Earnings call transcript Q2 2023

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

Operator

Greetings and welcome to the Pebblebrook Hotel Trust Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief 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, Raymond Martz, Co-President and Chief Financial Officer. you. Thank

begin. may You

Raymond Martz

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

Joining me and today track XXXth Chief And Executive earnings is those these Jon Bortz, and for congrats, this Fisher, our sorts Tom call, of our is you so Co-President of Chief things, Officer. Officer; Investment who Chairman Jon's and Jon.

comments only today, XXXX. To for start, July effective a today are reminder that XXth,

our include forward-looking detailed could statements under Please laws. latest securities our results our from risk discussion factors a may federal differ and for Actual SEC materially financial non-GAAP call. our to comments the measures comments. potential for during to refer website Our filings of referred reconciliations of

FFO expense the outlook. greater-than-expected boost We and of bottom-line savings our helped both reductions business end interest tax are RevPAR a to and provided exceeded interruption that pleased top growth, Operating report offset our to financial further lower-than-expected adjusted and results. while our proceeds adjusted to EBITDA

We points, a gradual over our business over followed D.C. and recovery improving climbing in continue the three with to both points, in six XX increasing occupancy by points. transient benefited and The properties. up Portland points way, urban up points, by see Francisco travel Los group led demand Angeles XX as San nine Washington, recovery Chicago increasing almost

keep the big demand Swift, during leisure Wallen. her, the Taylor please scheduling with cities love & loss events, A you recovering festivals, to contracts. benefited and travel Dead urban from generating also those Morgan we Our properties concerts, sporting big And and and Company, to pandemic. thank

premium helped by growth our upgrades year's quarter. we're rates at from second over our leisure and normalizing moderating suite leisure business the experiencing travel, Recovering the offset last drove and particularly with for -- demand X% to segment, and resorts. room room same-property RevPAR urban ahead combined This

flat, Same-property up with of total was growth Room X.X%. X.X%. non-room increase RevPAR slight spending revenue posted a

some and unexpected Coast, unseasonably redevelopments. as writer that cold experienced California significant wet impact the negatively we quarter, weather Pacific West the as well challenges film significantly anticipated impacted demand as the a which And and the During South reduced West strike on Northwest, in to slightly Los such notably from more from our that properties industries. Angeles disruption the TV due demand than to emanates and our leisure negative

And year. our continued weekend regained portfolio in demand, in from improvement our from over portfolio, a occupancy resort a throughout recover of or leisure our softening industry-wide a occupancy our we rise also evident XX.X% points to we Nevertheless, occupancy. marked XXX the in promising trend as despite QX to X.X% improving the locations. improvement basis demand an including urban XX%, prior in This weekend and encouraging generated was

are during the desirable market rankings the our customer gained our Our and share the hotels our of quality nature the highest our the by quarter service at ever of across provided operators. various and TripAdvisor indicating portfolio, properties

leisure and redevelopments, hotels have the travelers. attractive success These business of a to recent the achievements which to testament made our our more property both are

Quarter impacted installing by Disruptions various The projects and originally significant including points, the approximately basis primarily five in decreased issues, have XX Solamar. San from delays quarter basis Hilton we anticipated. Diego more these the Hotel RevPAR receiving about than during that points active redevelopment and caused disruptions XXX FF&E, Gaslamp

of by the San Hotel completed. Margaritaville delay middle conversion Palomar's Gaslamp projects, successfully Hotel transformation slight original to have be a Diego substantially to the from except been complete anticipate for August, our Solamar's All We Quarter target.

outlook through and line range. expense to Despite success taxes. some reducing with This was our same-property of achieved these increases in million continuing moderate $XXX.X property in our EBITDA efforts challenges, focused QX was operating

an X.X% increase QX efforts portfolio. experienced reflects registering were increases investments reduce cost and versus decline energy the prior to year the our This Furthermore, increase and moderate our significant QX. a energy XX.X% throughout previous in quarters, in usage more and in from than water

our difficult to side, limit June. On market renewal Despite we were the premium XX%. the able very we annual completed conditions, our to in increase property insurance property/casualty

We view positive and and there this of nature prior given a markets, XXX% have there insurance or the current are as experienced fact challenging who our we out coverage the largely that others levels the fact that increases many outcome more. terms, property maintained the

April growth, compared the and X%, RevPAR ended monthly by to rose same June to down May in was X% Turning months flat, XXXX.

LaPlaya, also interruption contributed and our for exceeding Our business positive proceeds to our of and $XX adjusted $XX from Lower-than-expected outlook. of variances our FFO forecast million million. G&A EBITDA benefited expenses interest to

capital During QX, portfolio. our to completed million concentrated the major And property across invested million over reinvestments we've five in at $XX the date, mainly $XX.X portfolio, we into redevelopments.

as largely The us from half behind major XXXX. disruptions enter redevelopments we these are the of second

and confident significantly the increase and years. cash are flow repositioned will upcoming in share We our months our market properties

numbers the the detail increase performance five for nonimpacted Gaslamp, at impacts operating would properties, RevPAR performance of Viceroy Monica, RevPAR Santa isolate reported. Jolla, the we redevelopments our the Jekyll to five the these is Hilton QX X.X% look Solamar, which Island, To we and excluding portfolio have shown La major better growth an flat versus of if properties, from Estancia

down in versus reported, shown and and X.X% to million we over have EBITDA the have EBITDA of quarter or from $XX of increase impact X.X% reported, an million XX.X% $X.X revenue, year-to-date. been versus over would last Total the second by we hotel X.X% year's

We Club which club, and Tower, The made and Tower House restoration Gulf being to resorts' is resort in Bay LaPlaya reopened progress each also XX-room and the lobby, month. The and the and Resort expect amenities also now restaurant Naples. houses ongoing building restoration are Beach repair, complete XX-room end largely substantial XX-room reopening of in with added the substantially operational, be by year. this additional of the the progressing, we of Beach

sale plus operational of two over to and the average a $XXX towers rate, an experience with noise rooms XXX the complete disruption at of resort available the the construction, managed XX% not offering rate occupancy sustain encouraging increase During QX, daily XX% ongoing despite a XXXX. average for guest

devastation worth before of QX that It's for LaPlaya caused the generate to million million projected it more versus by incurred. EBITDA Hurricane loss mentioning, we than $X.X Ian, $XX the

