PEB - Earnings call transcript Q4 2021 | Pebblebrook Hotel Trust

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

Raymond Martz

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

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

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

for thank years. last our hard teams for another industry progress work, creativity While hotel sacrifices, significant made partners the year and hotel We a two we XXXX road recovery. and their on was the and operating to Pebblebrook, challenging over

from Our the the portfolio continues to pandemic. phase their tremendous and growth recovery as following enter we efforts benefit

our tremendous over from same-property a $XXX.X by with a revenues This increased hotel or EBITDA hotel positive $XX.X million negative million. XXXX, our marked versus For EBITDA XX% when hotel at XXXX was $XXX million. XXXX, improvement

have trading share, trajectory started compared of Our still XXXX, we have XXXX, in million FFO EBITDA positive upside share. from past adjusted ended from of finished million at come. growth ago. summer. at per half we rapid during A a of it And XXXX to improvement per the Adjusted improvement And while $X.XX. second share generated much substantial we with was in XXXX, negative a believe $X.XX per $XX.X negative this considerable that $XX.X a we Adjusted again, at -$X.XX ahead, year considerable FFO progress work

leisure Manhattan. active. in are We excited $XXX Francisco and We investment completed two in hotels properties. upside million one four million the operating, significant proceeds opportunities. into of resorts all in San many sales, opportunities and more at asset very these across comprising with side, $XXX re-merchandising, We're over focus re-development invested of four the we these On of about acquisitions

more XXXX, liquidity On capacity. of million preferred the willing than preferred replaced increasing with $XXX million preferreds, our raised $XXX and We saving in in we side, equity acquisition less expensive dividends. capital $X.X million

liquidity, of In year-end XXXX. significant $X addition, any late drawn billion further cash debt our facility. until had debt over $XXX extended of XXXX, hand maturities, At enhancing liquidity and our on million and including maturities $XX unsecured million of nothing we we $XXX credit eliminating million on

Turning and pandemic. our total demand in our up was rates, revenues a Total and quarter, to primarily fourth to room further improvements business quarter to briefly level a revenues robust million strength at transient. the XXXX. which or same-property in our since higher XX% at period resorts the travel, of XXXX, This XX% group higher whopping XX% XXXX, fourth are results, due than dramatically both climbed continued versus below quarter XXXX to marking XXX.X resorts by driven best our comparable

ahead XXXX, -- down end same-property hotel of monthly XX% up EBITDA of XX% X.X%. XXXX, just just revenues best same-property were December ADR of Our compared fourth portfolio the versus the total despite Omicron. quarter throughout urban down in hotels show the same-property XXXX with with December the by the December since best by December with XXXX. be to recovered compared negative further performing down December Most continued in quarter X% revenues XX% urban the in and pandemic, Same XXXX, December, pandemic. to hotels were improvement for property encouraging the with saw ADR XXXX the impacts our trends since we performance the

variants. same-property earlier throughout ADR despite the in -- confident increasingly the of we the and month few exceeded caused trends increased XXXX. disruption we in Omicron ability highlights months last highlight months possible, by are a monthly Delta XXXX, we four to thought of than the Our XXXX in portfolio The XXXX X this comparable ago. EBITDA And XXXX, XXXX just our encouraging. These will surpass hotel later ADR are reach levels the

no pandemic. assume of expectations improved the these waves However, additional, significant

asset than by fourth this our Beach of hotel Hollywood challenging and increased up XXX% many up our resorts in Hollywood beverage gains Beach Jekyll Key renovated room properties, $XXX. a was $XXX or Even Island what acquisitions: recent versus start Marker in Margaritaville $XX portfolio-wide than best-performing our the service impressive. over price-to-value by of spots. more At in thank these XXXX new QX or from our average indicating Tripadvisor at managers Resort hotel included demonstrates recently. have quality or these progress Beach our ADR our And Resort, been and We teams XX% $XXX, or Del Club our and compared employees pricing, despite healthy quarter, acquisitions, hotel that two and Jekyll Mar up guests ADR $XXX This Since have Resort, West Club. hotel appreciate Our excellent level but in improved Southernmost $XXX, which of improved or were up our more XX% eight of has relationship. West the XXX%. increased providing. food was of has Naples at been rates XX% with XX% up In renovations. Margaritaville of prices, higher our LaPlaya up was XXXX even customer are EBITDA bears a and XX% enhanced environment. experiences XXXX, with the an properties, properties rankings more And feedback Key was EBITDA XX% labor reviews QX increases and or from favorable our and by was the for Island Each the

recently compared with than EBITDA their XXXX. Bay transformed quarter both San fourth Diego renovated the recently more Del Our Resort doubled and Mar Mission L'Auberge

markets, to Washington continue Chicago. our be of Angeles, continue continuing and see Seattle, are Los Francisco, and healthy terms recoveries Boston, Philly XXXX. In weakest These into to San Diego, re-markets in we San trends and DC,

by now ability best On our combination the quality to be basis our our have And raise our experiencing, improvements to perspective. group variant expenses from same our operating multiple we teams permanent material due San a reseeded revenues. of cost in a in in and early business management inflationary models despite and operating and more our cost with technology XXXX, pre-pandemic we ability situated XXX early in good to properties quality are to and both our significantly has reduced and held and our in efficient our bookings, associates. and many Healthcare eliminated significantly of attract back that demand the the our hotels properties January and of are new levels of revenues. like made pressures most in new trends. high profitable clustering late market-leading businesses to slowdown basis. million estimate The has we in operating on especially that remain benefits in travel. to teams in wages to trends February, portfolio we the to cross-training, XXX which JP the remain especially from was at staffing costing to the January canceled of the The wider in feel an and and Francisco, of properties provided are side, in hotels Morgan cost ability expense demand Omicron increases. We Shifting properties climbed encouraged the confident virtual, savings an total operator QX, Labor the In $X was shape well earn a challenges and unfortunately is more operating prices, revenues affords as with cancellations and which staff significant have January, We ray went operating points of we February, ongoing [Indiscernible]. over December, markets managed at our Conference gives nature offset future that

