Pebblebrook Hotel Trust (PEB) 24 Apr 242024 Q1 Earnings call transcript

Greetings, and welcome to the Pebblebrook Hotel Trust First 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. Due to the fact that there is another industry call this morning at 9:00 a.m. Eastern, we'll be keeping today's call to an hour. reminder, is a recorded. As Instructions] this being conference [Operator your pleasure Martz, It my introduce host, Officer. is now Financial to Raymond Chief Co-President and you. Thank

begin. may You

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

Chairman Joining Officer; Chief and Investment and Bortz, Co-President Executive Officer. our and me Fisher, Jon today Chief is our Tom

and Before for include XXXX, laws, XX, comments may results today, forward-looking federal please as actual and that under comments today's materially discussed. note begin, differ April we are only defined statements from effective could our securities those

our For recent website of a any today. comprehensive potential analysis reconciliations detailed filings risks, non-GAAP our please visit consult measures mentioned most and financial of SEC for

on quarter Now let's first our to move results.

QX on negative weather are some challenging coasts. of both despite the share pleased results We to conditions impact our solid in financial

Our managers adjusted to urban the hotel our including EBITDA, key metrics, with diligent and and by adjusted the same-property cost the hotel outlook portfolio, in end and teams, exceeded company, coupled led our markets, reduction handily top efforts EBITDA continue operating FFO. asset financial recover which of we

points properties X redevelopment prior a In from climbed was by case, nearly Downtown at gained increased urban strong impressive to an convention RevPAR calendar also led by Washington, D.C. standout performer. benefiting points investment surged D.C., X Our program. produced year our XX.X%. Diego, by RevPAR In our X%. by QX, our gains, markets San XX% occupancy XX% significant in that, bolstered impressive in has and been San rising and hotel which were occupancy a an to Diego

last in in our continued urban and weekday increase recovery a XXXX, In and experienced our occupancy markets, QX premium in X% strength resorts, hindering rates resorts with levels cancellations. weather its this traditional compared the and quarter, both in the QX, well to these San with year. QX Gas West first and across the X.X% RevPAR X.X%. with Key received luxury but resort X.X% Hilton quarter, following South helped a offset X The QX properties, and portfolio. have for a recovery a our grew generating RevPAR X focus the contrast, Diego San same Hotel recently properties from continuing quarter Hotel occupancy versus more last Notably, our portfolio in for getting very shown travel. lead RevPAR were of solid traditional Compared Gas points conditions Francisco Diego in by in the property downtown exceeded varied compared last has bookings Northwest our to by pandemic, its business growth hotels Harbor a challenging markets XX% in to in compared the by market redevelopment Overall, Los the maintained in and by market. points RevPAR recovery of Francisco Diego positive Angeles XXXX, X reflecting of to gain markets increased robust improved maintained XXXX increased than resort share to sustainability Newport been our and properties year, Overall, known RevPAR Florida and Margaritaville QX and reflagging. affected Our urban performance redevelopment last RevPAR growth, stable California, declined San from resort pent LaPlaya year's they portfolio, These gains quickly also disruptions, leisure Beach in our resort decline which Despite and XX%, the QX area's occupancies the displaced year. ADR our and though has San recovered revenue respectively. significant another demonstrating year-over-year, XXXX. quarter. QX, same-property Island almost regaining EBITDA XX% Resort San short-term very redeveloped and our Resort, Club excluding Pacific XX% continued was

Our due issues weather basis weekend discourage leisure travel. declined which points, to that occupancies was roughly largely XX

is improved than in by properties cities weekend a noteworthy continue that events basis an into at occupancies travelers our that Spring perhaps year. greater it Brink March, and However, drive urban points to trial indicator will leisure at XX clip the last

the X.X% On Easter also X.X% increased negatively increased the holiday our group XXXX X.X% improved, terms mix year. the higher mix, In segment customer basis, X.X%. as growing group rose in demand last with shift. increasing of over X.X% X% group X.X% and our revenues rose to segment increasing a in from in as RevPAR leap to March, from monthly due revenues year the room impacted Trains X.X% and February the roughly primarily growth and by led January, transient February of demand QX was X.X% extra portfolio RevPAR in than day a which group XX.X% revenues QX.

