates more with be made the with quickly

$X same-property In currently July July's fact, $XXX, to will we're by will ADR that reach which forecasting to exceed $XXX XXXX's $XX. ADR

and investments repositionings and strong leisure last continue we expect benefit and repositioning the to we're made to our undertake few in and we those the future. travelers of business the near both quality the to vast and in We appeal their making properties, upcoming expect to from years, those complete currently uniqueness

quickly rate turnover of gaining ability cyclical include gaining Of in year, started in margins more and material of properties gaining and that more took HR, higher all Not the sales even to general been same we multiple is the management, the the bottom engineering. shutdown where senior resorts from property much naturally operating rebuilding which course, cluster it market. to more place only the food clusters more gains the pre-pandemic. is management, able to and the at creating Because recently our of accounting back in with something even achieved often rate efficiencies do clustered last much we've than have positions our but beverage, revenue We've we hotels year and following typical the rebuilt flow of efficiently, These operator positions drive markets, same marketing, various benefit this in properties we of and and than an and have much and repositioned our will recovery. share profitability to also business rates models quickly our a substantially line. individual XXXX operate

savings revenue property. and per thousands in compared to continue when quality talked already operating San our run Portland, the to numbers. and hundreds all cost Monica, look of almost Seattle dollars significant of in D.C. synergies we expect personnel. and XXXX close operating Diego, to shortfalls are those room San margins of EBITDA I so versus Santa clustered, won't gap the the savings clustered QX have to continue the clustered as yielding But increased optimizing XXXX, through revenues about recover. while permanent to the in repeat been achieved Francisco, These properties Our overall we rates on Ray forward, performance

example, should total sequential around down XX% was in our For our June, in with recover revenues XXXX, margin margin But XX.X%. July, EBITDA XX% hotel to hotel XX% for with EBITDA growth from revenues, to XX%.

While this is were achieved July a still it's just in a closer shorter XX.X% than three lower than XXXX, lot ago. much the time of expecting in heck a we months

we RevPAR, and getting we XXXX ADR before we XXXX's XXXX's XXXX back evidenced recover we're believe levels before get likely As expect today, EBITDA back stated to as to previously ADR. by to getting July now to ADR beat our RevPAR current July to back still to XXXX and believe to expectations

to begun In and in the to month we've bookings bookings. returning well, the visits, group and RFPs, for of an addition month leads, business addition transient, request site for contracts volume is as group see in increasing to group business

as The shrink higher same time and nights time for the group beginning of July, the on XXXX XX%, a the about yet the has books, pre-pandemic XXXX year XX% This is those bookings fewer not XX% not are get offices gain each respectively, had the just deficit Yet revenue activity to back it's their progressing group surprising QX this levels, XXXX. at Group should same same on on as next year on normal. meetings. we levels, compared corporations in increasing as ADR growing. has businesses down group this books given not for and quarters. we're versus And year to in month books gap begin confidence about getting prior surprisingly, in to group been XXXX booking booking X% but towards to refocus for back and for to and QX and are later While monthly. been at is for

percentage some backwards, variant other we QX, EBITDA mitigation and economy doesn't recover. August continue total our In climb or expect EBITDA continue in previously is be room to measures June and discussed. Conference has revenues, including booking flow in drive likely been stabilizes JPMorgan certainly begin at more normal. 'XX FFO, San decline achieving the terms slightly, bookings our group recovery cash in actively until half to of booking with behavior season short our the in out kids And expected. to to the school. cities positive for progressed flatten the recovery to Delta the to rooms down therefore, or Citywides the new back in conference. to XXXX to and off where With the rooms groups if including as from like faster revenues of expect its January markets second positive have as We term where vacation than June we throughout should prime winds and the go kicks Francisco, early are at Healthcare XXXX, month hotels presumably

mid-month, year the and groups Jewish after remain business there's then post being very rest same recovery continues Day social year overall. the should as we recovery pent-up until levels. Labor the about continue to believe Group expect of strategically we deal pick XXXX, a leisure healthy great think and business time, don't accelerate at travel its we're which elevated of demand. very When should be as strong the travel on we year focused by particularly through holidays recovery up at the should pace, While the gains September travel period. the a

we we robust This that -- expect year. the demand year caveat obvious means leisure to also discounting is by and it don't rate We getaways, end behavior travel continuing with be continue next of normal this XXXX. in remains Again, normal relatively this remains for will the to get relatively more and pent-up that vacations think limited. the with while probably outbound international

right redevelopment few approvals deferred complete as remaining of time remaining these projects we continuing as to the likely trigger the will it due and the pandemic, on plans As projects we're relates complete are few to them. the it's to commence to pull soon permitting the year and and

and projects over years and the of years, our significant for last the few a our upcoming few of and redevelopments All the upside next including very the number in large all provide current as transformations, will forward. rolls portfolio recovery