$XX.X business factors QX million BI proceeds insurance we've an in outlook recorded second year's a quarter. through losses. Our to-date, additional of And of this QX related of $XX.X to million portion interruption

sales capital efforts, in strategic start bringing and completed Hotel million since our of reallocation part asset $XXX.X quarter, year. total to Hotel Seattle, $XX the Monaco the of sales including of million As property Vintage Seattle we our the

the have of segments better maximize properties business balance returns. urban portfolio demand sought to leisure we and been have sales the All our to risk-adjusted as our

our utilized the During $XX million since common year. the we sales quarter, the strategically price share, shares second million at purchase $XX.XX proceeds average an of bringing our purchases per to beginning of repurchase of the common to $XX share

the from share. quarter of purchases the when our our of weighted efforts purchased in time shares have outstanding Adding at or of fourth the XXXX a at X% began, we million shares average of per $XX.XX price common $XXX.X share

per additional our our have NAV discount our value. available in website. a of per $XX And a estimate value table, which $X on share $XX equity that have repurchases its XX% to net over at We our updated is preferred This asset share $XX. contributed is million par significant based share we amount, purchased of on

and have we $XXX comprised more pandemic. facility. million far of our million to had credit Turning and $XXX in the balance over of we before our million sheet It's liquidity, liquidity, $XXX on cash than available

XX% at X.X% cost with average at debt debt our of XX% fixed stands of weighted unsecured. Our and rates interest is

of our result be upcoming XX our over property cash existing Our needed successful combined next maturities XX the with address our the months. growing available liquidity, if balance, will to sales to debt

to Jon? I'd like update, over turn that call Jon. with the And to

Jon Bortz

the I I'd share second Ray. within in hotel Thanks industry our industry about for been demand portfolio. some rooms color quarter, clearly what out. total the and thought flattened we've seeing In

weekdays a month a improve, trend was pace, in a indicator gradual recovery With industry's every albeit March. to weekend began year-over-year business more the in good for in of demand the down that while at rooms quarter, continuing as travels' continuing

believe We major not rather, reflect impact trends or factors. concerns, indicate macroeconomic but do these an issues demand slowing primarily from two

are traveling than of sailing cruising at with the Europe, especially same full believe the abroad, that reportedly last to ships this capacity. travel We as sort year. as we domestic comfortable now again, with travelers more business much year revenge leisure cruise benefited represents last well First, believe hotel

that benefited last from true believe the numbers year. difficult underlying re-bookings to we quarter from related somewhat were quarter, the second the Omicron Second, the demand year's thereby because significantly quarter recovery first comparing second we're in of more overstating that comparisons to last

likely more next continue the believe year's to travel While year and international this demand levels, late to cruising travel likely year. revenge this we it's for factor will normalize impact and outbound

that year's the As difficult induced we we're Omicron additional mostly last it demand, relates past believe impact. to to comparison now

every be an last that easier month was the in would trend comparison be in it for to last July month. with date. for up believe down ahead July most If numbers holds entire from to the occupancy occupancy reported STR We industry showing year-over-year recent the already month, improved may quarter show of beginning when

increase benign, come. expected for don't to was quarter, some quite year supply the and X.X%, we growth for time. is In continue industry many second and positive years a of be it the supply for rest to to creating the to for strong this materially expect Fortunately, industry tailwind just

In to of availability the values high supply financing returning cost XXXX development cost growth the fact, as later, we potential and challenges see yields until or given to even compared of construction existing and with level hotel X% don't industry particularly for the properties. construction, the and

second up group well room in X.X%, second so X.X%, the last ADR total group up business and to year's group of by quarter. continued ahead Pebblebrook, revenue with recover For ahead nights X.X%, quarter

and occurred X.X%, such less which transient The insensitive Transient premium at year's view domestic resorts the due those and still generally to lower while splurge, causing transient nights suites from was to decline consumer. substantially that being rate price a very revenue have decline in in relatively was demand and our and average ADR a year-over-year down with benefited are rates strong what called which rooms prices, we rooms rooms sold primarily rates increased overall lower room compared sold, means fewer last as revenue. achieve

a Year-to-date, than resorts rates Yet by transient, at by to channels in is rates declined or as gains at a The our some which rated have of typical was half premium they group through remain $XX.XX. made our lower XXXX premium occupancy caused XX.X% ADR to $XXX.XX. occupancy wholesale such and lower or decline gains weekday international. or of resort also very first robust XX.X% at our resorts the

demand as has slightly regression encouraged achieved but expecting so, since from in the So, or resort grow normalized. doing we've XX% will rates that remain our about still ultimately the math, these We one-third resort it's our rates our rates than much resort regressed portfolio we XXXX. peak ADR premium from better were higher

of years ADR share gain come. higher resorts to significant last investments this to a in of strategic competitive is and to some And direct more markets our the we've RevPAR gains very share their made the gains over result capital reposition due several with respective

our the even with in fact, point redevelopments In to total RevPAR on XX impact in this gain QX, quarter. share five points, the due portfolio's to negative managed approximate RevPAR case the performance XXX-basis our portfolio in basis

cancellations result a quarter, issues indicators macroeconomic we've one not good. far, and demand at a so meaningful any so attrition. of of be concerns, yet increase look This we slowdown as first or would in in the the third broader observed of As or

We're portfolio similar do to in discussed. reasons to three QX occupancy over so as our the that as third by quarter for it's occupancy the points, a all occurred increase decline previously as much continue will but likely for year in rate average to two at forecasting currently last in

basis. booked some year combined advantage less third and is pace ahead on and X.X%. with potentially likely course further book believe shrink to same pace having and nights room group have group ADR last revenue as quarter of Total the likely transient a for this transient revenue to ahead out, We of is shorter-term by over the off quarter by time X.X% the X.X%, by

in year was less quarter the last than the Omicron prior the took place bookings strong of to QX quarter Our in this quarter year's in the the QX bookings that year, for last but out second we're as wound half. due were some into first down of hoping

Omicron year-over-year first comps quarterly year Fourth the the last the and the quarter easy on to the pace books growth. strongest QX to hold been last to has of should our quarter with continues quarter be up, the strongest economy should And growth year. outside year exhibit continue compared of

Bolstering Currently, year-over-year with number optimism over year and with same nights for pace ahead of quarter and our almost Boston, in X%. revenue for the fourth quarter, up across pace room is calendars XX%, San by our fourth convention XX% Diego, ADR last Washington, by ahead standout are strong total cities by Francisco, the time of very growth a San D.C. our

is Our They're QX these business. year critical of group revenue last ahead indicators. not for by guarantees however, over It's that time figures realized are remember, pace to of pace same XX%. positive

Of course, and it's a better better than is when by a up lot they're up up, by little.

in versus slight on it Recent of the to has same-property prior rate month, due around year. short-term to to pace X% July, all been travel dip July the July particularly occupancy terms year, for leisure. activity X% a of compared In up be four encouraging, summer about booking we points of RevPAR, anticipate in by last is peak as with to

outlook QX X% range with but still up the be X%, in to XXXX. compared RevPAR minus prior likely ahead it's projects of of quarter to Our year same-property to the be

We expect declines versus slightly in by offset occupancy year, gains ADR. last in

from of being Our Hotel redevelopment Solamar mid-August. and forecast the for slated Diego, substantial the Gaslamp in which is completion of Margaritaville San into Quarter, reflagging incorporates last the disruption converted