of or and January desire that same and higher in the of drudgery despite Omicron could Omicron estimated come and scheduled XXXX, a hold experiencing return other we QX and in seeing to property, within from before March to recovery businesses We their or person. canceled corporations versus as January to have one vast challenging QX, were This to significant about need points an for were portfolio two already in currently the expect impact quarter This bookings seeing compared rates. acceleration adjusted meetings RevPAR total at or and so February. and have or we're beyond. significant XX.X% in think done property between the total XXXX. in to same EBITDA been month hotel, and group between was travel same in RevPAR property to wide in total revenue down later are with and a EBITDA March in very QX Fortunately, $XX This million throughout down our rapid indicates we're is XX% XXXX RevPAR expected March. $XX XXXX business same to for and XX% $XX are QX QX into for January are and We result million. was city same-property encouraged majority February meetings and they improvement we rebooking however, $XX to

which compares per FFO in favorably diluted negative XXXX FFO QX share forecasting $X.XX, loss of of are to We per to adjusted $X.XX $XX QX share. adjusted

for is first stability FFO pandemic We a QX, profitability indicated for level and first to This as with outlook provide quarter comfort return to the the the confident the quarterly again only time increased trends. expect enough year, negative to visibility our the of since we're near-term balance XXXX. to in the the and expect that quarter operating be in we

assume starting the adjusted we year of our back non-cash period and Of operates both adding assumptions adjusted and no for compensation last amortization EBITDA note from results for year. Please current course, the will the pandemic. in these comparable to FFO that be stock the additional QX,

the FFO since their the change C corp's hotel hotel this in manner. and this report all of making are We and of rates most EBITDA

approximately comparable will more we've $XXX different and Shifting $XX.X XXXX, capital significant us includes capital industry invested in $XX.X redevelopment with during This we XXXX, into properties. projects. six our million and XXXX. million representing XX projects So the million renovations practice. redevelopment in transformation projects re-merchandising completed make investments capital improvement of this invested program, we at Since to change and

three as returns and these stabilizes the expect better projects to or generate demand to We over next XX% returns two years. performance

hotel, for or whatever significant second & the Margaritaville For the repositions redevelopment million final we'll investments projects redevelopments and eight Monica. Island $XXX and Major and Vitale have XXXX, Island & phase accounts either at of and XXXX, Hilton And overdue Resort Hotel to Paradise and of and Hotel planned, year, unofficial Jolla Paradise we this including our Hotel Resort later transformations District. major to underway Resort to start Viceroy Santa Jekyll newly Francisco, San and In Spa million next repositioning Collection are will Point to San La $XX and in million year Solamar Club Diego. or Point renovations major the as this Sunset projects. acquired come the our transformation will the approvals long Quarter, starting through, of renovations following on smaller upgrading Spa Gaslamp governmental have ROI San Estancia X Grafton $XXX Margaritaville Z which to Ziggy, Gaslamp of Diego capital later

value will now drive and We call I are very they over EBITDA significant these Jon. excited Jon? expect the With to will growth about and turn creation. projects that,

Jon Bortz

are particularly Business to tours, volume, has January Ray. of is rebooked expected took last Demand much than the Q&A. weeks. substantially bookings I'm groups be a which recovery a and reasonably and higher be weeks the a the quarter February break fourth out travel, firmed January half can since that it improving. few we that try in and point to increased turning get Citywise February group Most Thanks, larger from Group and meetings business second the going we is for pullback. noticeably brief January the and material done canceled in to have site in at just month. ago, better the to have so happening. rates. lead few so

last achieved per turned We February we weeks. just accelerated down in of to for revenues XX% be Bowl in XX% weekends nights. added rooms around has a as the u, million LA four million $X our at versus holiday West LA expect Pick and occupancy night up Super of well for XX% $X March around rate between and to XXXX $XXX in in out same-property two Both XXXX.

We're job. vaccine up particular, travel a recovery rate, level masking terrific to over three occupancy accelerating excited and pent-up already or next supply and and in in have will ground. a markets. and for next another in an costs provide recedes two mandates at hotel low industry, the years. from that climbed there from construction four optimistic at continue business did increased climbed in XX is $XXX to transient, and sensitivity way. will about a teams are over have months, of great costs XX last Any $XXX to to Omicron there There relaxed believe stats large that and and are growth. leisure we're our resort limited costs in seeing it and will years. March the seeing under climbed shovel significant at research alone. complete runway rate the group occupancy months three Replacement dramatically and new in effort, development, XX% XX%, extremely particularly business management lead land also year. and to between potential to growth have to the revenue Our deal our we're either eliminated. And price or of few new taking urban are per significantly. a years hotels over least We And the April. our in next and in a we four pre-pandemic continuing resorts be resort are the in increase no travel the and for After cities our development aid or demand We're business estimate dramatically replacement costs in Urban very currently business resorts plus And Hotel is now significant customers. demand. for be robust little as leisure portfolios high-rise When about great levels levels like declining Rooms have we long to portfolio, key. XX% and look from performance to and XXXX

the are to those Southeast, far-exceed on resorts, XXXX. particularly in in EBITDA pace Our their