$XX.X our surpassing reached upper end QX EBITDA same-property outlook million, of million. $X.X Our by the

was reopened LaPlaya In This hotel by combating a operating better-than-expected before EBITDA by and basis, to QX, occupied across in expenses QX. posted recently this which On declined you by declined an of team, led success total LaPlaya These performance focus to job inflationary our cost in own XX.X% by departments, the and all X.X% X.X%. our our room reflects million. This expenses, efficiency workers' intense same-property from highly implementing efforts processes, addition, operating have reduction our favorable our improvements. which margin our they progress hotel outlook song opening exceeding our enhancing our much fixed inspired arranged The and per heard procurement Resort hotel morning. had a staffing in leveraging compensation an EBITDA program ongoing contracts negotiated curator. LaPlaya and and optimizing efficiency through sharing, pressures measures levels $X.X by Beach results focused enthusiastic [Indiscernible] strength our also of bolstered on include

filling invest increases in energy contract our to offset continuing inflationary in while our enhancement These energy above strategies wages, technologies We staff portfolio. and across equipment. benefits, of our in and on to broader productivity reliance part positions successfully initiative cost turnover, reduced and statement also insurance also providers are reducing by third-party internally

a and same-property our EBITDA strong strategic reinvestment of As and FFO of $X.XX the above adjusted outlook, adjusted EBITDA top to performance, $X.X end LaPlaya's was per our result the better-than-expected Shifting million share better. was program.

New substantially in Spa Harbor substantially we quarter, open investments destination bedroom villa. cabins, Skamania of Newport opening alternative units. significant X of May should And This X, including completed X a luxury a completion capital transformation is at the is and combinations, unique England $XX made of also the Lodge, The on X new $XX redevelopment X-bedroom Resort properties. million La at million complete. And multi-phase progress premier Jolla Hotel & Island into resort Estancia soon. glamping we lodging several expected luxury introduced

new accommodations, the alternative will Over term. This which years successful X we long also of the types in the our these as lodging to or will to guide analysis experiential XXX Skamania opportunity to have next of over units includes luxury decision more year, performance additional types evaluate of add coming the we treehouses. add what to an

$XX and investments quarter, cash market future. million we the will foreseeable we throughout With repositioned properties first are the invest in on the about in to year. for track remain substantial the generate portfolio in in share portfolio flow upside confident And both the the to the $XX.X $XX million these million

of that X.X% good we comprehensive attractive weighted to XX% no of is October The our following an maturities In efforts with over completed with ago. rates Jon. debt cost the the shape remain meaningful Jon? I'd of update, months terms sheet, our like XX% and until at And average fixed refinancing unsecured. balance turn with call currently in to it X we XXXX debt successful very just

Thanks, Ray.

we're with quarter. our the in very indicated, Ray pleased As performance overall first

Our the our top end line the was with industry. range handily outlook performance RevPAR our operating beating growth upper of toward

top Our Ray We end bottom exceeded the focus on in detail. our efficiencies results outlook. properties the line our of our intense as of creating from operations further benefited well

takes the in some called sustainability than well customer mid-to-lower and results below weather doesn't usage and X%. weaker, the from view business group in longer end further and bad negatively economics XX This demand at XX was consumers of likely transient negative impacted performance. continues industry's will price below declines urban a Encouragingly, evidenced way, Easter is later the those and travel points basis from it When it with new are to growth but reduced struggle Demand prior results conditions. in turned softer bad realized you demand potentially at expecting. the major continue revenues, a greater costs, leisure reports. And the continue and Industry are run We first related business to Year-over-year our seeing the in quarter, results to Supply with way. every the of that also segmentation of the to of from sizes first scale the to impact to upper these pressures through urban result negative related out is performed at for and clearly weather likely development the the than also particularly in were Las run rest of get is hotel the silver mid-to-lower the paint as impacting socioeconomic Vegas to industry's little being larger ADR exclude continued XXXX the slightly think our in of other in months industry We case and industry's savings. quarter the XXXX operating least and slightly to industry's growth quarter, thanks month to consistent the to far the businesses. energy of and businesses performance. now in weather to RevPAR milder out believe impacted growth was and recovery. weaker quarter mirror quarter, a believe of weekend by flat shift. for improve We much declines by at many and a by year-over-year you with a justify X.X% industries months And RevPAR overall X.X% in project we holiday best. performance straight performance. costs. bad hotels experienced build are if X% softer the economic representing leading declined travel weather mid-to-lower we a softer upscale was resort what needed and worse although challenges markets energy terms by cities, We positive where higher leisure But harder finance. the targeted even the being the clearly, lining initiatives the and provided which In year-over-year quarters or below results, the class their straight XX it look occupancy.