Additionally, best impact in estimate in potential the actors ongoing Los strikes of which and in we million much estimates to as and concerning factored in as the $X we revenues be writers our $XXX,XXX EBITDA. Angeles negative

strikes are insight meeting. Currently, understand into Of these might not we we sides have course, no two resolved. the be special when

service the at expense a growth including filled expenses in fourth but over rate achieved come biggest in last more positions hotels half, from to lot our being occupancies normalized the this the the be through year were continue able would to higher should second in the quarter that year. as growth the levels down yearend, to September third On side, quarter, of getting in year-over-year should decline come

made and it taxes. progress relates is as be and As fair property property Ray property to we've to is could the continue energy reduce successfully indicated, assessment. long involves reductions that state process process, a achieving litigation we challenge local and required governments. for costs, It achieve in and tax a assessments very to our The taxes sometimes

very As a to result, are difficult settlements results unknown for or forecast. timing the and from litigation

in based to for continue our estate of However, years in real success will and obligations we lower believe our reduce further inflated future, number This in values. cities. over our that and prior tax our time we'll have paid a the markets, on particularly costs true-ups including accrued

XX% our this today The of for our Ray and and premiums the $X.X our end as June May in increase biggest headwind new year. premium Xst with increased policy cost insurance through our casualty a property of is coming represents year next in beginning cost. running in The increase a mentioned annual million result that

Moving disruption to us. mostly is this our year redevelopments, behind for

the last with just conversion to Solamar the excited impact EBITDA over about the coming we're it's We week and slated QX expect currently of fantastic, in San looking Margaritaville toured in of downtown very to Margaritaville XX. a August is million the Diego. about cut brand for property majority We that $X and completing from

the We also which visited and had toured advertising exterior customer sold with beginning wraps out, event covering Gaslamp, and the the well-paying Hilton property Comic-Con, of jammed activations, was at we walls.

a Diego be of now The able Downtown share Hilton. high-end to given overall these looks superbly located should the both quickly hotel the fairly market. lifestyle-focused like significant brand-new of gain properties San at We strength

and and had already Estancia is last We and and meeting and Jolla recovering having repositioning. success week, new renovation Board La has from its lawns our rooms it too the there event quick all Resort, fact, also toured in

property is ramping for quickly. also The up a doing proud that record off this July. should all-time to was team upper in an occupancy the back such revenues track month, and ADR job Estancia team so XXs report and the on total Hats to resort great hit for to achieve the

also very encouraged $XX.X very and also two-phase Santa is in Monica reaction million second repositionings. both and the approximate we're of by $XX the redevelopment to quarter, Viceroy substantially redevelopment these Jekyll's customer million positive completed were

completion of portfolio opportunistic projects, the LaSalle and just in program the finished about redevelopment we're that opportunistic several we've acquisition of with last within these made came the out the With strategic resort of the the two years. acquisitions

through remaining. year. half We just Resort and have midway of Both to the and commence Island and fourth this Estancia last complete redevelopment the second year's in repositioning the Jolla Newport expected first of quarter project the of quarter Harbor La next and of be second phase the are

be projects these to main have performance to due redevelopment coffee on lobby, from impact should impact and the with minor of shop, expected operating the small, some ballroom. he Estancia pool,

no the and month March, we impact material Newport redevelopment redevelopment likely And and low negative expect EBITDA of property the demand period. typically nature scale every due given the comprehensive property levels the has from the the November we're from through project the to Harbor, during and close to during

we'd to very while overall clean couple As share disruption gaining many in the of to given be physical at next strong be and the of of repositioning our a result, financial expect any redevelopment properties material recent same condition of time, our portfolio. our so our we'd over the the years, results of markets, expect

of our today's in to our high-quality have capital added with properties, very a due markets operating debt challenging difficult and We'll customers capital condition, the starved of benefit years in continue which that excellent be environment of comparing are others to markets.

that portfolio should competition. environment, uncertain the effectively future, in and in redeveloped, a While strong. We a near our outperform economic very are have fundamentals remerchandised operate particularly we currently repositioned, fairly newly its

for that pandemic and be will upside to come. still negative a environment the from significant from We're the recovering highly in supply-constrained in years have markets impact

tons creating experience is a with of our most the through shareholders opportunities. management we team laser-focused that value And have attractive capital for reallocating on to

creating prices of a remaining today's common significant and significant their those par portion shareholder selling Currently, using proceeds a and portion values. current or at the leverage-neutral preferred value better our properties involves repurchase discounts basis. shares using at our on or to then to market And to reduce debt very

turn that, question-and-answer we may back with the our can Operator of With call. you Donna, portion to call proceed with our to Q&A. like proceed the now the I'd so

Operator

Instructions] you. for floor open questions. The Thank now is [Operator

from coming Please Today's Dori first Wells Fargo. Kesten of ahead. is question go

Dori Kesten

Thanks. sense have convention outsized you give translated into what on to Can be for of give growth don't rate potential? you extent how I to time? should some we of QX's strong us, calendars a guide us over Just know, thinking

Jon Bortz

market, there's compression I compression in a Yes, be in mean, the you -- I to And tend we large don't side market, over higher general period rates time. know for math the if that I'd size to depending at any -- additional to convention, our the is average but premiums things run on to our it's this well able convention on drive transient when significant of medium point, as than our two then rates. don't have tend note I

least those to business certainly typical versus The how days. days, premium than run, with XXX% can of numbers much depending higher could for outside a often can convention, group on to And at the day. XX% it taken those say more the block filling much run group as as block, we've of big XX% be a upon I'd XX%

question, much in do factor convention I the there'll It should pressure in because on better calendar on of point the of think the QX. in quarter be rate the average And quarter. a in less your better portfolio the be fourth to

Dori Kesten

good portfolio? fully the for run -- rate a what's a renovated What's

Jon Bortz

Run rate -- in terms of

Dori Kesten

CapEx? of terms In

Jon Bortz

to CapEx? something looking million million. of In more like terms $XX at Probably $XX

Raymond Martz

CapEx should a release, the as over portfolio a the at And Dori, we years pretty least Jon been of of we've the lower couple than Because, the lower rate. CapEx be over typical in little will run indicated be and near-term. the detailed The significant. our capital bit next amount normal invested maintenance in has press

Dori Kesten

renovations, EBITDA recent should years on ramp And the maybe from Okay. the an yield few how then think perspective? over the up next we just of

Jon Bortz

redevelopment a the market of and pricing. numbers usually adjust I in -- four numbers it on the particular. It go three we pre-renovation markets quickly from our shooting Yes, depends maybe to slower, how mean that dollars to years, really on are we average XX% cash can renovation average are about to about dollars, yield takes on if the

The by market. pace varies

because do business Estancia that convention-related held we rates Some can by we future most of we're markets, back it do be books within of don't are months XX for not good books A group group on our years. would and quicker the arrival. example where

we've rates San many for in quickly can a increase can more convention two property in Diego, say in a market three downtown we that, rates like, So, locked like then where in or in we years. cases

we'll to be of able adjustments the increases some in but to Now, properties, to case. back the get authority of markets that the convention the the investments get by those because client always and going made isn't

of way So, it's that pretty generally is easiest mean, the think four three I frankly, years. period much about over evenly And to to time. it

Dori Kesten

Okay. Thanks Jon.