For QX, achieve the million pace are XX combined by XX those $X by approximately or same-property And up by in $XX That's up exceeded $XX.X RevPAR with $XX all QX of trailing exceeded from Combined resorts QX, of on XX $XXX XX% and XXXX QX climbing end or $XXX or XX%. all higher million a resorts million resorts Southeast EBITDA XX%, from to 'XX XX%. ADR or month or million. XXXX XX% QX, EBITDA

a ways XXXX, full we XXXX the the we we be now, XXXX XXXX be XXXX XXXX help just to to and was taking though pricing quarter of exceeded rates. we're bottom on our will focused first banquets not fees, We exceeded and continue year, rates. still but very sooner, back advantage rates. resort administrative clearly of increasingly to This catering, us QX service go. parking, rooms, and resistance, confident, XXXX power F&B, charges. will have the line first and first And for pricing exceed July, lack numbers will for month get was

regain also as Even over beat from to throughout the $XX as occupancy could XXXX like same-property and March due year. by In estimated exceed with seven ADR over January Bowl. XX%. points XX% or ADR business is by have travel looking about February $XX by Super exceed it $XX in is XXXX XX%, on it track we QX to to more. or of or approximately XXXX

months at When have La yield XX yield forecasting [Indiscernible] Resort, an we Club December trailing year, we Margaritaville operating Jolla, the X.X% underwriting on returns from the and X.X%, Jekyll which already NOI at for QX all at X.X% X.X%. annualized at include Jekyll through it This is for this changes does terrific. for our with operators. but implemented and improvements, we're Margaritaville, our far Our acquired X. Estancia X% acquisitions were XXXX NOI and exceeded A before we've X% physical benefits look any Island

lot This invested our over And said, transaction increase recovers. Ray including and and of big properties renovations a few deal was redevelopments The XX a next in is major properties we're the seeing substantially will it acquired we've resorts we've where XXXX, late in Lasalle years. increased million through XXXX. from projects performance at demand almost transformational As seen in our performance since the $XXX these XX already work.

We're planning renovation Viceroy urban this complete $XX.X also at a undertaking per keys them and restaurant we're amenity-focused, unused repositioning And to there to Sunset Santa in Méridien In out addition we've this and Santa have a rooms completing We're to offices. throughout been in major we $XX.X of rooms Santa transformation former former the acreage conference two million Cruz Hollywood, of a creating space Boston indoor-outdoor return Santa Delfina destination. Columbia these million luxury adding in now event also in major mountains ROI projects, And $XXX,XXX the the pool more at and or its center leisure, as working to resort. rooftop the key comprehensive iconic both storage of of Monica, pool numerous additional portfolio, projects Le several Chaminade Cruz. And Chamine conference to multiyear Revere lease West Lodge to adding Mondrian former recent such glory Boulevard. five centers. a smaller then the the Monica on significant the and the resort on at for adding Resort converting continue are to it group to on new in Skamania property's at River years. of unused Gorge involve a redevelopment master Resort projects

of in alternatives. as add potential six have for believe And This additional tree consumers and of investment. the houses tree million looking for we the of master activities. experiential it's lodging XXX as spaces RVs, last of including the and plan, $XX luxury to at a year alternative million Skamania cabins, in lodging $XX We both With success much at farmhouses, pavilion we glamping, as Skamania years. couple to the trend units increasingly properties, this step incredible houses, outdoor with villas, five outdoor the the a first added

and and course. Treehouses, recently hole We pavilion multi-bedroom popular a putting luxury glamping three our very to additional a units, to already more host outdoor adjacent adding business and villa, large that commence social completed events will expect XX five

feeling So I'm we're some vibrations. can tell sure you good

So to call. portion Q&A now the like we'd of our move to

proceed. may So Donna you now

Operator

and Thank do questions. is time, floor we interest for yourself now In you. question the open gentlemen please Instructions]. that Instructions]. one the Ladies limit to [Operator of follow-ups. you [Operator one and ask

Truist. Our first ahead. of today Miller Gregory is question Please coming from go

Gregory Miller

share Thanks. your remain start with Jon, exposure morning. on and investors I to look meeting asking I your your CEO, latest Baltimore, San you evening learned Good city views Could with focused about you off market the hotel that portfolio were Tom leaders. there? yesterday as on Hotels Park Francisco, there.

Jon Bortz

Sure. thanks, Hey, Greg.

some think step little recognizing a all in and met smash-and-grabs I a I thinking made they'd we that with economic Tom we in met that with And focus I deterioration have first the think extremely I Mayor California walked for issue over I took last us And and the turning Lodging at bold there. had concern But population AA, enough. that had that in focused to got perhaps that So so been guess arranged Francisco. Francisco skeptical to concerned in she'd Went that San the particularly that. your the that And and of the rejuvenated local the and they Tom, the streets the a conversations in out focused that the the that really Mayor the both Francisco, I, step the Mayor in -- and increasing you'd five had early the had problem. meeting of yes, place highly but were Marriott in I maybe to on San steps issues a mid-December there smash-and-grabs were for the said Association. related Union away are And really movies. that on kind city that up you the as related the life speak is development quality -- maybe December. she frankly, I head that think could would they the place the taken was where a take lot and won't thinking Tom and alcoholics before -- environment and Baltimore the of like was the the by the And say like message, of from Square issues focus the and Batman after place a mass problem understood San people years who anonymous, -- with had on and we years that of the the courage that more the say solving of would impressed San not away, both have I meaning the Hotel around with fixing walked Gotham the met but of defined by and was and for Francisco fed up meeting, in be comics we first an little five went or police, and to in not we City and chief to took last only

but she later, police, original hands the And issues two have policing the weren't of make additional reduced state rules. supplemental health to in deal of crime Tenderline budget, out the tied that so later, been made emergency then weeks to and for with bureaucratic by two board freer for she budget -- mental her changes, of came and both issues announced to the a weren't the by request to set order which supervisors. of which from she by tied administrative had a local out had with came so And sort weeks hands deal drug In the assistance, District. in

is District. the emergency gets and she she it a and politics so more And announced -- think the really They're certainly active. think the I I the people Chief, in the as mean, that. result who gets so even city. are the enough. has I market, think become have of it Police had in of state shorthanded, Tenderline I changing in expressing And

think weeks. But additional funding the a I the the few Certainly of additional police politics. up board the think for the -- vote well advocating those to you've is population. in by of that which that, in of of approval comes hopefully for is community local supervisors, business a the a we're change seen that in next leads as as politics, sort of beginning the I change

encouraging. You then board in have progressive a members enough vote gained recall on San were three of June. in who education recalled to attorney Francisco. were put the very vote district to there a signatures the Very, of in And

by the dollars encouraged are health, are homelessness. of for very budget in attitude. we're change mental for So significant There out that the there

help. dollars will policing Additional for

get city where take we strong. to to while get It mean, for economy there IPOs. XXX we it took underlying to but to the the while going think get the And to were is almost where a I right now, to were. it's -- so a back a is so city

the IPOs country in direct of listings, last specs I year. the IPOs area. through the in were think Bay there or IPOs in area were XX the bay XX%