For Chicago by despite RevPAR which X.X% and growth negative. urban led was substantially being our our portfolio, markets, grew Portland

industry's Our urban quarter. category, performance delivered in the RevPAR urban X.X% exceeded which the growth

points Ray X.X we or As of indicated, X.X% gained growth. occupancy

almost out the to occupancy look in last that. you recovery was presentation, have terms XXXX XX% which still want on even opportunity we so our take financial was opportunity might recovery our XX a laid prior However, in and night occupancy of points for urban XXXX we We've posted not portfolio or as our website, our investor occupancy. a our peak at huge occupancy levels, level below urban

the by last Our in performing were were quarter few the led that in RevPAR properties our best redeveloped growth years. properties

repositioned and RevPAR All growth gaining significant redeveloped revenue few share opportunities of are and the years. these and for next other over growth properties have share

at and upside also D.C. this we'll and Resort our presentation. position and in detailed feel Santa were substantially disruption these Francisco and now strategic last and completed XX.X%, opportunity these to demonstrate this growth at indicated, but along our in all and substantial investments. We've investments of the were drive related were revenue Zena They so to The quarter. under XX.X%, comparisons Del growth. properties a very 'Auberge the in next Viceroy in comes few Ray Mar opportunity of Newport at we're noise rest the year's redevelopment Hotel both years. San next Harbor Estancia upside with year, gained XX.X%. RevPAR Monica With redevelopments Again, we month, without the at performers share of Jollas easier, La great best And repositioned investor displacement Island the do years the to and over major few these As XX.X% able Hotel redeveloped it they that most D.C. year X properties almost redevelopments. with be significant Viceroy impact of the being Diego San XX% grew last the beyond the were all downtown last impact. the X in

beginning ahead by LaPlaya membership finally GOP, $X.X it that was million the the Beach $XXX,XXX addition, was This see reasonably the in outperformance with EBITDA, and we driven by be play quick, In outlets will rebuilding beverage of million. believe the and achieved its In $X.X expectations QX, of exceeding complete, and our XXXX already XXXX, LaPlaya to of we're but ramp-up total just revenues Club. and of below out. food

put confidence expect to achieved, XXXX first Combined would EBITDA XXXX. QX, $X to results well greater of $XX million half deliver beating us recovering to in $X.X ahead forecast our EBITDA quarter, $XX We would 'XX way in these approximately million our this ahead pre-hurricane than of of first LaPlaya million second forecast if our well be or of for hitting on would EBITDA LaPlaya more for with million which us quarter. and which, for give $XX.X year, the million

which of reflagging from the Pebby example color $XX transformative investments, performance San X on several another independent returns Hotel the provide and Francisco, a beneficiary also Hotel was of recently team on Vitae As a the to our property of also that won the redevelopment Awards. some wanted million and major I redevelopment

is ADR Vitale XX.X% versus RevPAR a San XX.X% of full power X, of property unrenovated share XXX.X just really and customer. XXX.X X Hotel on So with how XXXX. for by impressed operations reopened that first a year XXXX, market, set, a as RevPAR share of in our competitive what the San brand ADR share Recall we in difficult X the achieved San which one was very luxury share hotel we're Hotel EcoLuxury In well an far, resonates from June Francisco it Francisco XXXX. the its and a the up and Francisco

share. great, against So of from it it's basis our share achieved plus free to returns another X,XXX another points gained that we our this recognize sound RevPAR more a best gained far look Please RevPAR XXX not EBITDA. XXXX of in in has we've Francisco, XXX to case XXXX, all study share so of few points our XXXX's and points share. by XX% that repositioning slow XXXX, X redevelopment March, In recover market projects. In of stabilized. in ADR Francisco and like at through investor points being the basis San a but a achieved basis basis performance than and represents, very may of far in ADR feel it's X,XXX And other Hotel properties. San presentation examples on far, and the take show We

