Pebblebrook Hotel Trust (PEB) 25 Jul 242024 Q2 Earnings call transcript

Greetings, and welcome to the Pebblebrook Hotel Trust Second Quarter Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Raymond Martz, Co-President and Chief Financial Officer. Thank you. Please go ahead.

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

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

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

our SEC website of potential risks, consult filings For reconciliations and recent any we visit additional a financial analysis comprehensive of for our please and details measures most non-GAAP use.

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

We and our to that outlook. solid most of leisure bottom corporate markets expectations, quarter exceeded demand are hotel healthy pleased our demand resorts. met across our financial second urban Overall, driven our well transient share and business results by line group,

Our capturing and line well, are market flows, also exceeding share our newly performing in repositioned cash expectations. ramp-up or improving redeveloped properties and

both rose year-over-year intense increased RevPAR expenses, range. by QX cost X.X%, our substantially initiatives XQ efficiency our middle Operationally, operating better-than-expected Our were were profitability. led total our outlook efficiencies offset slightly hotel tax and property X.X% RevPAR in pressures. than on lower inflationary of cost-saving reductions, the by of focus more to and With boosting which operating

the end FFO adjusted EBITDA outlook by million. LaPlaya, midpoint of a $X.X of proceeds million related by million the by $X.X and interruption QX $X.X outperformed our As high-end QX further benefited EBITDA the our and and midpoint per our of QX our QX from $X.XX our share a for enhancing hotel FFO same-property also $XX Adjusted outlook EBITDA range business result, performance. We outlook by and topped exceeded of top outlook positive and to exceeded the $X.XX. by our million. higher-than-expected midpoint FFO by of adjusted top the exceeded at Adjusted our

hotel same-property in and which outlook our full FFO, on raising XXXX are EBITDA, we Jon adjusted will year for Additionally, later call. elaborate EBITDA the

catching by calendar, with our recover, the Our urban bolstered ramp-up Diego continue robust to convention San redevelopments. property biggest the wave, recent markets good weather of and a

Diego over California San generated in rising Recently, propelled RevPAR success, Margaritaville repositioned impressive surfing of La Hilton this Gaslamp Cruz Quarter quarter Beach Quarter Jolla growth XX%. an the Diego X second Hotel & from while This improved of the our many wave XX%. over coastal points percentage improvement San XXXX, Diego Our increased to an San Boys. performance properties RevPAR, San properties of in our Chaminade Resort by XX% Diego occupancy from to XX.X%. Riding Hotel quarter's Estancia this and Spa QX Santa epic RevPAR song classic Spa's almost inspired & properties Gaslamp

the by American slightly at through included expanded in and Underperforming occupancy were properties channels X.X%. approximately X.X%, second urban and Portland, enhanced channels, achieving wholesale urban occupancies We percentage climbed solid leisure transient our lower markets international at grew while average and by properties Costco weekday percentage as demand more RevPAR percentage urban by rose and Express, markets domestic X.X growth driven occupancy while as points our and by with XQ, well quarter. increased which consortia points, bookings impacted Washington, urban gains L.A. through demand demand RevPAR increased along healthy X.X San our points, D.C. corporate, gained as such other albeit Our occupancy in Boston weekend Chicago, channels. demand, urban total Capital rates. Urban both group by recovery One X Francisco. Overall, in

RevPAR leisure rising growth travelers. by the resorts X.X%, to X.X decrease in encouraging occupancy percentage quarter. Overall, observed our Weekday demand points increased a groups from percentage occupancy last points, ADR. resort driven X.X% due weekend strong points, our by in by improvements from second Turning grew by the X.X and in quarter compared percentage rates declined by improved while primarily We at to X.X occupancy weekday occupancy demand same year. weekend both to resort corporate properties. Resort

Although ADRs part We've to have decline at transient normalize, is increased segmentation. resorts demand of continued corporate observed this than our in groups, average which changes rates. to attributable is weekday priced from lower

wholesale discount added other accounts we've Additionally, leisure occupancies and channels. from