Jon Bortz

Thanks Dori.

Operator

Thank of The Rose ahead. Please from question is next Smedes go you. Citi. coming

Smedes Rose

Hi maybe I and to increases wanted ask going It bit rate. of sounds how more the but forward? shifting margin like a well. margins you're would of occupancy concurrently, flattish, that but little you sort is bit about a easing, lower as you're like cost kind on pace thinking it That with is of higher little RevPAR weigh thanks. sort seems just of on like seems

-- just wondering envelope margin? any there's that if of that goes sort do back shift. to if occupancy rate was on up maybe and what of could goes of does kind the you down, If I thoughts

Jon Bortz

quarters staffing the that's couple first margin on of what see full basis. year. year-over-year of as our I we'll over levels seen think more last degradation And up on towards end you've done a here, to that seen brought and Well, we've margins what does margins staffing we to the

started when QX last In in QX, started lot properties to have filling success ought of although our positions. because September really is those we it we the open in to than at year of a lower re-staffing impact be

are would be terrible time, that the the more think occur. necessarily moving normalized And over resorts it's to to We I trend that's if that were level. really think a think back We a long-term don't the obviously level, think by maybe XX% good to higher stabilizing, provided, I my I we likely numbers a indicated to here higher where than were XX% we're XXXX stabilize as news with that rates. at is, far in we're case.

the well And here back, come catering. for help, it marginal why cost fully need flow volume. is as we temporary as the of we're folks but it's doesn't thing second which rate, and the flow to is will better, Partly occupancy going banquets of well outside as to staffed adding flow

So, I you'll do shrink get the see quarter, think degradation we towards margin as significantly. fourth

cost move we our into macro year. on course, upon depend That overall a will on with And next year-over-year happens basis more as think we'll that perspective. from the year, going see next normalize on rates environment. will basis. And demand And an of what I depend will what's

think help outbound next next feel some to recover we that continuing demand demand some that in of from And the travel markets. think a as of that's should the year, perspective. sort cruising, we to good basis that, being revenge domestic. being, year as well demand We a particularly think I international urban about But reverts back on

think of recover recovered, we that have that's yet then And and fully not next will international year. to we a continue lot inbound

that grow to All us allow occupancies year should and of next volume.

that XXXX for need it's group XX% pace And shape. well really flow nights XX%, our properties. our level We're for up to at we're levels Because in volume will to that bottom-line. With year. the need come to at staff a next good volume sort room more the normalized in right of that back higher that support is that pace, now, to the over to not have get we of group we almost fixed we coming back

Raymond Martz

all but on new had tendency And current think assume a really and add also lot a that, of there's we at to a the run food rate. and you renovations to is, because in out of to carve beverage. created Not margins in the look disruption. have think quarter, quarter's And I I just that's what the to that RevPAR, Smedes,

the When also when impact. very can't difficult. group and Hilton have you quarter, really have look causes Gaslamp the hotel under Estancia it's construction, at you during Solamar, meetings That renovations this or you

in conclusions rate. lot noise in indicated. draw wouldn't there, QX, as food beverage about There I a and a is run that example for and is Jon margins new of

our and normal and As we will of XX% demand given also stabilize to fixed points gain a our we're still down nature segments, XXXX, properties. as help occupancy about down, margins we mix, lot cost of have that those the

Smedes Rose

it's kind at which hear other in something urban also just see was weekday from is a Jon, we pick and nationwide note something could looking the And second companies. more gradual I rate, -- business that of ask by you you numbers across just the quarter we I but that of sort you Thanks. mentioned transient, to did business continues it up driven think that

going wondering, away? Maybe of think just thoughts do gone business initial would particular in anything that your to is slower attribute I'm you recovery expectations? there. And Or transient think you Or it's just relative in longer? you do there take some to slightly just to it's

Jon Bortz

X.X% think slowdown above. the in of market I my rate probably the the recovery mean up by year. weekday And it's No, over all comment was I our industry the related about of than way, occupancy more last us. to so business urban the

We continue picked points basis. to a of It's growth on occupancy. a we five see really over X.X% percentage up --

recover their the coming know four don't to travel. in business think slower cities days, days. be have the to to in, is are where Businesses been the some Obviously, It no in-office different to of the all seen to we particularly office to and requirements. still we're with yet to I back. end that up changing We've cities, requirement it's three factors. go go going

Some have five gone days. to

particularly are people on least week. and leasing now went West space of back office a Coast, announcements none and the bringing to companies, We've seen that at three days

traveling. it's point where just end we I to figure think feel up. where really past again think We're I little people in early a the out normal

still are that masks you leads think travel. but the back here people normal I see mean in pandemic, and to I forgetting and general, there,

think definitely some call to have perhaps leisure. what by We it we've continue perhaps replaced we permanently, I lost see called hybrid of travel, it others gets that.

don't the One seen holidays probably little business business of there because the we connection generally slower not recover back travel are people over to longer to but the trends going we've back And business if they're book know flexibility follows think holidays I up, again. all taking that as you around XXX a is -- to how and GDP. at yet. have is more we'll it's last that end is look years, office connection,

Smedes Rose

it. Appreciate you. Thank

Operator

coming Thank from you. Raymond is The question Crow ahead. of Bill Please go James. next

Bill Crow

Hey for cap Jon, in rates in I a I'll cap for that and you one turn Ray the rates then you, low what your in second. in was the San Francisco NAV rates good intrigued then and But cap on the by think and thought calculation, were I morning. Portland used Xs D.C. Washington, to I

didn't cap didn't to Xs. have NOI, you you would be so have to what, the in also there's two rates if some, today? buying in XX low My question back San at I when buying a get a I you And pay not buy debt, conference much down calls were in put and Francis, is, terms, you I stock, if or desire assets it, desire guess Francisco rate to remember ago San

Jon Bortz

returns of result to why cap analytical of for. looking they're are a things. kind a and that as a couple property a buyer buy they much the total of what more decision makes A rates Obviously,

look at are We cost. Just you're look price five-year There replacement a underwriting. a you like comparison different in at look to at key. do, at lot We cash of flows. We look five-year per we market things right? at when look IRRs. We

not determine changes. We nor don't time use the markets cap do yields other unlike buyers cap rates think to rates. value. do and rate types, and in the But decisions we use at cap determining some those property yields methodology They maybe in is a overall look for growth over frankly

more become I of the about things Pebblebrook. some we your be were shareholder question become in so started markets has those when oriented market question -- short-term challenging your is to we has To than far buying markets, one about public of more would the they public the in think

portfolio I think started creation potential long-term company. at within we look they're the the they were XX ago asset less value willing than when to years

think like to a for our be a I buy I space company therefore, we a us of becomes in company And as there. where in would markets lack harder there's public know that it buying don't yield.

my investment I which if I if personally, it's great in in personally just time not, these I opportunity markets. I a think buying that long-term had me do horizon mind, to be think were returns, so it a with unfortunately for keep the but

in that XXXX I market, in think replacement they're incredibly XXXX cheap. it when The I a justified economically when buying. and be discounts which is indicator started than bigger of think an was back cost, can to supply is much we discount

I think great a it's time.