I XX% into including the think money year. bay went venture San of capital last to XX% the Francisco area,

the city really. beauty industries the weather the of industries and technology. growth all and the that continuing of technology ultimate incorporating are And So the the

we're As a the And first I long-term, make said direction. great feel be direction that about provided at which steps they it's place to quarter, encouraged issues, last fix their in point. this us like the

feel of good in against a most market. the happen we they've the the recovery restrictions the think way, there, So go businesses COVID marketplace. to in started I city about as And the and the which robust to back particularly very from wouldn't we in office bet as feel I has more particularly eliminated

will DC, slower encouraged, going Greg. and yet recover market course our which and and to cases to of the federal take well Chicago Francisco like a San here, So the many strength it's the other a that back we're in of pretty is office. as to government Hopefully markets a few who has helps of while be come to even Seattle but

Gregory Miller

It does.

correct margin pre-pandemic the gains from could if maybe above remarks helpful profit I was for I'm the of growth and that to from be your I and the Switching not room to me quarters The did growth. operating room remarks those from gains, on gears very was levels savings, for related appear you sense the more driven thought in from think to discussion an have wrong. flow rate for is we and your of materializing. line rate bases spoken it I about very, your growth prepared latest top out of provide takes. long-term and expectations. you that update. also profit significant inside margin point all my to should ADR balance who I'd you to to that room clearly question. particularly XXX Could how and puts us rates the model, get are from XXX several follow-up you with ask us prepared trying

Jon Bortz

Sure.

cost achieve future the few is going able hundred hundred of increases been cost bring will get we wages, increases But including think increases we in over going across to we're So right? is of the and and of there as it all are be to services, in two is we relates about and that what what I period margins kind it's And But of complicated and most then to ultimately trying models we've to basis to questions took at products years. the permanently know around, because costs compared think none that to us I out of point. because take idea what this XX. moving what in variables whole probably rates With including of a room between price inflationary operating in that increases of we the time. a It's are next of course, of the points hotels. increases do over talking pricing one a the moving what know our of the lot costs target, different

property that managed reductions. the we managers mean? teams on one we some we pre-pandemic. properties XX market but And big Westin The took So middle had or those of what set properties in a management two as team. if I believe that market so that mean, want we the it by collecting the more. million costs executive same many provide, of own basis is have points cost that probably executive the example more W annualized you dollars two if And had and clustered, combined out doing Boston, or those throughout the in that's of and It not which operating the yet out have the across properties, did in reductions we portfolio, now. long achieved. permanently, clustering cases, some we means fully cases, took even of And middle under Copley will, one we been in in of started basis. a nature our a

engineering, sales and was deeper HR, into the sort food of and teams in So and of finance, markets. where GMs to -- marketing. and because these executive We've of beverage moved we've revenue maybe management, gone directors many we accounting, started

of to increases because doing we've us have the portfolio and seasonally ladder, we we including more of any flex to more over the the it's climb we portfolio. greater staff quality make us and money where have staff, the in been skills to the structure, so which much trained, cross-training career out our particular be the take need, slow now allowed to And people to time, allowed in ability within permanently allows hire allows costs or them operating that us efficient better that moment, cross managers that hire staff in that's we periods a more at particularly it's

we materials, an you So we've combination benefits of said, fat on, when removal them include permanently the it. technology, backed and eliminated and collateral a got and take we looked on expenditure, now were at of elimination the the looked there things you that know ROI the good of what, services that wasn't of you where lot this of

the rate cost basis say is mean, it's what given So mean margins In by year, that hard that's to go? we for model more, I property. If bigger even I And for flows the occupancy, maybe occupancy we to just the upon way points $XXX more cost of at even I by percentage Gosh. at flows about percentage frankly, XX% a of out as better I Its XXX rate right? the because improving or XX% increase it Where to think XXX because any would taken revenues. the XX% operating for system. than is very hard model. valuable how we us. that's It's much flows obviously off you depending flows very percentage increases. able same same can't than mean, lower a rate, it's at rate know us imagine absorb and of more hard

went on January in there's negative in And fixed basis. the this of we've been talked acceleration last where anticipating of level And a we've this post-Omicron recovery costs bringing a hotel and a basis. and we've back quarters. we in see that We've modeling you been can as about costs. been certain So sequential EBITDA Delta the on couple

So but like very have revenues impact impact ultimately and and those positive catering January, we've people and that within will service our negative bringing throughout the on sales portfolio. a and additional managers better been the to has higher portfolio And ultimately bottom a managers banquet on ability conference and drive back negative line. revenues

next as overall forward. macroeconomic of higher at you move help a higher cycle, we the peak profit growth which think in with importantly before, will higher is were piqued can't really cycle which both versus cycle if we So this per this I than the where also I length normal before margins more last and cycle, we the of margins that. also than reasonably do peak cycle at higher key piqued the

Raymond Martz

hotel add a is XXX our But approach the XXX EBITDA none to you grow from but and a the can buildup do How 's we Jon of Greg, to versus from just about our we points comments, bottom-up think top-down more focus EBITDA as side. that's approach. ensure eliminate basis to we confident margin are your really operating side, modeling, model?