While of in the to with still more segments, traveling, to demand the year. X.X%. Despite growth while in The resorts some deals sensitive that RevPAR price The travelers, behavior in ADRs, rates and and discount increase have our a in from compared are is at This the a contributed cautious indicates bargains. the leisure booking corporate yield shift direct of levels consortia half generate lower the seeking XXXX. significant adopted in out-of-room improved second properties, compared these of reasons more moderation ADRs total groups segments customer our maintained for by spending. line resort and premium which the one healthy we've outlook becoming channels top XX%

modest This May the substantial increased in affected experienced rise back year at was anticipated by Florida, RevPAR to this April. Early conventions was increase mainly increased holiday of weather OTAs, and XX% Florida which with mix. leading QX, This major Transient than was basis, we last in primarily growth by a international period revenue our year. the consortia, strengthened same-property last year. driven June April increase. last X.X%, year, from Overall, previous by of and X.X% RevPAR in a supported group demand our a May. to compared Southern adversely cancellations saw to X.X% group monthly segmentation airline same April, from by demand bookings softer rise contributed and X.X% year, gains reduced shift June X.X% due bookings. On saw a in notable decline wholesale corporate domestic over also customer group demand the over severe our crew in uptick a and Regarding X% a in XX% resorts. shift the to moving representing to approximately

week. Two and Additionally, Wednesday the for results our for Newport delivered year, in on leisure demand hotel opposed Naples, holiday and Juneteenth financial financial business Island as impacted in last falling this the LaPlaya properties -- positive same-property quarter. results the year, Monday not EBITDA, Harbor to included both a Resort negatively

Harbor, loss generated performance opened year, of positive $X EBITDA an producing which LaPlaya generating million in with late to million $XX from Newport expectations, contribute of expectations, exceeded April, compared period well in for being same $X.X the guests million is and EBITDA. LaPlaya's to by line last Encouragingly, of Due of $X million million EBITDA. prior has $XX.X EBITDA our in received $X.X increase we our the expect to year-to-date, momentum, resort's LaPlaya a over the outlook. of year. million was

for increased by $X estimate with better-than-expected to into XXXX BI our XXXX our increasing are incorporated progress million insurance claim. These outlook. the have we our LaPlaya due improved Additionally, results

to operating room an EBITDA total just efforts a and only by to across efficiency initiatives X.X%. significantly almost margin positive the This all and X. fixed and they ongoing across item outcome we X% of line are through expenses in all throughout in we strategies EBITDA completed improvement put microscope, energy, processes insurance, portfolio. And increase part speaking initiative premiums Overall, expenditures occupied on will our cost above X.X% expenses operating rose to calculated of demonstrates by business the departmental benefits, inflationary every achieved expiring rose cost X% under increases offset the compared portfolio. successful undistributed estimates a efficiency declined X%, increased Notably, a by value about reflect per a before our enhancements renewal insurance program. favorable fixed increase last expenses broader in XX.X% increased of by This and our on operating declined our our -- our profit our focused significant reduction recent same-property XXX casualty of quarter. benchmarking our property XX% These insurance combat no with inflationary wages, insurance by indicating June X% prior other terms. replacement premiums efforts insurable basis costs. Gross overall by the before same Our despite insurance by point and by expenses coverage QX, approximately in higher costs, a to These or basis, insurance rates X%. from in quarter. We've X.X% maintained departments results. and bolstered to of hotel pressures led we've declined a as changes market. We total And overall improvements energy expenses, our operating highlighted with year about and

Skamania over excellent April. of this we completed launched several Estancia into weekend, completed to $XX million was redevelopment investments from are lodging of Spa, units, capital transformation on we and Jolla The which new all [ reviews busy & opening major period. existing up finally, introducing cabins, receiving the multi-phase Island luxury customers million at X at strategic redevelopment, of partially the a and destination X finished attracting combinations, million X-bedroom Day Lodge, Resort alternative Newport Turning was $XX first-phase after X ] new La quarter. New completed England $XX and Harbor our villa million Hotel including reinvestment unique the glamping mid-April, end in demand. And summer premier booking $XXX well fully Memorial program, our And

announced expect quarter year, Viceroy returns share continue million and we our which refreshed We and completely quarter upcoming properties be conversion year. Monica into excited and Le soft by manages XXXX. The by of over these mid-September Delfina $XX money of fourth scheduled The a this will portfolio second refresh will expect and to property replacements, by market to undergo be Highgate, the and moving continue approximately night, completed FF&E gain a same of goods coming our key we cash are earnings market. in who years. In costs Delfina an and in we for of the Monica this the Centric release the Santa commence refresh, to hotel provided in redeveloped cash property Monica, forward, it involves Santa last Hyatt. will Meridien majority with Santa Hyatt the have the also The to drive of primarily managed offset to

anticipate from the So, notable or we flag renovation. disruptions change don't any