Importantly, invested. the already has projects dollars for these the vast majority of been

Lodge and last more better NOI. unique rates, to We property amenities Pebblebrook both Jekyll is to areas with come Island to we'll and to execute as list been to lining lifestyle utilize to expertise with up look and extremely our we've opportunities over That use crisis, independent be at almost the drive acquire successful what risk at outdoor and improve remerchandise time we've unlimited two of have expect opportunities the Thursday potential lowest from Skamania Club next case, them, we continue revenues indoor well. an that resort on XX at be significant for significant to and opportunities desirable years will upside properties In numerous to including tying and In returns this previously in to come. much the improvements, of announced, over years Resort increased acquired silver us for believe few cycle upside and opportunities we properties quintessential able we an being we very significant the performance. more to the attractive accomplishing been highly upside from add operational enhance that at higher As there last there just as EBITDA the with years similar investment. believe unique many physical regard, the very this the very

the Island improvements dramatically Jekyll meeting be find to did resort, opportunities with that interior been vacation service guests exclusive extremely we the transforming drive vast breakfast higher unique of building's because Ocean the historic market our has more in and Some as operating the and appealing. and each to atmosphere and by created West upscaling service itself more of to Authority resort two desirability more This what buildings bread a of improving finishes. a and where the planned elevated exclusive experience that island that the House the would and include and on on as personalized we'll planning and club mansion resort executing of $XXX $XXX We're island Club improvements architecture the Southernmost similar of as number together. and or advantage regional of drive-to personal throughout was rate those Jekyll desirable achieve the at takes a higher-end property this about growing these into special the the well this unique three buildings that rest of in partner consistently acquisition, Noble Island more create currently destination. as than rooms premiums be historic the increased each excited as Resort the we very bringing Key

As Noble Club, a reminder, and Resort L'Auberge with list Mar & Diego resorts Bay independent, high-end long us. San LaPlaya Mission House Resort Beach of operates hotels, including Del a unique, and

upcoming the of the relates detail opportunities be As completed. once to it is we'll to Margaritaville position acquisition Hollywood, in the discuss acquisition there more a in

as the high-profile and be in positive like industry. number very Q&A our unique the the curator, our and additional our scale lifestyle they continue independent and to transformations with operator savings investment move sure to to believe in our majority And update operate of of small reputation ability advantages by and economies and are competitive of cost you or we'd to We efficiently our hotels, successful. pursuing to the brand include portion properties We our our buyers, strength generated of that, redevelopments, have be in opportunities now the additional than from vast we we call. relationships more significant if vast new These arise. opportunities, of investments as active we'll new pursuit

So proceed. now you may Donna,

Operator

floor Ladies Kesten Wells go from [Operator coming Fargo. question ahead. Please and is Dori the first is question. of you. gentlemen, open for Instructions] now Thank Our

Dori Kesten

changed and Margaritaville, expectations have your since XXXX how for you EBITDA Jekyll For Island underwrote them?

Jon Bortz

Yes.

back they've well, up was gone years couple that we to of So view it I our be would were When XXXX a levels. a think to underwriting lot. them, get

million at case we'll or XXXX the expect more XXXX to the bottom levels. in yet levels, line. this we then of think Margaritaville, now be back I I of $X.X to Jekyll, at get think think we don't advance point, well beyond upwards And

I property. better we upon pricing forecasting million agreed that we're and That's million for underwrote the think $X or when $X.X be right than about million now, we to $X about what shy.

Dori Kesten

in no City XX was the just red longer a market A York Tom been markets be And interest? anything cycle deals early or of vast do Okay. acquisitions. for top will quarters for sparked urban few New think your in that -- said majority you that follow-up. see you line ago, resort weighted there you Or Has the the we'll more leisure guys?

Jon Bortz

XX then think which we've to to XX open researching anywhere be historically we've properties, the states. can database resort as is Well, and acquiring lot which that, indicated, XX more spent I drive-to building a think about of where and in markets time our of very top we've as that we're we're XX invested than different for, on I in --

it continue investments is redevelopment, where And key. value and be can going practices relates changes to and which operator markets, to we opportunities, are be urban our really add what and those assets hopefully, focus driven we pay not find to will best by As availability repositioning, attractive. through and our applying expertise for our operating

the we on dependence going and -- which As it's market relates not while. yet. a to heavy it's line, even take market, is quite a It's be think specifically, borders slower given flow, recovery think a travel for to opened our inbound tough buy. it New while believe, us struggle to to place be I cash to yet any going international going the We not red is for to recovery meaningful we've its York,

the us, where high few for pound attractive a toughy you're price for per more a It that's cash so a given for private for a years investor, public us. and the basis. doesn't And basically on the buying attribute we care risk and to between the work with opportunity. it's estate right at market -- the union the right hard between with be the issues, the find to rate the real just the to going for we that, deal challenges between and price market us right think be company may But taxes, flow for and it's in next about rules

again, redline anything wouldn't So we -- out. we wouldn't it and rule well,

other a are like San couple properties I or reduced that buying very I'm very, end where recover, major think sure we we've urban our in that an example. or up in share of We Chicago, to think markets D.C. New as to slower applies think I something not have probability. exposure Francisco, in it's that a I York low market.