line our into and we're out quarter. outlook year, QX look first indicated release, full our maintaining press the we of in our rest year despite bottom As the in as the beat

the modest and QX the EBITDA and just window of as industry the second booking very ready been short-term the up smallest not our environment rate changing is number about year. beat. bookings for with given Fed to of normalization trend expectations and of of of We're the not regarding our and concerned rest QX last RevPAR have of We're demand and bank increasingly year. reducing continuing know, macroeconomic you become the contributor growth year, we've expectations for half timing not the cuts the continuing keeping the weak X all As quarters, the the

we've for RevPAR growth of So XX of days far, XX%. almost first the April, achieved

month, for between for have both to well tracking days that Passover as shift. that the certainly RevPAR positive, Easter is of portfolio be the the X% significantly With the these very recognized and from Passover currently our last as be should X% benefited XX month. covering negative While days is the it shift entire

June of May on looks again. monthly some rest then impact be the Convention the quarter, to soft timing to For and strong our has variability. be looks

is a X.X%. range the first For in quarter, growth is QX from will to industry's RevPAR similar X.X% Similar second first in forecast to RevPAR It the outlook, point the time. at conservative our this our quarter, performance a to this we And results. not outlook for realistic quarter is outlook. to expect exceed our

real rate these will from these control, anticipate QX been our benefits no the net growth reduction reduced For and in contribute and finalizing million assessments expense an the for over approximately credits year. would tax Despite estimated included and both significant prior we result expense. tax unpredictability estate credits in these a year $X This quarter to we of and the XXXX QX have compared QX, have to our recording outlook. periods, several of which

real continue much assessments as although years. to achieve the timing these results Looking Typically, to expect forward, X spanning we from efforts credits, to remains X tax and from uncertain. savings substantial estate as stem

pace. our We by encouraged current also group to in be continue total

slower booking basis. this quarter followed on the cautious for in pace the well the given Our the X softening same second nights our and normalization the for last month the in books largest group XX.X%. X.X%, about the the pace time room room through we revenue environment. is ahead the by night remain by and window by pace X.X%. X.X%, with QX by With year group trends due for ahead X group total quarter by quarter up month been of a we've booking macroeconomic X.X% the transient pace total ahead quarters advantage percentage revenue as revenue half the is and on represent pace as shows by QX group of to our continues Nevertheless, to ahead the experiencing,

is property Jolla reviews multiphase from to of of due La the robust La should the surrounds already growth indicated, be the Finally, fantastic vast redevelopment biomedical million We the property. and excited able very as expanding Diego customers. about we're of to strong glowing it's The the into San that repositioning. and Estancia looks $XX drive extremely Ray the capital receiving flowing submarket Jolla as amount completion industry

university is directly addition, crazy In the property increased the the the like which the from and is in is California into largest will to across located street system resort. growing UCSD, also drive demand and continue

is With of the Resorts, transformation Naples, Skamania $XX Mission of Harbor in That completed Chaminade portfolio Diego our strengthen. Resort, recent demand at completion the comprehensive lodging rebuilding San Island's the alternative Newport remarks. Club poised and proceed redevelopments as Resort, the of along million Jekyll strong Southernmost Island with LaPlaya future Bay Donna, with our resort completes Q&A. and the growth the added group you leisure being and Lodge, in prepared for may additional

from The coming Fargo. floor Wells is Today's for Instructions] of questions. [Operator question is Dori now open Kesten first

You slowed. harder you bookings that planners around such minimums rates? else note short-term seen a have context for or pause F&B more provide has on that lower group have you anything And pushing bit given as room you Can pushing that? media

mean, do that Sure. Yes, today our I has more booking normalizing. is with best conversations with based clients it upon guess the pattern to

happening meeting before. year they been out their that last were is and the a are over than what's planners year businesses really, booking further meetings So

last already And the in we're coming the so versus for certainly month, seeing the for when in upon less in meeting. pickup the a year or year quarter, because year we're they've the booked for quarter, month the

to spend not reductions kind pace changes we're or of converts percentage outside are pace we what why committing seeing think more this definitely advantage window. normalization last over into we're of so any We're advantage due of attrition, a the year assuming in And cancellation, part some group growth lose room cautious in that to in because it any we're all the that's groups seeing of to. booking same with being have, the the going of little we not

don't normalization change it think cautious the -- of the perspective, booking confidence our we reacting more it's on to We to a it's from So indicating primarily environment. economic in part window. timing businesses the any think do has due of