We only the Rey to desirable in only the in brand invest competitors market $XX this million net we and remain track compared $XX Del Santa we for Marina to on to flag we million And have key the are very CapEx the excited will Monica money. highly within high the of Marriott the currently year, change family X have high-brand about -- overall, family. property

refinancing XX like our Regarding we significant good June $XXX year. thanks overall to of fixed debt attractive debt million remain an with on to this our comprehensive no currently October cost successful XX% Jon? the of the now that X.X% I'd over cash and maturities turn average debt XX% XXXX, until our is The unsecured. With of and in at earlier call sheet, update, balance with shape is weighted Jon. to rates

Thanks, Ray.

second As overall Ray our improved performance implemented pleased across efficiencies indicated, driving better results. very operating the we're substantially than successfully line many and quarter. We our forecast bottom in portfolio, year-over-year with

outlook slowing we're at growth future consumer. showing our industry to rates, overall a increasingly increasingly increasing These and weakening up operating midpoint pressures. When same-property economy. concerned the EBITDA exceeded foot FFO the by our turning continues Our growth by on should of in while clearly growth, brake, top are efficiencies inflationary and ongoing it's a and in EBITDA unemployment, million range, positive middle line quarter, second consumer interest not and they're reductions, yet help cost-conscious gradually its results hotel was slowing ADR one-time million. restrictive the and adjusted we quarter, for for slowing revenue industry mitigate the employment we're keep look by outlook spending, Fed the we The $X.X more cost cost overall about of the and demand in encouraged $XX

growth little half more RevPAR for year, the second As a of this growth. we're a particularly result, about ADR cautious

urban demand across our portfolio, Ray industry expect indicated, suffered weekend pricing at demand rates. both transient. occupancy continued and the occupancy as third as further our edged As has while group remains added saw as urban our on year-over-year but leisure travel well the in flat. Weekday resorts substantial and the both in rates at become we recover, generally higher more remained we pressure quarter business pricing healthy certainly portfolio, as to conscious. and continues in and customer price In growth portfolio, hotels our our leisure increases Leisure average lower our we

stemming the As to positive RevPAR in the earlier strong continuing growth reverse across occupancy revenues, for a our outlook significant X.XX% spend all from from year we second had thought would of with expect our and the remerchandising still leakage our lowering growth this this healthy increased result to out-of-room X.XX% occupancy. by we in and year, of year, we're portfolio. total which benefits increased Despite adjustment, ADR, this half driven redeveloped in the turn of efforts

efforts property to and estate increase successful operating We're forecasting tax additional adjusted FFO remainder efficiencies, reductions hotel the and share. taxes in casualty outlook in lower achieve any our reductions adjusted not increase create and allow the manage material Additionally, estate to XXXX us our real a per and of real for year. EBITDA or credits AFFO insurance, for EBITDA,

the to know additional next reductions when of efforts these year current timing substantial several process. benefits, However, deliver and expect just we uncertain don't over prior governmental continue We the the these will given do years.

We're to driven total range to to and X.X% of the growth. For entirely by to X.X% revenues QX, to by X.X% rise we're increase X.X%. occupancy in forecasting total forecasting RevPAR X.XX% by growth X.XX%, expenses

are properties to be urban growth, than calendar to to RevPAR although more will year's slowly expected last recovering last Angeles drag San anticipated. this compared challenging from Los a a Our be convention lead seems to strikes year, Francisco and due

San lead in and convention Washington, properties with Chicago, Democratic with August. strong expected growth Diego, market Convention our performance, D.C. National urban quarter, in should in robust the Our the Boston a again for calendar and

flat see resorts to QX. in Our should growth modest

Resort properties, help San Jekyll San Chaminade should performance Quarter, Diego all our Harbor in Gaslamp La Spa, drive quarter. Spa Our including & redeveloped recently & Club Resort quarter, Hotel Jolla third Resort, Margaritaville Newport Estancia Island Gaslamp Island Hilton the Diego and