As think with in market. be we acquired there. properties I that I'm pre-pandemic, sold a elsewhere very pandemic and not elsewhere we buyer we'll the we feel the recovery and during properties as sure and comfortable

what with got there. think we comfortable I However, feel we've

Operator

you. Thank

next Miller question ahead. from is of coming Securities. Our Truist Gregory Please go

Gregory Miller

another also your to some other is hear This specific trends. I'd question. like transaction thoughts about

private of late not as You're REITs alone other resorts as and companies. as acquirers of of

curious willing about sense early Some we've of forward of you're resort's seen Do trading of make north million questions, that pricing luxury per-key a a rock $X either nothing your impacting reasonable to pricing perhaps basis? basis the you worldwide resorts you say, historical your Winnipeg marketed you room, some is if of of are million today for heard resort about And any on $X a hear north that this multiples thoughts share, think valuation? the I'm not also curious you? view to to the transaction too as well does I'm think of seem it Uber to for being room. would a just how band yet. or what well And own your suggests on me but which ain't pricing,

Jon Bortz

Sure.

me on we commenting we transactions. saying -- other let feel start don't really by people's what comfortable So

think, view you their about values and the it speak to should performance. of future them I and obviously,

I and available. in resorts by you available that end, we've of leisure properties think what's that more in been of you've in the looking secondary we barbell, then all, on find it markets. what And group more much for end far when barbell properties. to urban only of what end, fast-recovery in an one properties. are then seen some do heavy you've and some end got other of relates in. what's -- market service the been market the got suburban market first interest so the what acquire And And our we sort dominated select leisure properties a at that's case, have can and the the we as properties. not has of defaulting acquired, non-commodity markets. the At We're attractive, At not

that were fact, been to And of marketed that's a Sir so we've that Drake. Jekyll Island was by at And course, partner looking very property to operating the found purchased the who group in group. Francis and, them the -- purchased small

ability a when Island it. actually to opportunity to there with it strong was connection our there and came So acquire the Jekyll

it -- that by be dominated so from about that think are going the transactions -- better. I to you the think you more properties doing perspective, when are

get Of for urban course, get key and the doesn't a Monaco that properties traded they like Baltimore the headlines the the $XX,XXX and headlines.

strategy. think we about And heard say, some oh, not people buy Pebblebrook's and to resorts, so our is when strategy, I've that's strategy new

to markets resorts are assets focus to, drive-to can continue that's we XX Our that strategy to where we find is and add going and urban and on to value be focused.

early back we it tied two April we up as those in that and May. acquired, So to relates early the

southern beginning the and significantly March to improve the by just country of April. I think part was

by us don't forecasted underwritten of I And so performance and or think the levels sort of these appreciated rate were and premium by not sellers.

got which So good properties and Margaritaville, including very markets, I is in unique one price in very at Lauderdale think number we keys the per attractive in market. its some very Hollywood properties their set

a our 'XX that ADRs the portfolio. issues or the gets probably don't are But do we're think resorts first than portfolio. to I I to that most we've So invested in portfolio. in which last 'XX to. -- values if I'd of higher resorts lot that as premium are resorts part the values. drive throw that the in was trading mean you And I I general, trying hold guess to our growth all, well a know at markets. think the dollars are would asked you're But all at achieving, of for by those upscaling I indicated in our of significantly in And about

off So continue share. we we're Those right are of expect pay to and off. a lot gaining them now, investments to paying

have. that values really feel the we about we good So

a the Ellis] out and the earlier are community, Fisher brokerage we got and came this -- we the the team on heard, we I the that And need Tom information trade are investment moved and that to said our internal in assets team, -- going that Our our this upon the days. because we update were XX back market's NAV based lot we based assets values at upon market, the last from we week. to

our properties, Greg. include -- resort that So certainly and would

Gregory Miller

as I being an at taking least me, intellectual issue. not and place. curiosity mean, interesting my for more trends just it's just It's fast-moving

insights So try pretty My to there. I'll the be I appreciate follow-up, brief. all