expenses, in we How we more is and to EBITDA, expand do margin hotel What the that. underutilized ultimate that's that? how ultimately other add focus look of which at it grows result do do that's additional restaurants EBITDA, of or that space? that? can grow for we how a the biggest not we Because rooms there? So we ultimately the what's what's the us, in or and remerchandise the driving do revenues margins function The really not it, it's

Gregory Miller

I very responses, And the detailed those topics. on complex fair Thanks. these are especially points. appreciate

Jon Bortz

Greg. thanks, Hey,

Operator

you. Thank

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

Bill Crow

fees Ray room. up the and I us income compared how of that fees you earlier XXX I'm forward. for points guys. fees kind of one and margins Tom, is if XXX guess growth to fee the resort in of important morning, XXXX, growth how basis you the fees XXXX, in resort and how Tom's could And curious to Good this in resort the just goal think of the resort assuming about topic going one that fees resort margins you of total of cycle? I the tell got growth for to achieving John higher brought in

Raymond Martz

we're resort amenity important properties. it's with to separate. guest different points, that's But has an basis revenue. look Overall, our of of XXX a as XXX, at fees little related overall do or part again, to you a bit nothing Anything lot

that services we that associated at different and driving We certainly look of and part side well. have their fees other what That's of host with and asset. guests expenses and all a the many as amenities

more having specific this, but [Indiscernible] and become seeing to So it's this. don't the are that, details again positive open I a providing more think it, to host there, the different of what others to is Marriott between we receptive are so brands we being of but want areas

So this is a it'll here. becoming we which enter new more good sign this cycle the think as I standard throughout industry, be

Jon Bortz

more apps Perhaps become accepted but customer. our the accepted. certainly by grudgingly, And

getting we pool market for of at properties, like of properties we but speak West there's our and can't for others -- think of four -- where for value way worth in times five or dollar So every look a every guest that customer we I the value, or is property try to these part fee, urban and the complex property, it's resort in of LA, provided. where or urban it's have important sort an as being of in amenities an the resort in a Santa amenity whether an Monica create

Bill Crow

-- fees total Jon, a what's XX% comparison of your a revenue to year number were last and maybe have do you XXXX? resort or

Jon Bortz

the But split out split lot out don't revenues. revenues. percentage it's we No, revenues, an small component just but of of a like don't a important those different is we it relatively overall

I X%-X% think maybe range in it billing is of revenues.

Bill Crow

pretty investors we far of I'm get urban good wondering little Resort very what's from market level going being markets. what And urban so going from a buyer Jon, trades, guess, Okay. typical one prospective of activity seller on just at that there's in on the is interest on but what's Sunbelt in assets assets clarity you're I valuations side. with more the and on seeing you a some prospective perspective, and urban comments

Jon Bortz

morning. good and Bill, you, thank Well, Yeah.

at, from is behind that play the worst stress, that the was to with the don't transition us. pivot demand terms maybe months. been they very markets is the you're markets, say I COVID all of investor The XX premium best the contrarianship, the called I risk to necessarily dynamics a where resorts they're can returns, there that for and course think of a looking cities becoming I a adjusted in? out looking a And directly it kind obviously remains it's the and where those I there's still there's where last terms some that of there a think people there the urban obviously are that's but think where get upside XX opportunity little in conversations at I'm And we brokers can optimism at pricing investors it want They're not more and is assets. clearly the having over for think critical to leisure -- maybe piece the deals. get And a of of is that potential supply of destinations where people, been is and -- certainly urban but and with is the about have are capital universe basis turning lot because in they to markets but there chasing for where now. it's there's looking from

to equity And net the so other of and urban. we're private seeing a of number from funds a transition high that number worth

urban of points, more the over we'll but of the is not would data and so say markets I pipeline see the what course coming more through year. emerging, I'll in enough the there's level Now, say conviction

Raymond Martz

are. lending is urban the to a markets still difficult urban a where resort the to are challenge It a get having enough in in transaction. than Sunbelt CBD locations still are markets Urban much obtain And deep the little for markets pool different more debt.

transactions, look I But thing. out a lot and all you more and you're provide that's to lot of so of be get Sunbelt it terms spreads. could start were maybe And the getting out in with resort But reasonable cash the lenders So these there's buying you're that financing there buyers lot lot P to capital pretty owners. out it's funds need of you it of one bids debt a those certainly states. a if sends in once urban at there quickly Plenty expensive. side, there more left works

Bill Crow

guys. Pushing Thanks. the color

Jon Bortz

Thanks, Bill.

Operator

Thank you.

is next from Smedes Our of go question coming Citigroup. Please Rose ahead.

Smedes Rose

the side. Hi, talk you And doing in to wanted about what could that's I fairly [Indiscernible] maybe and seeing you just hotels you're non-branded and you piece thanks. on ask of housekeeping doing a what side large are bit seems branded or expenses. hotels. I that if has you're on at It you're the side. to that seeing inconsistent a from wondering what message was branded me like little the been just going it's hearing what

Jon Bortz

came that of that Things our back full back resorts interestingly, pretty think any $XXX of -- service have paying properties, demise of I fact, or pandemic that or bit. $X,XXX in of and and service all they've any the the a I the at looking with who's the we're back services customer for at think are more Room they been room The -- we properties, service. while there for first our like quite people properties. higher-end $XXX about talked or rates, generally, providing have luxury are healthy is it.

was little more came typical delivery. a in cases many Now, like bit it different It form. slight back -- in in a a

Although, we know I fact, room don't again, back, that even eliminated at properties regular like we service. ever the in brought luxury LaPlaya,

are stay. what taken trying -- as gear is an approach do, all service think to the willing the been the they're not for for -- standards, brands And I what have the your I opt-in some Smedes, during customer brands They've So and to for. have what we've wants pay the services some same.