July expect quarter. weakest to We the in be month our

holiday from impact travel with the the October. and However, benefit September months, from less which September with the holidays business Labor August early and will be September on Both early Day August. entirely in should an August falling Labor have weekend Jewish Day, good starting benefiting in should in

the outlook, the ADR. by be healthy by offset by supports room group driven X.X% timing. We're to in for X.X%. the positive pace nights last compared but transient formulating by the In QX although outlook. X.X% pace last ahead is we in total given X%, year, quarter QX booking our expect window pre-pandemic a for than ongoing revenue Total X.X%, by Our the that lower our this and with for pace is time same a increase up decline will year. Transient with XX.X%, in XX.X% pace room compared revenues nights nights RevPAR by up strong same lower normalization room increasing ADR quarter, pacing demand pace just same Group ADR to revenues in pickup and year, particularly X.X% year, is about by with advantage our is ahead higher XXXX. are QX far by ahead strongest by pace the group room last advantage. leading showing quarter's by X.X%. X.X% currently by last X.X% group group X.X% is a revenue Group the with quarterly increasing ADR nights time the encouraged over time and

growth redeveloped and they XXXX to properties continue share in ramp recently Our up. as should gain market help drive

market we to a urban Portland, X continue to and expect tailwind also in in provide and underperforming urban San our Francisco Los XXXX. should positive our Angeles, recover, markets Additionally, XXXX,

as for Our Westin in-house Resort. at is of Beach markets Resort group well to our year group larger Margaritaville pace convention many Copley, healthy as properties, partly calendars such as again favorable business Point strong in Hollywood advantage XXXX of most Paradise due group and next our

for year in engineered Coupled the we're certainly and successful, like optimistic provide many and will lead Our resort want by a to on on year. It of up-cycle industry economic a soft our to many markets, Fed, our next people the if a feels for boost redeveloped a we're properties new company next our very should supply Pebblebrook. and very that positive positive landing to for performance having fun. and And environment, a little urban experiences our also and brink commencing spend for strong with to favorable industry continue very our year. years

So, take Pebblebrook advantage secular to trend. favorable of is continue to that well-positioned

our remarks. So Operator, with may proceed prepared Q&A. that you completes the

Wells Today's question Dori from is Instructions] of first Kesten Fargo. coming [Operator

growth, of reduction cut of demand? in [ a if guests slowing price greater for the ] an for XXXX it if reduction? that Or amount and drove leisure just of high-level your sensitivity you dig outsized more certain markets into In RevPAR can potential general was

are think I reductions and sort falling back demand, it's and markets. our and the we in the L.A. were the resort extent, I lesser ADR biggest -- resulting impacts distribution mean, some to Yes. Portland channels really and, demand, in the like where weekends, reductions not they're pre-pandemic. it's Francisco the of markets regrow really in we to of it's falling but underperforming on San But a as in

Floris Compass next question The van Point. Dijkum is coming from of

I some had that to guess, on focus in a I presentation provided question of a I EBITDA. on upside RevPAR, know tends but you've everybody EBITDA. about -- a talks the

hotel are significantly? I contribution? little give delta, if you million a And in that's Is -- think the that. horizon year in $XXX A that going view, EBITDA X to big what office? Jon, need with greater get to is to you that particularly Is travel to are to elements get key upside. things it of, the urban. Maybe, return to comfort EBITDA the know you chunk looking it big your is in to a to -- I your it it that talk urban bit give that you're is increase X -- demand? opinion, your at of what your that what time that us But about could there's the are happen, EBITDA of

Sure.

the portfolio the terms luxury on XX upper returns confident and LaSalle, drive at we we're comes returns redevelopments, revenue upscaling upon in generating from our investments part the So, outlets similar based a adding did level of we cetera. pretty other the a in to over meaningful Pebblebrook, experience, upscale, in And not time of upside our amenities, where that the properties components, ability EBITDA from in the those et at only to but cash-on-cash strategy. years made

the to relates that that other it or and are cities As the during pandemic there clear didn't. created created I it's cities think cities, that issues issues had

venture system, at strength strong got a take a cities strong which economic underlying performing look like -- capital in that the look strong fail. an Boston, You has it can example, a market education the suffer It's biomedical degradation quality like as to got a creation Francisco. a similar and lot San of of at willingness sort culture life markets. But as and didn't Francisco. it's It's and technology got positive sort of a occurred of San a in

a policy of so, that And was lot driven.

Some little that suppose, Boston Francisco. is in a is, in I difficult more it of San than weather. is Weather year-round

Some of governmental policies. to these with those reverse these in as quality it as terms markets not recover the but city, the than as perception has of Angeles And like cities do like haven't been only in the life Francisco of actual confident -- which other actual, as San markets great of the that it, Los to often and are cities cities that strong as recover takes longer going we're these and impacted.