I'll Gerbrand of Citi. Smedes on to the Rose The of Van move Compass Dijkum Point. coming Floris coming next next question question is from from

resorts? you're I wondering kind trends any into could a summer was leisure seeing talk just more little of you about visibility if bit your across about

that Yes. summer mean and the of in resorts. what any I about indicated in would and we seeing feel months August. is have I call, I now to good we little July kind right a significantly is the of premature some upon think group pace I comment judgment our based make it's from the third we're up mean that of that and quarter in is the the

From a make So it's we you hotel we look perspective, certainly before not reservations. good reservations as as know, quite their books. like the typically a folks well have airline transit make base And they clear. on

that's So or I early they're or up commentary But strong we're encouraged of I to look, to whether a think bookings. negative. going it's the as to think a going terms coming out be about lot we by how the of airlines make they're in summer to positive judgment be too

Floris Gerbrand Point. The next question of is from Compass coming

to wanted -- some been you, appears deck, returns ask our urban mostly have portfolio I resort than potential your your if at you're larger on I penciling renovated. that for the in your assets that largely of look upside the

think about you you would in put urban Where capital your in it? allocation, would invest resorts? Would invest assets? John, incremental would more capital you Or As today? you invest you where

Sure.

you of the alternatives different think is than provided. that I the X answer So sort

and So any stock our back. been invest we to continue would own incremental have capital in buying

in leisure. of their We've have significant upside the growth, you and basically, the that think transient group percentage, we'd resort and we buying We between assets urban will, if mix best into highest growth it's feel and good dollars to be and revenue greater of where and a own. like invested where of share we positioning So business, already a hundreds properties repositioning between millions portfolio, profitability. they there's

be in sell the I so range from at XX% somewhere the trades would which stock existing assets an it's where perspective, we so that individual of a our -- today, back, think think answer. to And buying we'd discount easy

growth we're one likely urban in still to selling if likely but buying sit capital much paying their are or maybe because way, not recover, EBITDA assets, markets sell. along and assets alternative to be the rate answers your we're portfolio back returns the recovery with that have rate upon I isn't some that the in selling question stock debt we think been the in based and usage we're where our slower great, down still higher, we this meaning

generally assets our portfolio, we resort continue which, believe portfolio. very again, in selling within involve wouldn't the to significant have upside it So the

Floris, that's And significantly deck, our have the and of solar leisure highlight have $XX in primarily to But upside recover. than the urban early just also, yes, because pandemic recovery. in over we the million we markets of most as more fell markets the

So our hotels, in the upside get opportunity, we XX% ended just still occupancy with peaks which bridge XX% where if the at urban is and us XX% were. shows prior to below we

So be the we couple to to shows from portfolio, are in the assets years realized urban the next achieve that, tremendous growth the and that. of again, that expect

Pfennigwerth next question The is coming from of Duane Evercore ISI.

if the on trend I quarter. wonder it in there's emerging. and of to predictability group kind give the any pacing of the kind back Just of

replay just of couple So how quarters, where was just of start then up quarter could pacing in kind to last maybe context? it ended put that at you of the ahead ultimately help XX% the the and much pace

but see we we'll pull data, I which X,XXX mean represented year back sorry. to QX relatively we revenue, in QX the group Duane up I if $X of the was quarter before pickup under can go think group little rooms. million Florence. versus a were we in flat, Well, the short from for less that little prior about a If that, this than Sure. QX, that

sense. No that Yes. worries. No, makes

been think And the I been over bouncing it's what's the all place. reason predict hard to kind -- it's hard of is been

at looks So what and see. Gabby before, like I the just I looking quarter up it pulled am here?