If with you you live near-term low horizon, have the can in the debt expensive right time with yields.

for a it's horizon, a it's long buying, so great think if I'd challenging. or company, personally, us I somebody a And as think public more had But time. I be

Bill Crow

I Two get thoughts that hope. Jon. I'd Yes, your on like I BI. quickies, appreciate to Ray, insight,

the thought than would over left quarter be wondering from us was a what for have And at would guessed then to what Third guidance higher be from, you looks I'm fourth of an like, can if your quarter year? we next kind and in so idea, give then seasonal perspective. least,

years cycle renovation And an disruptions? up program, then to no actually seven I'm to quick wondering is, if you you're kind new have going almost the wrapping into repositioning seven do start of of time question, begin? with period second this massive are we a Or extended hopefully but it. strategic years, see we're

Raymond Martz

our result with on the say a progress to negotiate It's have believe a That's here. we the number we we that's of what of get quarters a carriers. We submit and hard to the insurance make without with first, have of any BI, would storm, sort Well, -- hotel the exact done that. we we'll second future quarter, result in carriers. really our In

Jon Bortz

upon while an we more and been the lost than at thought. I it's It money we lost. in how LaPlaya also mean money depends quarter losing we much example open, we've as

Raymond Martz

in do going to the negotiate there. versus we'll second to progress to factors we we're That's agree were able that to $XX It's quarter, think of for higher see the same we million handful Ultimately, $XX we through. but of the Yes. not a a third and were the our go million in amount quarter, example, expecting.

and that's I would Fourth would result it so to here, What second arrears. tend a quarter number think quarter, we for the first because quarter these be quarter a of forth. the lower $XX be a booked million, in

hot it's less there And it's Florida, so area. as will risk, assume third seasonally then single there. for to it in on the typically, fourth number weaker in summer we of range-ish Down that If ramp-up quarter, Southern hurricane the September LaPlaya. be millions I months. tends pretty August, about wouldn't depend kind is, think be And XXXX, down the that in with quarter. will much the the LaPlaya, BI of at

prior the we There be the substantially start hotel, to we'll get the There be be of that. back we completed we we be quarter. when result of resort think levels less expected. all trailing component. way get a end by will will BI That doesn't to be It may As year. noted, a the ramp-up right able the will some this as than in

how LaPlaya generating XXXX, that's off side. to of of BI about back EBITDA, and in on $XX of We expected bounce it in this we're year million number neighborhood targeting recovery be And on it the LaPlaya. trails the and the depends the

asset-by-asset there. area management capital the then at whatever seven-year cycle for that we and look team And second look the asset with our each renovation at the on is, asset question or

those do in another we'd last not are Fortunately, cursory a to refreshes really and we look These when at we just are in job. we very sort renovations renovation, tend guestrooms. good back redevelopments the quality do, These of good the substantial do longer, forward-thinking here. wouldn't redevelopment design. major to through FF&E wasn't think and go with project that property goods I if and tend years, seven have items renovated necessarily that a to

do As we're have any years Jon couple renovation think of little of sort going next for activity. from we to indicated, disruption any here, the very

redevelopment we about XXXX projects many worried beyond. a and we to there, refresh, and as be really do but not about Here think may

Jon Bortz

sort in made. years new years properties material don't IKEA. the custom have But we always hotels these impact. refreshing. we're We're buying think I constantly not seven XX everything And we them, We're is regard, years replacing from that a buy sit for of our also buying Bill, buying manufacturers. either. XX from And we're or things low-cost don't standard We're we're for not let pillows. -- recovering We're sofas, or our

even primarily goods we're lot mean doesn't meeting property soft have summer. really on a impact I refresh what and W a the whole It's of doing, the at it's service performance not out of the very this a doing It space we're Boston refresh. long. of

capital on not is If effort a renovation in We're doing all doing you think about interiors our well. work our we're -- maintenance these regular we behind an of wall and when not projects. rebuilding portfolio, least as But the ongoing completely at it the many cases, that almost often part. do on it's

Bill Crow

it. for the Thanks Appreciate insights.

Jon Bortz

Yes.

Operator

of The question next Please Evercore you. Pfennigwerth from ahead. go Thank coming ISI. is Duane

Duane Pfennigwerth

Hey thanks.

and may of that recovery into when of BI, on LaPlaya property, about timing of to entirety operations, fall of how BI kind and inclusive the in Bill's kind that think of you growth, XXXX inclusive Just think BI, we Naples should of XXXX? growth, of about kind the over and its question follow-up XXXX on EBITDA

Jon Bortz

nice Well, there. ball a Yes. that's crystal

went this Fortunately, with the we and properties rebuild. before other through

Naples seen say than West to some as We somewhat markets other that rebound Key quicker an have example. like tends

We quicker. But expect back a are LaPlaya to there lot factors. of bounce

think than the be the in and way is XXXX conservative is the we're there. BI there because EBITDA be more I think by would XXXX net-net, of a number, inclusive it think ramp-up I to getting overall full-fledged that will area maybe contributed LaPlaya less in

as insurance But start the a there we better our unintended on as and to the negotiate with ramp we be certainly able able to get But completion and consequences. closer to there's there we're ultimately here, be forward up, year. always what that will resolving color provide and get we carriers we'll

be we You did that ago. work things of you items will that lot quite a were dealing be years Ian five we with like thought doesn't a There's much property, start tail up your chiller dealing when these that we'll would. with

Duane Pfennigwerth

happen for new customers? for for for operators? thoughts. build a a distribution question. hotels? about Any And you Thank upgrades Particularly and distribution awareness does Thanks you. this then the just talk your how independent Can hotels, thoughts process how bit you for your little renovated those the on education

Jon Bortz

Sure.

with their it's as asset we'd -- operating a comprehensive So, put a sit down staff down, managers marketing the property. pretty reintroducing team, sit together typically, our corporate our redeveloped well, for playbook

renamed. it's Sometimes

reflagged or it's Sometimes flag removed.