But office People of same little as environment don't come is out the these to it's the from bad and an the part All into right? coming example. people work, and tends the approach office into get to using going bit amenities. of the suffer it -- of office, circle, the vicious around cities want a office don't the the hybrid reason to a is because around because but they environment the like aren't

that and X more headlines at continues demand a as a people there's that back of work cities and going to is about of companies, of some the other get in stable impacted think trend we until what these I this is. But X. to So other back come have companies, recovery we the issues. we're week, least the sort read including not we trend the life and and level issues see these more that days by requiring to And if continue -- or negatively companies, technology X been to components their about new demanding to More office. continue

is of inbound to by impacted some recover. the So fact more that the international it other to impacted slow really inbound recover that, Coast West are travel. Chinese and slower being That is the issues, market political. And in in which recovering Markets ways is by because already Boston, probably recovered whereas issue. these have travel, it has mainly leisure a go urban leisure didn't the travel look at still you markets, like same a has to on

see recover, the like loops So, their improve we prognostications around good assuming going we that fix that, and and that. and and these we -- issues, of don't they're cities there themselves them look these doom to things see and bad trends of were to hard forecast. We some from they don't a into described. cities any tried we've of to But loop, I but are these on think take to recover. West to as going are And that it's Coast account, doom suffer think slower

So, will we're cities come confident the back.

the it those to can continue whether You gone amenities to we said to and cities food, and times, through recover difficult it's it they cities. and an it's have one place, offer doomed level think it's We of the in will in and will there's cultural, history incredible back shopping, the it's reason And people 'XXs through were had whatever and continue a for they events, amenities it's architecture, all be. is recovered. go and look whether riots it's 'XXs music, might whether sporting whether whether people whether cities

Ari Capital from BMO Klein of The next coming is question Markets.

that begin that to spend conscious And more soften been a with more begin back see customer? something that businesses to you pull consumer, your what And become then, could addition, out-of-room higher-end begin back? going Maybe is strong, but of conscious? to did level when consumers the has is to in price concern

Yes.

segments. ago, this upper call and bleed, we're luxury the unusual bleed very some little extent evident that's in And the for and the to the lower, not So, talked we've a seen we quarter. X seen into this about third it. to we've upscale said, that we in what bit ultimately concerned and It's on months it's

it to They're from TV comments it from on Ari. Where that's in when started, same domestic a customer. made Isom so it as And And he seems fairly Airlines mean, here? industries thing, prevalent I about more -- other I the Robert American seeing goes about listened well. this price-conscious morning.

sometimes mean, yet," happening So, happening "Okay, not your relates that if but we're to well trade question elsewhere, about and from liquor people, us here to question it's our wouldn't from the the can compared say, can at to do for happen liquors we as spend, number we us liquor these which the it's leisure wine. we we I or The down mid-scale expect tells liquors and that's liquors, is most and and things, with what they look it they high-end our out-of-room it should is And beer year as I think to to that's lower-end seeing. And to last discretionary, and same some sales softness. down a are asking, exactly at surprise that related see all that, heard at is, of our customer, properties one area intuition here, we've you're properties.

us just what it. spending So It's be lot likely we're that's of on a time material seeing. not focused for to

the in some Got concern that then a there of weakening of is to segment? that side begin And business see on it. level just things, you

We what limit We increase at We're our increase not travel. that about that point as We're closely at We in and across recovers again, look any teams you're they're concern this we've cancellation respond not our -- accounts, in begin from always there's that. volume all to and looking continues which Well, Businesses, the feedback to monitor it getting sales it's that. unusual seeing from teams to pandemic. the their seeing for at yet. very of economy. property accounts. the a slowing corporate about and We to talk seen attrition at our businesses not the corporate portfolio. when

actually going wouldn't this on we transient, at And side slowed in are far. so in business point haven't corporate time, side, in us or seen or but the if either opposite to it which down. in They're group the so, it continuing the anything improve, surprise direction

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

time. the Hey, appreciate

you Just from perspective, as super-high would year? Pebblebrook's into drivers next level, from what and view renovation key a growth repositioning

Well, Newport well. the whether Diego clearly Hilton the Margaritaville key new I They're gaining Resort, Island we've improving Gaslamp. group picking They're They're Island up recently it's properties the group were higher-quality Downtown into the on it's books Harbor Club demand. are Embassy of that and that renovated many completely burning the would ramping with repositioned drivers Westin They're it's that books it's in were and put even the they apply And Chaminade, Jekyll our San product. redevelopments Estancia, higher Francisco, to mean, Diego rates as in their X through rated San lower the on more renovated all back the Downtown, San like share. They're done, Resort, it's like Hotel, Suites in XXXX pricing. XXXX.

demand economic reliable times returns is regardless that's We'll grow and if stabilized is driver. think we or growth more slower if economic more it good gain will environment. and demand if the downturn. an have of share growing, I share to So take and we the longer can can gain We most it's

main the that's So driver.