Some have an approach. opt-out taken

when brand market varies it's it well. by surprising, and little a city perhaps not it bit you're is properties. as confusing think I looking more And Sometimes at the

evidenced think gearing pretty I job that that the it's service think we towards I really portfolio, our our the fact done And good customer consistently think reviews that by I of trip advisor get we've the portfolio. desires. and across a the

significantly with than average our in is climbing which portfolio, spots X climbed we've that. mentioned, Ray properties think significant I pretty on more many

we've mid-scale and categories. and it sure by the does impression So on the it's I basis back. exhaustive that costs been question rate and properties those bit to come under property. -- and think if between little I back And earlier vary don't you going the, think come of get to it's of have you sort We when board. better not by And or We a in wouldn't market fully upper back. the to mid-scale, them an in in all quality I'm expected luxury then the so really we down, think back by upscale not think services come the to upscale, will, those margins the Again, properties. over I in

Smedes Rose

it was Thank us. you. it. That Appreciate from Okay.

Jon Bortz

Smedes. Thanks, All right.

Raymond Martz

Smedes. Thanks,

Operator

Thank you.

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

Michael Bellisario

Thanks. Good everyone. morning,

Jon Bortz

Morning.

Michael Bellisario

is $XXX,XXX I'm value? asking question your what's you're to replacement follow-up I on do to assume triangulate mid guess cost $XX view that your how that estimate. of XXXs? share does costs that call holds. your real versus [Indiscernible] Really what and key $XXX,XXX still to to X. But what you NAV, tell I that $XX two-part you How number your my question. the high does estimate, -- implied is by placement it per drive

Jon Bortz

change to the little word, flow. where only to market the has we'd two, yes, use move right do not cash given notice it. relates transactions. your cash Mike, triangulation, more, and that market to but data NAV But get range, moved, we leisure-oriented the now, Sure. on more have particularly think flows as the continued late a where probably you'll it's transaction properties, a like didn't We the little to a follow little bit on it urban

has we move Particularly we've course, couple next months. moved it side, on think will further our even market last the few but Of three we the in think had the a to of months. over four

we what In this, will see few over the fairly recovery we travel. As think a next months. particular, of be acceleration rapid business in the

to able might new what little the in be have way think has but to comfortable the to now, provide will properties perspective, mean? that what It's anything, updating what from we light, it, mind, I protection that it it replacement lot costs is feel in sort of is people a hope quarter we the as from relates a it think in about keep means next to if it So with market the do a supply same market. don't particular we be

because side still service it's on those into urban you competitive. providing full-service protection will an If select you're to market, giving not relevant be the rooms

gone markets, pre-pandemic. On Interestingly, some up to cost select the XX%. in is now hand, costs full-service the to of by where have these equivalent was XX% service the fact other the that

product think, I protection if can at values buy the and on in way big for positive cost the ultimately pound to compared recreated? of market a for as a space, it's recreate think to, it transaction both in price what of the does new versus we basis what of of per also being I something it that supply terms worthy people look So

Michael Bellisario

That's you. helpful. Thank

Jon Bortz

Mike. Thanks,

Operator

Thank you.

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

Floris Van Dijkum

Thanks for question, guys. my taking

your service is there's lot from guys side. question NAV equity your more. resort bit some the on the that -- sustainable continue to values investors expect on to in from private in little go we to if I resorts on a select in view? back happen going And the rates to rise values the will more is can a the able up getting to comfort Just in there? Is been guess Clearly, or side it the to and How growth push there? continue what you're plateau

Jon Bortz

Yeah.

but even I much. doesn't a underlying we moving outside mean, mean, I we recessions, right, in think the adjusted there's God, and is perspective I again, certainly feel an part down variables just resorts growth often there's by are then. many are going nature does turn drives significant of perspective. factors a I recessions, we you it operating flows from sell. cash economic it's Floris? doesn't think we and often, But how perspective, certainly that in view there Pricing turn in lot of perspective, think around often. some recovery we'll if turn and on, our -- values only your and and what how return And the that into -- question, a of it of buy what things and doesn't risk structural so there's of properties, down -- -- it It down, repricing. in I that economic And it give our leisure-focus

the there terms some period side, lack compression re-positioned the we've related gains alternatives been permanent, materially related cases to and a But happening to that's the resorts over of has a in Every four years are gains rate That's of is leisure you our the lot it's made some renovated resort the made reflection said quality, up these there hard that's look properties of focus in a -- the our in eliminated variables of to time. we rate. that been there for of a So portfolio. many of last share investments been one of resorts. third have or gain in think have that measure in I or some within the of here unique alternatives side, have of been because really at

market. if still a most but still inflation, that's didn't have have a of we all it we have we couple customers and of like been group 'XX even on through for retail significant books the at business where going look -- on those below year non-market given at the over lower the into rates. last And we'll past generational books to this the of us but be on our we'll on you but books, a that roll would properties higher business which growth rights to think year, rates and into had really year. caused moving pay. rates books you up course we've for brought rates, to be. sticks business the still will, the for transient the the with have and happening. not like didn't the the the we prior case significant books, like year year. that, year And that what this we will, if of of Estancia, been lot willing So lot perhaps We not was actually We have When there of because market, rates we go bought Jekyll would've the it, for into increases It's on

probably the your you're luxury trading something of I growth even that's forward these than resorts this be sort overall looking going X.X in is the cash what's caps it general, more properties. happened I are pre-pandemic And flows. pre-pandemic rates than cap trailing with some reflection range higher beyond will are can some flow, in perhaps think of rate those if a in that's 'XX, current cash numbers, but or be on we're rate. were maybe the X.X the to to segments they risk on values at to of market of at they muted think I think on X associated market. other in I And the more follow think X.X numbers, or of

thinking about So know. we've sort way the it. been I That's don't of

way. be market seen availability which as certainly I financing, seems as as versus private that relates it about are weighted values some Ray those capital, significantly. And haven't cash by is with think it heavily flow the get to said, of the of their cash influenced flows the recover properties probably to thinking same more to the