And hotel that my Jekyll maybe if don't dealt in unique I'm you maybe city. driving distance spoke more metro, is why seat. hotel that of appeals Could XX call, from not You longer and a suspect curious its from by as this known a detail properties given Island wrong. the provide over maybe chose well as town some you major to island I greater the so seems broadly, particular I'm next But it's minutes biggest to on to the that you some to location? or the destination small buy term? about what

Jon Bortz

Sure.

when hadn't heard me Jekyll Island first I it. even talked to of either. about Tom it of heard hadn't I So

were we're than is And maybe less and much Simons we so Little St. Sea more what Jekyll we commercialized which Simons, was Island. the high very little found the familiar familiar Island, very which St. with and with end, are there. particularly attractive with but And cloisters a lodge

a moat Authority sustainability, to our we the research, be And plans big what trying us were properties, we've our historical achieve we at activities, thought we aspect Jekyll, our the on did as to of really trying focus wellness, according nature, what -- property so development been hit on those And really Island outdoor fact on go-forward that at system, gives was our that Island. expected is we on a to on of unique came value the that achieve top is including basis the for Jekyll very think what which the on limited they has resorts. to a

group of in so and or a the at major have group major a it's market airport So hour Jekyll are appealing -- case we an a Golden Jacksonville, to facilities large within if here or vast not That's a be, are is that of which -- don't Jekyll. the very resorts I-XX. like you've short when reason to major and is to not meetings, Aisles, meant strategic have more closer drive of way. And we and a is XX mean I or really resorts Island, Jekyll and Jekyll. leisure-focused a Kauai I you the actually that the is, minutes et know, Sea than It's cetera, very it is from close city really find to we think, Jacksonville minutes Lanai XX relatively got planning the that from of attractive. Jekyll very in It's that and appeal board away to small-group from to growing its is perspective being have attractive. will, is, we Atlanta. Island

happy detail another So more time. that's at Jekyll get in on on and to our view

Operator

you. Thank

Our is Hightower from ahead. go Evercore Rich next ISI. of question Please coming

Rich Hightower

I'll just Georgian, add native a Jekyll. as I that about all know

an indeed extent curious the I'm are look impacting XXXX, right anomaly? I labor in satisfaction mean the of to the me kind is what year. we about started anomalies of for scores stimulus that bottlenecks also about this but Maybe at on quick then before have last what now environment resorts. COVID should if So pent-up year, are you the lockdowns the question guest macro of leisure guys chances you like a called service, your in think especially underperforms this demand that leisure. think out just coming given some year And bidding, we where

Jon Bortz

Sure.

So be compared quarter through year. than actually leisure interesting this in We about believe next if on stronger to that terrible portfolio, first will Florida, leisure. it in our you question And actually the year even 'XX. think was

the first California, was May until and didn't for large in Coast for And most the four percentage West population vaccinated vaccinated months the been year. of a really the of fact, get the three, June. closed that's Southern part,

stress on and yet we We direct has think been additional on resorts the of the hasn't to think leisure probably stimulus, stimulus our $X,XXX part the the of there's to socioeconomic been about demographic. so desire the obviously, pay. the customer -- zero. road for the And is upscale the traveling gone while when upper nature that of the think think And It's rise also who in customer not Delta generally consumer, travel our the robust people condition financial It's the going to of the got leisure with away continue. environment, I we variant. of the the

continue economic over it's the do of months. activity So XX to Algolfact the not the only it's like next more robust nature course we given think later-cycle economy, likely early-cycle, it's XX that to than really getting actually but the of the increase

Rich Hightower

Okay. And then on the satisfaction... guest

Jon Bortz

the on Yes, scores. guest

guest much scores It's not across the I providing are scores, pretty making at been the seen I actually Key we say, portfolio, services we're all So a it's of where with would them, same interesting. looked I because roll the up. and spectrum portfolio pre-pandemic, in of And of But in in up. guest like we've markets. in haven't mean, markets West. alone level our a struggle those the I place the investment haven't dollars our

I So in is scores. portfolio, haven't think which to seen our specific more opposite, declining seen the we've we Rich. fact, generally And

Operator

Thank you.

ahead. next Baird. Our coming of is go question from Please Bellisario Michael

Michael Bellisario

here? urban all be what but helpful. you so don't you one information to this captured brought and me, in amenity have customer charges far you know provided And in would resort ADR Just ADR, any get What fees charges. for helpful, back the those was have on question back? maybe pushback just I done but

Jon Bortz

Yes.

it's And within amenities urban we've the some products accepted, customer. providing. I available percentage out had capture pushback to So we're And and has a frankly, all average higher with think which going because been the other them We where increasingly of things the rate, And are very opportunities not much capture markets. I that packages think higher either because particularly the our when it's were rates some were guest accepted. not the value customer, such to restructure and pre-pandemic minor. very the -- it's that in longer to provide and were fees of being no very, had the the to than in of of surprisingly interest be those and packages The products properties to our services swapped fee as the and or we've as leisure are well previously. services that different returned no to the limited well

Michael Bellisario

then all the levels And because it assume there? all fair if the of you you than versus gave, you all other is fair other quoted the don't ADR they that 'XX be counted, just that percentage it. change numbers that are would higher percentages Got that included fees that to those the are to assume fees actually get

Jon Bortz

Yes.