it's conducting the name, and get same digital it's offering a product. media. to marketing, of We'll an It's sales product. come but new PR, And the upgraded it's tours. comprehensive. its be Sometimes It's just people do it's promotions to effort, direct using upfront trial

quality for the get having the to at group big salespeople, at which that believers events party Downtown hundreds the big out. both very renderings, share group usually in are and effort word not had the side, this we'll photo point corporate And There's It's renderings, San We've tours we're already. comprehensive in Diego a etc. Margaritaville pretty probably opening and XX the bringing of It's involve transient to property. though side opening the events, versus a necessarily comprehensive. on

come back because closed with and operators to A year, over marketing activities LaPlaya that's in certainly did in of significant been hundreds get been dollars together sales spend a Naples, -- people's dollars, it's if hundreds hundreds thousands of again. effectively of for millions past. at down dollars. put it and pretty minds a we plan just And time, to in we'll big project, we need last big property We'll our of on back the of like we'll spend thousands like it's comprehensive extra down a and -- successful

Duane Pfennigwerth

you. Thank

Operator

Thank go ahead. is of you. Point. Compass coming question Dijkum The Please next van Floris from

Floris van Dijkum

Thanks. I I guess questions. two have

you're could building you've million touch sheet little $XXX been up Ray, If a on you the balance net bit, cash cushion. --

little years. two You would over comprehensive you fairly about And you where your is maturity borrow is the talk any Do cost -- bit see -- don't average maturities, you refinancing debt longer-term of of just I think the some near-term you would have short. about that? maturity, maybe weighted The talked of think where a today. you a but

put be scared or X.X% Blackstone in but recently know on I touch but office, did little not company, when debt today? note somewhere would X.XX%. you're able on where to tap refinanced, unsecured neighborhood. an a Maybe Dell, that investors were Piedmont, can borrowings a to borrow lot And Obviously, of people, you at office you a at at Hotel if had think you five-year

Raymond Martz

have we year. couple as our on million cash balance of things. fortunately, right, of maturities you're One, to $XXX it balance sheet. we minimal our this And a very over relates Well, have sheet, Sure.

some average have our loans We three not term actually Actually, two. maturing weighted is years in XXXX. closer maturity to

loans, concert groups up think as But as some portion with overall we'll about additional capital deploy we of should extending building paying having with that using address bank we're it of maturities down how conversations that you do and well some what thinking our back and the stock some it, assume with to these out. have actively, perhaps plan been part term our for for and debt. here maybe we hold cash we of about a that be a of as the we we the XXXX buybacks with that It's in

that the we And very done conversations had time. These long of our are are ongoing we've note, and a have good manner, relationships these all in a banks all all with for also time.

that and think about expect those are we we planning should actively addressing You XXXX. as

our sort now, debt, our about first on is so spreads As of to it all, relates new XXX. of right line

can completely a relatively we that that's low. at over facility borrow have unused credit XXX We

hearing. sort SOFR on a lot if like is somewhere your that's loan, are lot probably the depends somewhere originate now X.XX the X.XX we're a It to the markets property it looks a debt, market. plus right of question, obviously we New of range debt if of

asset in a cash sort If good the of you're location or be of kind spreads might resort generating lower. flow,

borrowings. that's Blackstone that a X in probably over, but didn't, you're probably something X.XX speak spread to is can't even wider. to new the could that's more little I for is market what like be asset challenged, recently did a more, If an or level X.XX,

we lot options our at We'll cash at we that look at maturing address interest. happening reserves. our highly financeable overall May of what's our and and next asset a is garner a there. look debt as with as and Margaritaville, that loan maturities, sheet We'll growing Vis-à-vis property balance will have well, our

Floris Van Dijkum

Thanks.

follow-up San that my touch So have the, of the maybe in if you on a renovations can that just Diego got finished. number you've market particular,

I the was that for guess, I them Margaritaville You've the completed, those touch on is got, market. I yet note that peak believe maybe still assets XX to And outlook for EBITDA the, be but or for million.

a did, now track of the right you're bit about as talk a market XX well? in of You going and XX. this on calendar little convention your view that Is maybe generate can million forward EBITDA

Jon Bortz

two dramatically impacted the repositioned they've it properties. keep project near calendar, Estancia quarter. Sure, mind four that a downtown for market. properties projects the portfolio. so would The smaller millions, and at all a major our all These had properties redevelopments. here, for when involves, $XX at and of was least two similar the August we see quarter suites, in the mid-XXs, look for The have San higher the the good numbers in in our that actually for And been It number the convention report all non-renovated I Diego, Western San you a we QX downtown Diego's, were property. in strongest market in term, say will so have embassy come, million we an

the the what pretty they think, compared in It's it's very was, even quarter, all-time there's year, is fourth books. to upon calendar huge, strong supply record the I in in on XXXX this new no all-time have based second to make half actually, which good And going new the marketplace. It's close and record. an the of Convention year. very the for to

getting pretty in So I places, drive hotter that's leisure to continues only it's if into that And other helps it. be marketplace. weather, it And guess, the favorable.

market, improvement in attractive years. do really investment there. next really, opportunity over So we an dramatic think And few for large a why the we've there's made such EBITDA

Raymond Martz

that to are why is year, in projected encouraged as the market And and XXXX those just San which it's These even year another convention about XXXX, Diego, XXX,XXX should why good invested in center on center Certainly, the benefit XXXX. best generate in nights. as Floris, of assets strength the years in Diego to be that previous perspective best which years. room in we're market. good. next to for And put the convention XXX,XXX, that from glad very the And increases XXX,XXX. two will San one the side, capital we strong it's we're XXXX, look the in back In

Jon Bortz

They're moved the think the The market in the that women's know lots the dramatically. into to strongest where got other and grow gone side soccer teams L.A. around of of challenges the is to you city economic an I the it's that team And through up basically. awarded and the football country they've life team just look -- market. one to that soccer. at sporting sciences attracting compared But attendance. some And of all went since, events continues market. has MLS in franchise they Diego base when records San for And concerts broken we

downtown amount they're science and market, leasing downtown. opportunities In demand the to Navy in But a contractors being asking so had have that, it one Security of is, it. Homeland fact, dramatic to border. And I other impact could geared activity if construction appreciate Really potentially it is, markets the exciting levels significant it you has fact life much has, other successful some the interesting space. corporate defense never lab the it's thing of than that's and about a the Downtown on and unlike close and about

Floris Van Dijkum

hotel or ask you hotel. repositioned will will Is that's -- in to compression? your actually follow Margaritaville convention that cater get typical maybe Or as how can going not your group convention? view? a of benefit Do up, I that it's from to think -- Gaslamp well just If briefly some people into that the you will

Jon Bortz

that into hotel. group We'll get

space was We material improved for great way. Solamar. a vibe it whether customers. And attraction Margaritaville as strong both is that people will benefit convention love, from as leisure a dramatically been some have that that's in what We they're they're think or event goers from the lifestyle segments it

Floris Van Dijkum

me. That's Thanks. for it

Operator

is from Thank coming Ari you. The Capital Markets. question go BMO Please Klein next ahead. of

Ari Klein

and Maybe Francisco morning. up Thank you, good San little exciting than a San just Diego. less bit on maybe market, following

in challenged. more your exposure bit you it the a the market underlines took year goes market cap rate next do your it still like You largely what the higher thrown of assumptions to quite that? you latest of the Where and calendar do the NAV, like long-term of have there. have towel here? some optimism, seems looks from in And kind conference think And is peers

Jon Bortz

bases much in the take you discussion Yes. economic about in the factors. I economic Francisco have mean, I San could want get the I country are what lengthy we Area. a demand underlying of mean, the and strongest into factors Bay don't to one the too and time.