Floris Van Dijkum

pivot you How, to that Thanks you capital John. doing from Maybe more be or mean of do more be opposite? have how think that counter away the that? one going and capital quick will towards resorts? follow-up. allocating been the you're Does try You potentially markets to and that about urban sort do

Jon Bortz

a simplified sort by we've individual And thinking. by-market so of that views our risk, return for investors, should properties. of have and But we're what because we those focusing a what adjusted of risks risks. we So purely property on are type be about returns

what buy And underlying an so, no assets looked different when to stocks, have than ultimately of values the we people impact those on buy.

relates risks? said returns and and see And we of And those to looking returns. we it properties us, like as so things other Do reposition anyway. on We that have change property, The this can we more to we've commodity both where and those which assets risks value beyond people focused kind of be can the consistently. they at then are tend buy similar for where wait we views a upgrade it, let's value it how us, and operationally create the not physically, can are required?

Floris Van Dijkum

Thanks, it. Jon. Appreciate

Jon Bortz

Floris. Thanks,

Operator

you. Thank

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

Shaun Kelley

ask Thanks on everyone. putting you're bit me Sue. rates. Hey, Jon, Ray business on about seeing to versus what rates want just little a for I leisure

us typically rate So get what pricing business mid-week rate mean, color or about to you're you've there. what sort to it's one clear the mix. trying been positive out think in does but give about on more? figure is know back overall of I what you like get to filling is pricing. strong to environment, maybe forward just comments the relative you you seeing your how that The we have the able there broad gaps, the and mix any on other, I think But now, as can I pretty can Thanks. been it

Jon Bortz

before all leisure. about that, seeing, our call, from we're down which quarter -- in what recovery travel. in well what really and to It's we're we've the bit a segments, have we seeing coming of was look properties, rates, When X% is a we end But a When saw we're was to little it's Yeah. when from our whether properties, business transient, in we October, of even target, we sort data. stuff a urban as year, quarter went pretty a at Shaun, better can a at good -- seen down last ADR strong and mentioned whether reiterate, this December, might at down weeks weekday, When talked we but two been just week it's and the XXXX. the of all weekly it there question group, XX.X%. right? We higher in all weekday we influenced almost the urban up in which look we've the rates October it's I look at to it's the than good and really month of rates at again, business think got whether by And than for gets a the is trying our we've recover. to the continue XX.X% last anecdotal December. which look isolate we as December X.X% December, urban was to best That business from moving

doing Florida, quarter look San the it's perspective markets, from a are Francisco South continuous quarter, or these we its when but improved rate holiday and every it's has there week, again, at in -- whether Now helps, just they're different a of it's that each pace. a weekdays during by at so pretty

point, are the bullish, at think frankly, it pricing. going. will, pricing we've we're year relates which now where is a if you so this all for as is climbing this rates of why we So been And over saying to

even more we today So as pricing confidence business we transient have see rise.

it's to versus in well. rates than we group higher at increase year as get And we and then see leisure and re-booked rates and last booked continue see get XX. As

Shaun Kelley

that would Jon. Day over just margin service. a rates I of building, would about, head, are changing materially? it but different Super of vibe the sticking mean, President's $XXX the but the and I ilk, part there different perfect, reach getting any the my they same have then talked there be your of numbers to expecting be been strong, Just rate want numbers weekend, consumer? on think be know to And obviously, X get rate signs that That's call a a the suggests those the let's these number service sense obviously level you're anything because in pushing when follow-up are fatigue very out levels that consistently Bowl, customer have there isn't at substantial you're to of continued we required very or in increases was that the is whatever the the you

your just at coming what's thought President's on So there Day?

Jon Bortz

mean, I President's numbers, weekend mean, came I were Day was occupancy. rate weekly really it the from we mean, And numbers with up a I all huge. the significantly. published was perspectives. blowout

our fill saw if charging we mean, there's if check to rates. Shaun, you willing well-off those customer fatigue, still I back those in enough if that hotels we of are So there's spend the we to numbers,

And night. Saturday XX.X% so think portfolio over for the we ran I whole

you were And strong Day they But consider President's when ran then really and that well. XX's Omicron the an particularly Friday weekend impacted demand as for rates not as pretty impact we were being still the both New was traditionally, as in the strong, before. as think as strong by Sunday isn't on I And Day, for healthy, night. Year's. demand still Valentine's and Omicron was the

Raymond Martz

if yet, resorts really would like you booked spring break I haven't Which also mean you Shaun, host. to

Shaun Kelley

months My Right. break ago booked because but I XX get Ray. life saw. I don't spring lot. I a

Jon Bortz

just just of you're cancel Well happy we're market you one those we're below customers that if

Shaun Kelley

are cancel. you guys Yeah guys. get you waiting for to Thank I it. me

Operator

you. Thank

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

Rich Hightower

squeezing for Thanks guys. morning, Good me in. Hey.