Operator

Thank you.

Our Shaun ahead. go from of next is question Bank of Kelley coming America. Please

Shaun Kelley

was bit relatively keep talk I'll hoping a short. of structure. could and little it change your I about margin we But urban gears sort

going mix versus of relative I'd recovering And just get made the forward, occupancy? like June. portfolio of much the that if rate versus outsized side you're your how going see in do forward. EBITDA of or little I $X you you that benefiting on of side? gains comment kind urban How thoughts is structure today then the think, margin on to And in Ray, I resort bit seeing from like so maybe a kind caught the there kind the how the to more margin you correctly, million in portfolio something much color are some of around

Jon Bortz

urban we June our if an think that margin over open 'XX. was I mean, in Yes. XX% of of we issue it's GOP urban XX% June, revenue I I at need. at our mean look hotels versus in

higher You half. than then the were but of by this June in less because fixed XX%. which in were half, the XX% year revenues because tack down were on 'XX XX% expenses, They of revenue,

And only so you get XX.X% EBITDA. to a

have leverage incredible you So there. operating

the additional have increasing fixed continue business revenues rapidly and and cover cities on as back the with high as these group business the on so reopened, both revenue. to pretty we'll travel a And gets back, come expenses flow-through road as increasing leisure citywides,

we're accomplished to ultimately revenues run lower the to operating the have able those and going levels revenue markets. been higher recover. these properties indicated get models as be as to margins They're in -- So at

Shaun Kelley

And that that share Great. other you your And some gains seeing share much markets how of you're or some payback sense I investments then especially tracking guys are versus just are on about, question sort how these you of either markets? have ask of the we're of been that and any side? the ADR these made, of of some wanted in taking one given to rates ROI in the much are the RPI

Jon Bortz

Paradise seeing In share know that Yes, detail. do that market $XX market so the bit But market. relates to $XXX repositionings and up, of in at more closer we get can these separately Mission a $XX part my something we Point improvements up the a recovering, L'Auberge, don't little there's bit lot increase and seeing we part are back to relates rolled competitors there's rate. a both that mean, from to at to in is Mission the a haven't give not our I comments, It's properties. I significant track of Bay most you clearly, and Bay, the rate in as and up in and We're Resort. the indicated probably it. that I to then gain a on a in little the rate. you

from be recall. more $XX between it think anywhere don't if $XX somewhere which probably -- to but have Naples, XX points points picking is can up I those So in I rate XX picking we're off up of and hand, share, I

Raymond Martz

which of why on programs. benefits a XX comprises that's the year, this starting over XX as properties, completed of this pretty projects projects. we're of a investment It's just a couple 'XX of reminder, hotels. those is from number Shaun, invested just We capital. which It's to about of these resorts. is lot million $XXX 'XX about are now With projects, -- expansive see not And a through

Operator

you. Thank

Bill Our next go ahead. James. from Please coming Raymond question of is Crow

Bill Crow

you peak that. should July. going lower has and accustomed it activities like we then July all what from rhythm Jon, the see of change. wondering a we've the your expecting the go seems are Or be travel the in down. And end And go and a every from this sequentially playing case, just that month-to-month And be out? It improvement we to But at looking how like certain about started year? might sequential do a we you through travel day, all year to to things sequential the and through gotten I'm data talking way perspective. every commentary

Jon Bortz

Yes.

probably sequentially we're we're think I probably August lower -- Bill, in and September.

in in continues the it's offices and Labor half late. first or mean the I general be Day. quarter. will I July think pick holidays pretty the And mean, through to But of been recovery, Day return, many Labor companies, a in of October. think up some a companies back is that I everybody's I lot companies. So best the later. major fall because know their summer month return, Labor actually companies a September talked materially, major for Maybe a of Jewish September coming are Labor about And the then business Day I gradual that back and the in from are coming we Day travel

very business those advanced healthy month. going been be bookings, way holidays, of with the do hold would some picking I I get. think seeing and we've And otherwise into probably in is in all business But on up. very is strong without second group think that leisure I any And get September as that we particularly Jewish September the what a probably the think bookings, we into might to early benefit So not we'll mid-December. terms roll consistent half be probably September, of of travel recovery October, assuming

then the January, in the year; see and 'XX. we'll February the against of we rest of not certainly year-over-year maybe where basis substantially that's pretty October on think and January up improvement sequentially sequential and sequentially, So but through again, continuing picking probably a from

Bill Crow

good color, That's Jon.

the as The be didn't whether opportunity far what thinking second or is, exit question goes this as presence specifically you're much question And the one Chicago fall to Washington, -- to school important overall on touch and your you curious or any the for school D.C., maybe there's hotels. are Washington, then on just groups of there, group how of book period. market to both occupancy whether industry or about starting either and occupancy sign an follow-up might Chicago D.C.