-- center of entire have has There's one by that It's largest created San the in You strongest are rest it's the capital the which It's and the sciences market. biggest Francisco market. far businesses folks talking of life obviously of of much potential pretty country. the course, venture tremendous AI, than about. growth more

cluster, such those hire raise take seen fail big advantage to Francisco that that and San offices. San the all of seeing some the of We're from rates outside start is cities companies Francisco rates. they because Francisco it's need people, of over, low some factor. already of they of culture to technology of sublease also and there, of one educational is relocation a the that cluster San okay businesses as We've office capital, growth into those of

issues, already reality And that then you of politics the address center significant had to basic I that on issues I these safety is a have nine and a media recognition ground. months about think the life behind the the And we and tell sciences. would move have these to

I than place will XXXX. was safer, it's, And improve. think it to it's I in think a cleaner that continue frankly,

reduced which thought Francisco continue had believe which long to but we our in in was the the into term, there, gotten too concentration have mid-XXs, we San We high.

Ari Klein

can what way maybe And reflecting some us Swift during impact? on on you from you Thanks. you then can music, saw kind of the color benefit the quarter any the the effect just give quantify hold and

Jon Bortz

the the but RevPAR probably was gave think inevitable Well, Chicago I And in one I Chicago that final concerts Dead And that. the of the saw is supposed Dead significant weekends Taylor at pre-pandemic the when that media the of a strongest the it's since in SoFi days you -- six as weekend the at not she San dates Francisco and mean, it's interesting her. I its never final had of Swift August we've we had reports, pickup we seen ever just think. their tour mean highest I in day XX has there. already ever, result final. L.A., first look

a meaningful demand big five promotions we It's Diego, our of hotels remember a these when premium years It's When shows material kinds properties in come in well. few Petco in five ago, pre-pandemic, into entertainers to in markets. markets. a at a driver. San out related all our in Swift pretty out I have row we nights at row, a sold Garth And nights as Brooks did Taylor It's the five sold and big-name row these rates.

Raymond Martz

That's a and just mover Swift, visionary, us for it goes She about think and great, Super across. been you a needle she's nod to was Bowl. musically sure. big helps she in when to her, so a Aryeh, why a market partly Taylor it's rolling the

Ari Klein

Thank you. color. the all Appreciate right. All

Operator

go Thank Baird. Please you. Bellisario of is question Michael The next ahead. coming from

Michael Bellisario

evening. Good Thanks.

expenses I question, or picture, that back out be and big about, topic XXXX? is XXXX normalized earlier. we to thinking a your high to Kind margin you're your it's whether rate portfolio of for we to from there markets, about First wanted come look level, the should as for run sort thinking a of that

Jon Bortz

that to in and closer but -- I environment yet, wish Mike, moving we're easy, operating not normalized it. when we're was it a

Whether groups. But don't what normalized back. any give particularly at back stabilized to margins have once for. it's translates well but volume to flow the side or recovery levels, kind on that to you. Unfortunately, the room that that for we that's really related get of will that volume point. you're F&B we we looking from it a into Therefore, on we recovery side, can't we're occupancy think at this I There's need expect of lot we I don't marginal staffing of marginal think here. see staffing

Raymond Martz

our seeing rates wage on the in But were this Mike, they in last expenses. coming we general, are more versus growth rates, we where touched year. moderating call, down are, The are

a So of going that's less headwind actually forward.

the were there. should are supply those also then with And cost input the and moderating food be Those last versus year. in costs beverage, improving they other, factors where margins

somewhat in $X.X a different There's headwind next or for that that we'll also months have that that's XX about, year, are time. that's taxes we talked XX million property margins. a And basis been headwinds point is the moderating. so that energy Now has increase points inputs. Hopefully, of of at stabilizes some

have insurance. be on at the look property than some to hopefully should the achieving coming we'll energy factor have in we're some tax reductions of what quarters. to You a positive and these is and other to report costs you of that differently property have labor deflationary And look at like more successful on

Jon Bortz

and revenue and we of Mike, to expenses. forecasting Margins or think we've than with revenues escalator basis, trying levels building an X% you start we'd use growth as -- this, it suggest always the to your solve X% as margins going a upon escalator suggest, forecast and or It's for margins. is on say, frankly, lot category. Certainly, each a volume margins. easier in to a year-over-year reminder, are depending suggested expenses thing we a X% are don't models, expense frankly result I would just be opposed but forecast to a to

Michael Bellisario

get figured in over And just buyer front, better what's for looking quickly, hotels? seeing just particular are that, any Thanks worse markets switching on gears where sell changed? the I'd maybe any then ask. or the interest last you XX transaction days, to And you're

Jon Bortz

the that has the you think debt about it think proceeds, result availability types press I a high-cost much property changed. would I in largely of read volume in of the down, remains or Mike, mean, with lower Yes, I of being terms don't all it as say challenging. transaction debt. I

that that high are getting either becoming yield certainly the it are flowing mentioned I the these one think deals pivot are done, is markets, select longer we're some service. say a recover earlier, it's in focused. that seeing, would deals maybe cash or more that resorts I to and people little say I Jon would that of

taking their which longer pro much pricing. a that and impacting It's underwriting of impacting say I lot their is potential investor peak, forma still would But there in to get that interest. remains because terms pricing, to their of obviously is

pick to to into think is I a move just conviction they're level market. of their trying what

Michael Bellisario

Thank Helpful. you.