-- in I top if the Just EBITDA, a there's million commend But amount, at percentage dollar And guidance. adjusted you terms. putting from a look given bottom. in I guys a the $X the one range large Small quarter. but terms in at for first stake on least quick of just to ground,

or And high-end landscape we're or hit got six or given? to materially What on so low-end weeks Just you've I that outperform materially understand think left the to factors here. that cause we've all five would the here. trying the the you the range versus underperform playing in quarter even

Jon Bortz

get XX% right our running It's XX to up from would to ran down a business property much. a upper -- and weekends in January we question, to than XXs where pretty February, for or manage And it's And we you talk are say them teams, really to from maybe go now period in as and moving XX% good these hard so XX% and -- way the the different dramatically, I XX% in and to that you it's weeks March. close in pre-pandemic. because

And going there's We're so we're lot may hire be a of people able to going We to those properties. not think when things on. may back at staff our adding them. or we hire

don't got more a to overtime We how a people we right environment to mean, spend, now. know to how are for So hard of they're We've to harder enough. have much is going how it spend difficult our are Expenses I to they're many going much groups. call even overall We lot much be. how very spend, much the impacts COVID, costs. going revenues don't out forecast run. business. how It's know

know made to doing and our best for basis. comment you even So because right estimate we're hard the we incredibly how imagine I can't -- moving And a even going flow think unpredictable pieces they're to all. And earlier about, just goes forecast and so now pieces, we what that's because weekly it's hard really on back be. is hard us to it's many harder to for which it I

and around honestly, So have a because never variables don't wide a that so shot just many history moving We through at are we so have before, our look outlook. any back We range gave a pandemic best. to we're been on. took we've doing we

Rich Hightower

Okay. that's you. Either helpful. way, Thank

Jon Bortz

Yup.

Operator

you. Thank

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

Unidentified Analyst

Allison is This on for guys. here Anthony. Hi,

urban seen hotels previously So urban were Resort. transactions talked the for in and trends about more in Atlanta. regarding like transaction We've you are you and in Sunbelt? markets Sunbelt Austin you What values seeing

you here more Thanks. could up So build this year? exposure

Raymond Martz

Certainly Austin. flavor lot certainly like Listen, Savannah, and look certainly some markets just have I like think of Sunbelt headlines, I the flexibility you easing the I open at mean, the what's demographics also at kind looked is terms I the happened the are in that and like investment Charleston, restrictions a also -- perspective. businesses of they're activity, day. that follow of think of of from of people and you think when that

continue Midwest feeling markets an to maxing kind costs, it's think or said replacement the West in markets be to better feeling a paying as relates But competitive probably how there's I maybe been. there's think given of as to the it think in those the that opposed replacement to I a as or maybe we of up in Northeast be it out traditional to discount relates as markets. pivoting And or Is a Coast costs to going a attraction potentially there's on they'll where before, markets? those a towards also some more I those there other up. therefore, the to markets of

Jon Bortz

that so looking mean, it, we're potentially any think of and we there markets the traditionally, of of -- challenge those understand the are of you markets Sunbelt just constraints some markets. think is part in -- assets at aren't just how I to I And about group purchase. the supply The markets certainly those evaluating the

over those at And challenge those has been point, has XXX for rise going migration in more continuing you markets so markets. because to don't been the as quickly, and potential as that years go into traditionally business while and don't up on much values have have has population come the the this which always migration supply Sunbelt, into much

the evaluation, risk from that's look Allison. we of part that So at perspective, a and

there market. yes, be we Union terms went think buying into we we felt so asset When Nashville something think asset find more an kind because I Station an that be like it of up summer had end in would with unique protection. some substantive. we where of kind supply do branded of marketplace. I can And Hotel, in it may a while that constraints maybe asset, we we think, the the Nashville some and and of are sold when those kind was And we than it where a in property in incredibly moat it it And we we the markets, typical it'll -- XXXX, bought repositioning in that we it's but of probably unique or because

Operator

the for Thanks Thank time. you.

for ahead. coming Chris Please Our from Darling last today question will go Green of Street. be

Chris Darling

morning. Good Thanks.

place from me. to highlighted you back Just ROI which taking promising, see sound now at ground quick to earlier, that lease. a I projects one subject very several going hotels took And that the are a

instances about in in So hoping that help do sense understand just you mind, with so. think may and when not how was could make those I me you to may allocating capital it or

Jon Bortz

Sure.

ground of the on years So the lease is, of also number ground the how it, long left owner it remaining and who the depends is.

-- governmental Service a leases GSA, San National our have of we whether authorities, etc. frankly, of of it's most it's the with Oregon, the the Park whether ground the lot So it's whether city are at Diego,

they time. any many we have we've so point done of And what limited of traditionally, are terms -- is in can at those in the term

to example, XX years. limited those of are markets, some So as an

I when every And like that point buyer that's the has we're to to owned term. retail, which back the Island that whether Jekyll we for leases owned of was any Jekyll for alongside governmental So getting extended we and an Island the the Island, a authority. get in for the point was State on by is many it whether the same feel example residential units of other gave we happened that all before traditionally, a like restaurants, ground couldn't every our lease properties island, island, Jekyll the go every will get amount and or when that where the of was number it of is extension of of it whether the renovation. hotels ground was Island that on authority, those for They we've Typically history ground the kind a markets of of on them. a Jekyll near Georgia. Atlas the finance Club, where own. extended I extended We'll to was were on it the a continue all properties whether were they the are at they all Sal bought an we market, that property by with And in lease

we very when those assets a conscious extensive where is there So look at in then we we we're believe assets and invest really assets when either additionally buy term. to

to likely with value, or to get investment the make So we're an going highly for back that the on value is the that because that we that process is happen the and normal those There return X. ground is extension leases.

Chris Darling

you. Got it. Thank

Jon Bortz

Chris.

Raymond Martz

Chris. Thanks,

Operator

closing end turn session, the over to Mr. This Bortz I brings of question-and-answer us floor like the to back our to comments. would for

Jon Bortz

forward pandemic. much also those Hey, And we monthly overseeing thanks and away. the you call thanks about and provide established days XX for everybody for that quarter our just look continue participating. updates during our very updating We first Donna, will to that's to

Operator

Hotel. you and your interest thank in for and Ladies gentlemen, participation Pebblebrook

The of and day. time at your You disconnect rest golf. may your this lines the of webcast enjoy all

Pebblebrook Hotel Trust (PEB) 23 Feb 222021 Q4 Earnings call transcript