Okay. Yes.

about it was less QX. $X.X So of million QX for in yes, pickup

minor, normalization So booking the pretty pretty evidence of of it's modest window. again, but think I the

Makes sense.

XX%, you do So quarter, we'll specific say, that if end when we had to where and there. we guess, on that I and kind is you realized the can to up tell in revenue which you like get of punch up think, third

happen. will Well, certainly, here's be going lower. I think one the right. challenge -- I know percentage to All thing the is much is The

come we come percentage on represents much mean -- maybe quarter, that think of -- have just we XX%. numbers target Duane. down. to can see And the up, as naturally the But that -- I as obviously, So it books, how to perspective. is you -- more I that if is down We'll get our more business going we the math put down It's what right the book percentage right? maybe we going larger, from for know comes the now, percentage and that pull just

really booking the the terms In of forecast to window, at impact of just it's point that hard this in time.Â

question next James. is of coming from Bill Raymond Crow The

of stated was some fourth of decline of that don't was international maybe, you bullish Jon, saying months. consumer of release but travel the really also a much mix hoping inbound kind then you not this can the I that in in normalization summer of And quarter, How year, don't but spending? properties, ADR you're you're into what shift. much going I'm window you to kind dig your on into that have leisure the reactionary know, at just of you're expecting forward. much How

it. square just could up, you kind if So of I'd all that appreciate

shift kind take shot Bill. comments look a we Well, at my if are I'll don't it I of But ADR on It really had is region, mix property, the on place. the the as the property, changes at There resorts, when it, a I well. over the going the at think an going the will all at know depends resorts. impact the weather has been all square up. what's upon

that's to look at. easiest So the first shift let's one the mix talk because about

substantially rates. lower It's group we midweek, are the generally at season. rebuild As out rates It's of group the the build. particularly the our speaking, resorts, base transient than

markets. lower, it so other urban with much resort markets gets and it And as competes priced as

group, resorts, the in rebuild overall resort our our average. part that which rate mix, the we significant of naturally brings So as that a is down terms of

comes it's local being induced business, in, at it As stimulate that demand, which it still has in you is typically pre-pandemic you like we in below or summer. tended have rates that's to particularly you it be the recover hot where business in was through like business lower Florida or to where wholesale in international to promotions was and gets live markets demand to represents that continue add off-season 'XX, leisure, stimulate, a which have pretty

bringing And your hopefully location, so cooler at weather, from to a driven to Florida, it a lower in by getting rate. people come comes inland beach people

this So good a mix. bit there's of is that

premiums coming some has for of normalization away. think up people mostly I splurging behavioral caves normalized is that out the think and big holidays pandemic happened, we days, gone meaning paying getting and the most of around after compressed and the I their were on

And of than at be this really to point. better first looks an a was ADR, -- now, resorts like rates And as why we're for And it at will quarter. lower it where the into what half half. look resorts looks relatively our it example, QX, right second the the in our first so our be losing small than for amount decline rate we're as it's we losing

resorts on a that stabilization. think benefiting to at the charge more getting So also, repositioned to we're And darn higher level ability we've to the I portfolio. pretty we're some close of from the

the part and second And international your inbound. of question, then Bill,

At a last least over couple on international is March, that. things of to through note Just year-to-date inbound year.

that it's So improving. shows

recovery. any on month basis percentage closest In a was to of XXXX fact, March than

to versus more especially forecasting direction. quarter, So of they're noted the it's demand. Pacific couple international. this recent lot right more the still good on A represent and pandemic, that airlines that, increased does calls stay heading record go here Europe. the as but transatlantic But But we And It's of it travel of course, the travel, in outbound, it's a is U.S. up. heading by a Americans from driven to number significantly and coming it relates fell to more summer encouragingly, encourage in to direction. a

America. is next Kelley of Bank question The from coming Shaun of

come season of calls Ray technology earnings of up one has or been the Jon, on thing side. some the like this a rebound bit other travel a that's on

I think be BT. probably on more this would

you're about a kind seeing. talked we've on group curious think morning. I lot But of what this