Jon Bortz

Sure.

indicated I So sentiment view our market. right Chicago, think a certainly pretty leave negative is the get that still as desire it pre-pandemic, relates is on view now to we'd didn't Chicago. to is We our accomplished. the And

convention be right a that year targeted forward year good now, pretty those to continue as planned. Next move to is, assuming

be now is be market. the in a a the best so know least from be but in a Bill, I going time on don't perception general buyer even has unless And period at that approached market, wait might time It current to seller to right the that a conviction attractive we little who that's get cyclical to more with bit, basis, of the right than Chicago. now somebody something a probably

I the the people up to for some to and of of generally are they to depends And and office opened, least to the it museums talk what hasn't federal been remaining Space. Air They're that's it any summer, went of and they That's attendance, opening of to it Smithsonian -- here, the government I come it They're with have at yet time July, requirements. the the and the online, return they've like Smithsonian highly the highly their there the the on As the want -- opening change they've visits. month open. done while museums limitations and who the no the said, end been work, available said, relates tickets upon unless ticket mind. eliminating which over eliminating market the them when the limited D.C., of being and depends

got I on continue help a that recovery plans. improve to So think we leisure announcing here. because such late the made other will market think But start the these people reopenings,

groups are don't it's important are stay expensive. back, government travel. federal don't to I know think think the in less there I rates the out the coming often be because suburbs So and going historically, much hopefully, market. important they group how business is the the school I fall, -- to

rates very in its So suburbs staying because the the they be what we And coming to -- it the is the in opposed where recover occupancy may of business and be to come to but the fall, are well the associations because and the person want that's city lower. as back market. they extent to to groups really in to return help all need government to lobbying and really

Operator

you. Thank

coming of Powell go next Barclays. Anthony Our is question ahead. from Please

Anthony Powell

Rich, to trip. was in I on there similar And familiar sixth a went field Jekyll Island, very with grade

I lot it thought. a nice good there view nature, was of island, So a

Jon Bortz

you. Thank

Anthony Powell

leisure question mix. your a Just on

leisure social given still basis? the it for normalized do strong the groups, majority stabilized So and room on urban markets, a comes you XX% pricing given kind you on the acquisitions, a now of or that is from resort revenue is leisure think basis, of your business given

Jon Bortz

or business Well, lot of little do with add lot year a I think when those a two a the Jekyll any of the I XX%. swapping properties properties piece corporate Neither to do bit. the into at where around think leisure you're having Margaritaville in York Margaritaville, up groups will out of. of of we've do to we really a another been ultimately speak Francisco does business point might and meetings, same there transient San I least New in mean and pick heavy an a there little bit. to do San and mind, two the opportunities so because leisure we -- food markets but one But lot grow as level clearly profitability keep pretty to it do those were York But not I there resorts. as up New we'll generates in think as the well, that's pick and Francisco mean, the on to a of beverage mix continue think pre-pandemic group at was opportunity a basis. and I of

Anthony Powell

property-by-property think it your drive Are room more total revenue just an portfolio leisure about your And opportunistic way? Or Got up? mix that trying you now? you it. to do is

Jon Bortz

it. we think more properties more have can we don't be leisure It's to want se. to enhance those way approach returns risk-adjusted buying not I be heavily and want Anthony, attractive in have a opportunistic, through will more heavily we taken to where or more the expertise. is assets about and really Southeast a really more in It the we our returns is or on we position want right. we It resorts really You're that per be

So perspective. definitely not a strategic approach from that

Anthony Powell

it. labor. Got one maybe on And more

of doing a kind mentioned employees your at that were hourly to managers lower used duty think on more headcount can and double use that that permanently of I manager bit a to keep urban your you duties accomplish. instituted, than something pay Is salary managers pulling lot maybe some a be a properties? of

Jon Bortz

it have month people middle to incorporate Well, this on I or level. where think properties continue operated when particularly or function. during shifts models year I we these managing there I are in levels, the to just periods. how occupancy it the the at certainly function at or think are of that to their the times we the do But think what we able typically operating is, we -- very think managers, week And be do place their won't low slow instead is are managers, fact now going that about

So property better margins as we through pull do think I recover. level efficiency the a will and continuing that, at change, help permanent that's

Operator

you. Thank

go of Markets. from Our BMO Klein question coming next is Aryeh Please Capital ahead.