Operator

Thank you. Miller is Securities. Truist coming of The next ahead. Gregory Please from question go

Gregory Miller

Thanks. markets and West Thanks. Good expect upcoming XQ travel XXXX? revenge morning. trending rates to next XXXX theoretical Beach I'd How and reflecting XXXX to winter impactful also travel? you Key your like like rates leisure be to How ask revenge about Hollywood leisure room normalizing. normalization given for relative do perhaps Southern on your XXXX of are a the Florida winter in commentary winter season for

Jon Bortz

we Florida terms this -- quarter books don't Tough There's of lot have what's out in on the not the I question. all, market. on a first the first there's markets. thanks. books far of Yes, those numbers think not in in the handy

occupancy I particularly up normalize think markets, opportunity an that had down down kind to of there's to those Key to still have recover, and which swing. West, recover in we demand in and

business back normalized you yet We're it a those wouldn't like to low can't to if we them half read mean the demand I getting bit still a go year, like, -- can I of conversation offline lot into look whole a just have But amount the we're it data of anything occupancies. and about the what trace to I on XXXX. given yet. this you I second through the running rates have lower books. looks but that's closer more little don't give in

Raymond Martz

have be as into last Yes. if nights last X,XXX window booked much to And more too versus in room inaccurate would time we're booking because closer the not really happens time year. of read also we outside as It's what this really. it much

Gregory Miller

understandable. That's Thanks.

the mentioned tried to noted for my question, to that the you what's on XXXX for pace XXXX your in XXXX? on clarity response numbers is and on for San Smedes' in How group in to question. your Francisco looking a relative pace Francisco San you For figures I side and some release going revenue ask group follow-up XH

Jon Bortz

convention not for Yes. half year, It's given there. second the the of calendar this surprisingly, up significantly

in in particularly properties, have. up year, doing is on June group which that more market and amount extremely ramping our as opened of one well last space As that of the limited we meeting well is despite the only

running around XX% mix one. we're think at I group the

recovered much are And continuing We're the of in does better San yet the half rates. I think Francisco points year. of as in because it wasn't year. in in half. one in we're the shape include still doing pretty the not the at second second high half first second see And open XX a comparisons the it we said, nice We'll course, than to half last recovery occupancy And of XXXX good comparisons, in first occupancies that half. I the

And are going of conjunction size, they'll to get not conventions keep As half. convention calendar first a don't that to the We our the can our back to offhand group. that XXXX, But know because I relates up with calendar their mind I the in it ultimately presume in up just small market. and lot bookings in the look get but is that convention the bookings in for And may them track that market. participate properties in group you. of

the think even property the sell on good because already better about group continue Occasionally, whole next again, its to. first will quality optimistic of Zetta I one the of size. the we The Francisco of is, year. half about out properties gotten to San We're news has takes like and ground life who

that are perception demand indicators positive seeing more the reality, market. in move businesses negative and and headlines catch will seen. coming And the with the from of think we that back, as away we're we've I recovery up more further

XXXX to lot XXX,XXX XXX,XXX, year. that a fix And to then the have still that of half. we XXXX in more up right about in So now, time time XX,XXX space to fill I to big with of second the for to compared think is help backfill rooms next a in course, part of down on Authority to part half market business the the all is in-house group hotels in second of the the going convention get There's Convention that pretty effort and year. in of and

Gregory Miller

Thanks. That's have. all I Appreciate it.

Jon Bortz

Thanks, Greg.

Operator

you. Thank

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

Anthony Powell

morning. Hi. Good

question a travel. on international Just

and are can just be appealing. markets cheaper recede versus International and you going be of the How we view do guess that obviously whatnot. travel will forward? of destination are you capacity a bit mean, I I know said revenge international curious that nature airlines year. markets. go international know think beverage your next more the what expect I domestic that? to to adding to They in we food I'm terms of

Jon Bortz

I anecdotal also segments again, it's think look -- for in term other at experience reasons. defined our lot it's use other evidence, -- we travel a revenge I'll this and think of I if with

I happen. the thing see think we same

recovered, them sitting you of the here of normalizes. There's others trips a had I took but over canceled, fact, Ray had when again, look at norm, think this of in canceled who have it's the historical we year. them outbound, to Europe. is of that the particularly So fully I lot who friends lot think pandemic table, trips And one and people who and because a at

year. So and they every don't go

see basis, on that outbound normalize year. So next think we'll I do an

And rational I think to gotten it's a also abroad. think travel to think expensive it's I lot more that.

up ticket As we are way the they international from know, where prices were.

side the on decline starting the prices other here in it, of we're the to a ticket see U.S. And domestic in

I Some of to that's think comfortable an that likely that feel have and we will happen. impact pretty

Raymond Martz

Anthony… And

Jon Bortz

international way, I is go travel It's still going directions. important recover. go think growth because long to a to the way going decline. U.S. capacity has And different not like It's global in necessarily just by travel to is inbound to the to

Raymond Martz

we out. less actually had your here U.S. we will to with Anthony, going And a we really haven't benefit What outbound of kind more question of think the travel which international. big is strong the international U.S., markets, normalize the side year, is, in other experienced, next inbound

That there, mean far That get is is a it well who last the I knows, should about, as XXXX U.S. be more and at we and weak. here, in up tailwind Korean still coming largely into date. should some versus below back see travel haven't time. we that Pacific very really Asian into certainly pre-pandemic from point see we Europe so but mean, And I levels. Japanese in year, which up China the when was where traveler it's come hasn't the very, what and beyond, hearing start we're opens should travelers to they some benefit but seen the we

Anthony Powell

there What inbound get ways are that Are travel the by of next border requirements my be prior issues was travel? inbound the are eased gating kind back to can government remaining other international these question or any to levels? international That that to actually. I guess factors

Jon Bortz

this time to for industry staffing administration Remember, need levels. in to That's progress, And been U.S. and The allocated through the government. with money the went expect though the into the back wait U.S. and staff Yes. reduce needs Obama get one that with to some the they for visas once working make we up have item travel they more budget be to improved. we're told before

a the Russian can. over is The Ukraine with U.S. that second shorter thing a China/U.S. route issue Asian that route, is of there's because airlines goes Ukrainian, can't and on Russia, which while the an carriers war fly fact travel the the

So because shorter that economic route, an There just get being dispute to about lower unresolved That's a as those subsidized, it's effectively are well. things couple diplomatic that's a important the not cost go there's solution, to are solution. and it resolved. a of

families way, that after to continue we month every their their to felt recover. it we Americans by XXXX. the with international catch generally, think they go finally when abroad, compared we'll they've just will up We recovering that help decided done see But think is continue. comfortable think like And to

Anthony Powell

you. Thank Perfect.

Raymond Martz

Thanks, Anthony.

Jon Bortz

much your be Hey, And remembered thank you earnings my XXXth very public Put for up to the you'll Anthony. participation. Anthony, last questions in as Thanks, your question award your that everyone else, call. on and wall.

through follow-up summer. the a We and the questions, questions the appreciate of we updating you Have forward of everybody's quarter well quarter answer you as after and their the course end of hanging in look great we the as here in October. to could rest so

Operator

Ladies and today's for you gentlemen, concludes your This event. thank participation.

this your disconnect day. of may your You time, and enjoy rest lines at the

Pebblebrook Hotel Trust (PEB) 28 Jul 232023 Q2 Earnings call transcript