Francisco, in San Northwest plenty a the lot exposure as -- Pac You in exposure well. have of

life least more is from So technology you've are trended? strongest, I heard been the sort large that mean from just And group of if seeing that you seen we've by is pretty -- you've accounts? lead of some at has the those How maybe but clear increased segment, here? gen on -- signs room the the there in side kind curious BT I'm still accounts. some of of technology

Sure.

technology our portfolio, think it's it's no travel noticeable. that seen general technology numbers. and significant I firms transient in that recover, we've doubt the business we the occupancy is look And increases in continues a weekday technology there's So represents but bookings stronger as And comment itself throughout Boston, represented in to markets our from like volume benefit San has side, the in firms adjacent the transient Francisco, Santa significant which the lead in doesn't seen property, and group our Silicon corporate like from Cruz change in very Valley.

of side consulting in just or So on around seeing sort businesses the know in seen went during XX doubt got technology. in later case a sectors got these I to turn of little it the definitely we're of period months transient recover through or last as that financial a And this increased the more so that the well. total over cuts And we've technology, in it's this maybe pandemic spend. far corporate and job year. itself there's if cautiousness XX in the maybe of and of the your time ones don't are -- that ahead business no seeing in way also the We're

The Michael next coming Bellisario of is from question Baird.

Jon, help what's and us much outlook? to onetime the expense And prior incremental of savings like? then the your And achieve been you've to that maybe in or savings XQ compared prior you've what's go I side? commentary. to your new, on much recognize to rate Can What's in you recognized XQ. run how back expense expect of want forecast to just more savings it able is maybe the look how that just

Sure.

mentioned I taxes. X. So estate it's of real the combination the a

run onetime, portfolio. I there real rate estate of relate were that, clear in the is within California. is and within reimplementing to tax in it idea we And as but getting mean, ago taking is our our success reduction partners Southern mean, the advantage we real new to I our And in XX major that the think much mean, I tax now learnings. later. benefits we did relates We've all at collaborating of of to that which least properties, estate not some focus XX those our timing. #X company our any pretty creating practices, had markets those of forecast of in best And -- portfolios, seen our a no a primarily right back taxes call fundamentals, that days -- behold are do in because within expense, the efficiencies with of other benefits, days efficiencies, to we on initiative lo those the one have I

going workers' majority, were put increase almost dramatically that there currently the and the second obviously, run but are what maybe of to put line little growth a But to come can in place in vast a we're -- doing Some run in rate, rate. savings. about that to to expenses us that -- much you whether get contemplating, related in have well, more ability result of place Ray, bulk the with would give comp a our the well. these The those I along material reduction lower the we efforts and growth be ago. should savings we were are And in bit all program, that acceleration rate well expense But years beyond our depending range as ongoing we of half course, and efforts talk rate confidence in be of in mean, before. upon terms revenue that in our QX what increase expenses our in the bottom if

we where So good we're going. feel really about

We I course be have effort. There's of projects the programs of effective the a costs, are this over lot year. in reduce go and place a on we'll think increasingly long and that way to to

some so just additional Mike, maybe And programs. color on some those of

unique. workers' it. better it we a top job the was from mentioned, -- managers and our managing it we program is that Jon we we actively because It's comp of could do back thought on So took third-party -- something being that

result are the hotels. these our benefit program, that of we reduced -- of Again, a our at the as properties. independent So the cost independent

say -- than operating. versus it's brand-managed were properties, we've can't our controlled But more reduced are control. our by our we over when which We workers' XX% comp cost managers

R&D gone millions getting is also They've new Curator. with that's is our other a technology. out way a -- group. of So year. better side Curator dollars also We're the outcome. in internal we're

staff on tool new the have rooms efficient We're We can working put Curator housekeepers housekeeping tools in that and be clean reduce for is the staffing. result that the staffing and more AI lower will areas. up hotels volume where in also rooms a ultimately, pressure there, new how call schedule chatbot, in on place the they frees those the which an center will of and

in there's that more a there's those lot have could them actively we place. put that we XXX because place. So those of are independent we're And our flexibility of programs hotels doing, and areas a lot at in

see something Some in excited here. we of them we're coming the and others, add results more should the than but value about, quarters