Aryeh Klein

on acquisition strategy. following up the Just

wouldn't exposure exposure world look have And at just a to some we market? assets gross non-leisure-oriented properties from of to you acquire XX% maybe more you an Francisco. You you And recovery, work? post-COVID, guess would given balance And reduced San I given any hit across ideal market? the in your lull do portfolio where then that more prices maybe pace for XX%, would resort it's tougher here think or on

Jon Bortz

Yes.

relates mean, to likely years continuing markets, share in additional it's I diversification I cities our be the there'll we as So think as I target expanded next XX with few it drive-to particular markets some over resorts. think and to

returns a say, to So the diversification, to or diversification best X%. XX% it oftentimes, risk-adjusted want a I and we ago, over to sometimes is A long don't to little But gee, want if we have are, shouldn't wise have more surprising be market get don't we bit learned a be said, where best strategy worsification. members the we you want diversification. our or -- one returns of XX% time Board

period, to And go was almost back to people first now right bought of So then acquiring, our again, And us. 'XX we all relates don't you when case. as resort well, were to overpaid. there we all, during everything that's time think a that we're said period, way for it times -- that strategy any pricing, the and people XXXX I not can the

to the maybe have properties as to go a expertise to do things see it work where think It bear bring just up we'll values I performance helped that I market continue continued frankly, our drive ability And look to or to might for people our be and can relates expertise than don't, recovery. to willing values people where other improve think higher. harder to wasn't don't much we that we're willing other people other we do. resorts,

we side. would so market don't anything, the say, But going right at sure it. And on if to resort place the find not look gotten going I'm that of gee, anything. we're valuation way don't to to now, there we we isn't a find the And be anything has that's

Operator

Thank you.

Point. from Our Van Dijkum Floris Please go next question is of ahead. coming Compass

Floris Van Dijkum

and in might be occurred, have wanted resort think higher some some I Ray, your NAV and them your Jon on up imply your Obviously, of the up. that too. you about to how follow value for NAV you assets, -- made much comments earlier markets, ticking trades a

you those are that caveat, You you used view? low to increase insight? you paid up did the Can And me to gone Board. -- $XX any this you more strike with the $XX range. your share Has to publish let quarterly million with in beginning your convertible that us the NAVs. price value still year, of your Presumably give

Jon Bortz

Yes.

we mean, that feel each was the no the internal published valuing transactions and weren't asset comfortable from way the market is numbers. And enough market. were haven't them in by there's -- the So in just supported doubt, just there there our I transactions transactions reason haven't to we similar

a And I'd in Argonaut it's whether able NAV. we'll better up no market. the just And it's think the Mondrian estimates. a And But in educated it's as I'd sort there's supported it's They're I really recently. Diego, L.A. estimates to the many of is or downtown position, to hope, be haven't or probably Nines San say, we so have to as year frankly, meant until get transactions Diego, values of Fisherman's Floris, the doubt in gone of be in actual Wharf pre-pandemic dramatically. back an markets. aren't these they it's just the the values goes L.A., markets, good are not we the in them. comfortable with weren't -- out in resorts, or just values And to to be -- guess properties be meant within of The So even more in by 'XX Portland all back to X% today, just the they were San back on, where or sooner-to-recover more the those come

underwriting the were by or where a really confidence So has community, about from XXX part or the the and pace pretty they which XX, part over buying ago. last of the ours increased I days has year meaningfully and just more assumptions recovery on of of think a days, a there's moving the lot of buying really lot XXX the the on of community as forward XX conviction

Floris Van Dijkum

be then. Should -- correct guess wrong, -- know back values did obviously, earnings feel so numbers your that but estimate over follow-up -- share of the me you're talking the rents, I'm we expect is I -- And will more nature I'm you all comfortable about give that, are guidance? with your if you place, I you to comfortable obviously, given you my still today about than the going but more short-term I'm before values. if NAV

Jon Bortz

I would think we would, yes. I would think we would, Floris.

Operator

Thank you.

ahead. Our next go from question coming Grambling Sachs. Please Stephen is of Goldman

Stephen Grambling

perspective on And locations, is what's for redefining where and the value-add your its a at your of markets are of distributed going versus looking targeting? part strategy and Recognizing impact you're properties is workforce forward specific on decentralized kind that you or lens the lodging?