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out new on but Santa solar in As systems Monaco many those end have properties. have X in Cruz, the also on of We've in systems, solar DC life center solar we also the we city. now in the the those we're we installing near programs HVAC higher-efficiency added of -- Chaminade properties,

there's focus So think time. in a we've and intensive getting And XX right perhaps is more the a things little of the over been gotten But things implementing this months. this some a just sloppy of last we've frankly, sloppy. bit much not way year, lot I on, doing

Miller coming Gregory is The Securities. next Truist of question from

consumer I'm are share curious -- losing softening luxury When Given your trade commentary down? affluent you of leisure For you if may to gaining competitive macroeconomic review to lower resorts just upscale I a reports set resorts? any example, resorts, your have downs. sense a any you any from leisure our thought seen resorts share Star you on ask competitive evidence transient on be upper you're specifically or do you trade seeing impact. price environment, to

competitive would tough mean, say I seeing down. a We're That's I one. the is Sure... no. answer not -- trade

during sort mentioned out afford people to what earlier rooms of in we've seen think being just versus I trading that can perspective splurge from back down the I trade when suites stuck maybe their actually the certainly, view a in coming of or homes pandemic. the of 'XX

Again, think we So within saw share that. the portfolio. I that's continued our I generally We've resort normalized there's no portfolio. doubt gain think to within -- we've

-- Our example was up points. we're an total, in up occupancy in was as for over resorts over index, our QX XXX basis

the more we've properties with So properties of dollars service in competing versus higher probably market. quality our and better I in the do been we've the think invested to with I with properties that's benefits don't think-- having the

thing. other one Greg,

weather, se. it's economy in comment to one thing don't a because extent of QX, it how general holiday was saw great and I materialized and it's also your yet. although, travel Just fact -- much how that question. But again, the we in upon much in any sort the was in cautiousness to based to shift we're was for Fed's want may I think per the extent, we're what seeing not think we're slowdown it some softer respond we're a not down. it's a hard And how at I the policy, more performance point our much the saying, from to we're about not in going materialize. changing to To hearing later time. hearing what pragmatic What differentiate was cautious trying just we're this on economy be those impact clients is to X year. have longer slowing higher this It comments hasn't

to have approvals XX get You travel. to

of we've normalization than in the booking We're for group other from the talking trend business volume We base. the not are seeing not about. hearing been those a lead things customer reduction that

question next coming is The Powell of Anthony from Barclays.

rates higher what the transaction know you now. are side? think guess I on I

broad So and you urban the overview volume would for assets out some be Maybe still my is interest helpful. there? seeing of are a how

think what uncertainty, the think Jon's question, year, the would tell the wait everybody I the pretty previous answer I the as strong. to I you, -- to in think I to for the going we do. started sentiment at continues the was investor and point earlier to on is Fed the

action. spring a I was kind of there to think

pivot. I that's wait somewhat think people that, been to for Fed delayed as the

I pricing. there is debt impacting debt and that the that's availability, but is think expensive

think rates. actual pricing So out that to I of there's think of terms real transactions, but point, in there, some the discovery be think I that's of we base I this some volume until going movement in see at stalled continue still somewhat or terms delayed to

a there's the And not lot today. market on

fact you tell surveys mean... the that's to broker And -- financing. the it's listings. or to that the to BOBs say that rate What also that translating the any difficult out interviews, I are to closing of brokers' my seems survey opinions secure I not just into I'd conversion doing necessarily very say of from be of a of you to given small there listings of is would but there, very, as values brokers. type is kind ever brokers speak, or necessarily the not high probably I it's doing so would of listing a of been, lot level very that as

we and to including we everything on active successful generated proceeds. the reduce of the $XXX interest mentioned, with transactions given Fed this as that going up, Anthony, year that million just had. bit be rates likely look X look are slower still year, We keeping We'll number were take to very Tom now the as a that's over that. think going potentially rates for with it's things then transactions with, to at maybe with last And of happen Certainly, the Fed. But the the are us. and sales we little

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

your and rules everybody. job, follow Great the I you'd Great. actually didn't questions limit think to one.

your with we Clearly, X that you we and you, thanks doing additional appreciate forward that. starts look that and interest at you the to we talking We're to Pebblebrook, we're questions and happy with here have. next call interest. Please for thank in So for Hilton you for enjoy chat quarter. your

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

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