Jon Bortz

Yes.

question. good really a So

planning distributed And leads to you're think anymore travel, in not And when location, more travel. that when work seen are going interesting, certainly. extreme, than have maybe said we're more you're think about you and some to even in there talked both almost home. do they're you to travel a that more or off-sites that business going who workforce trips a more It once even to regional from meeting incentive having companies. companies headquarters where were in were I space, one is or more it's quarterly Stephen, the flexible At a have similar workforce, everybody trust-building planning often But now the reports, think you that meetings to location. strategic you'll leads to we've I and not and to you some and not bonding year. a to office meetings

Now quarterly, they're don't doing them more much some they because together. get often monthly, otherwise

home think location increases we from does to work of today or right? can as Certainly, allows your lot it travel. a reasons why resort, working do from in So thing hotel another a people home. actually are anywhere, at same a Technology you who the from it there's

continue which more think changes experience, romantic. think this which about And it coined all I pronunciation, that the allow more not I'm so sounds hate. less. of think, leads have better do will thinking or a we a I and little evolution leisure, travel word of travel, But bleisure, to do people in leisureness I these to maybe

Stephen Grambling

unrelated the an That sense sense. makes U.S.? refocused could what as from follow-up, travel then leisure international for contribution strong you in be to a the the And do have trends

Jon Bortz

are of But particularly two, XX%, when -- the you've maybe probably historically States that pre-pandemic. about but from lost XX%, they're offset most segmentation business, extreme, it you're United funny your keeping at XX%, thing Well, in and now a York, we're the our is of for it's not that traveling people generally. kind the runs wash. us New because abroad at a in And those

Florida affect local internationally in business not in summer, a we're regional wholesale and So different than mean I getting markets more getting we historically business lot we're drive-to differently. it get. will the but

we pretty to wash. complicated, opening people relatively I a up happens answer. sort of meaning as can't go mostly tell come here, up opening equally, have you to the it's But long abroad and it's as it I for think So and

Stephen Grambling

would for the can super country. And run. that quick travel weeks That's figure after one comment the you of around helpful. business But if and home a all taxi be two nightmare, out you Uber

Jon Bortz

Yes. Evidently, my is a Yes. very for days Donna, more Hawaii of these truck. mode recommendation Well, run questions? popular U-Haul that's in transportation. we have

Operator

is question last today Chris Please Street. Darling of from Green Our coming ahead. go

Chris Darling

go to Jekyll Margaritville a back and the for just I acquisitions Island minute. want to

the how baked your Given risk which think over curious the C you to levels rising risk then the time properties, those I'm kind that about location of of and underwriting. of extent is into

Jon Bortz

Sure.

very So cases, are away very, large far in very both as water's beaches an now. right the from are the properties edge example, the and

rising So trying at properties been focused from much find if we've that protection sea later, but more on much, that -- greater impacted impacted, be think they're as be look we provide levels. issue, we they'll will also to

go at certainly the been be at concerned to you at part the water I to because the property. at far mean looked about That at beach short And property. we The the so is at the and up to Hollywood Conference very boardwalk Diplomat, of it's that The away retain Diplomat, beach both exists it's you've way Citi at the would And interesting I if that very, whereas there ability if properties small. beachfront and property Margaritaville, CEO you that's the and if then it. from So that look this Beach, Jekyll point, the is very

way taking it and as that's So evaluating kind of a it we acquisitions. look we're at at the additional look

Raymond Martz

beaches, when frequency with just look lot it's it's things storms. the broad, Yes. of climate like it's factors at a not And change, Chris, we of those

at for age of because looking it's every rising we're tides But they happen take will some storms time does So the building, windows have, could the very sort beaches occur. of the the if comprehensive the that year.

it's and The with country, the Southeast look funny review. of have -- has these has fires, pluses very and Coast sea of each appealing now little is has guess, now, all their rising a the the areas. levels. so the Texas all minuses. thing earthquakes the West they has and The questioned So I rightly them storms, risk areas comprehensive maybe ice And we you which hurricanes, of their own

Jon Bortz

Southwest has droughts ... and

Raymond Martz

Yes.

at discussed So process, we at in we we discuss climate to look also and change look we does have something the have how that, and to at and underwriting our Board in, level. that's factor

operating it in So is in and hotels real that's something factor investing hotels. a in

Operator

to At Mr. time, this to Bortz I'd like comments. the floor over turn back for closing

Jon Bortz

monthly Hopefully, we of call. Thank forward late appreciates long on with to quarter rest updating this look And updates a your hung written who've point, in you again and as then those the the everyone move summer. on a great basis we third into thanks quarterly A Have to time. you. of our for October. you and again

Raymond Martz

you. Thank

Operator

this in rest enjoy for today's and event. day. you gentlemen, concludes you. and Thank We Pebblebrook, of thank your the interest Ladies your

Pebblebrook Hotel Trust (PEB) 31 Jul 212021 Q2 Earnings call transcript