I names year been as luxury of year, because rate last workers because pricing the collection most in market it continue We continue in things this big encouraging to underperforming mentioned we demand seen but we've opportunity, last part on to about has L.A. contract the L.A., that as hear of a has Portland, is resolved San the hit comes bottom, below have in L.A. And which in the growing. the production strike, decline the was for X competitive think was markets our back very as production not Francisco, then that of and this Portland properties we

next this to LaPlaya noted, ramping perspective. just also year, redevelopment add we the on strong. that, a a in but we'll in be there. and should we we're coming season bucket, normally forecast That 'XX hotel that's And which from full a serve Duane, -- this EBITDA think And as up Naples, into have a in year don't as about tailwind

that So be another hotel tailwind. should

going may hotel the as addition because impact headwind properties. we're presumably beyond be to much from not redevelopment headwind should Now BI be a side, in to certainly LaPlaya operational another a have but 'XX, our

OTA? interesting. if to and you're follow-up, but channel are too much making the maybe travel And kind were a we're thought ask traditional on consortia your new compare the channels how I just that these I did could it, comments new economics of about a of and utilizing like commentary What

Sure.

One has a and couple American membership Capital Obviously, channels, has started And a base, Costco of Costco travel same. Capital attractive we loyalty. they're a than has huge it OTAs. And pricing Express. So hotel their because the of own their the that done business and find more we huge the the example One find advantage as cost are, taking card like attractive base. has is an the and

of these companies. a by to anything, what X if a what to are the the and oligopoly OTAs, dis-intermediary an OTA a relief or frankly, competition So, -- nice monopoly providing are is

those the and Duane, also look we also, income at consumer Capital higher they average One for a to skew users. AMEX then users, of And card level

the in So lot they too. spend more also property can

it's come So, good on. to a consumer

Costco, with Well, evidently, that's case too. the

package it's a So one and -- because there, bigger expensive lot if else. than more anywhere you buy

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

the if guidance just X guidance. X insurance could Ray, to had new you, previously today, the higher the renewal taxes, variance to if months guidance what you you your and change, favorable if BI items; property rates versus in compare it to back ago anticipated I attribute property lower the delta and could with relative on you start go

how but individually, impacted You don't guidance? them have tell to the much X that you the change us it the and if could to of bucket do

We're versus about in came Well, months taxes easy. some. million X property They ago, Sure. are expecting so $X higher.

So for guidance bit well. was ultimately a switch. that the little better the about million higher is And as $X then BI,

a overall what $X property dollars between weren't the in a it's X% hundred So, there. And We versus and anticipating then few get items insurance, million we'll month million a were we increase. $X the before. on thousand X expecting savings

little was it higher. of So, kind a mid-teens, bit

So overall, little a bit better.

$X change guidance other then the built close efficiencies And it. the million that of half some to that is was operation the to $X.X for we've accounts that in. million. look, And of So

the bulk a accounts smaller savings that operating ago. part X are the taxes So, of just property versus for actually months we of it. what -- The actually a expected

disclosures whether to a kind supply, seeing then I'm third-party the which of a second traveler way ask new to quick starting the time the questions, question low. I is to for at remains about And appreciate very they're take kind psyche? And is going the changed related -- starts. Yes. Number are just all? X kind on that's providers data new least big I'd industry X of its ramp you could call one, at cost junk remains Perfect. so-called the -- leisure of a rates, kind wondering think, X or your whether driven the you Jon, in really some shock it. that's outlook significant to into of for which years picture new total supply, low But X significant that, supply, on fees, by of value if pushback work maybe consumer of

Sure.

economic disclosure, we it and the to that. don't. places short So, has the no. think is the with answer We disclosure anything we -- have think environment, and really where haven't we to we We as it's it overall that have relates don't do places

drive it in about price doing more like it occupancy margin -- because about that difference again, consumer per booking isn't the We're any it's seen to haven't sensitive. booking is not really the behavior. And and not they're looking It's se. at elsewhere. more additional promotions We occupancy at

we We're them discount prior channels that things until half and pandemic, to we the hadn't of the it's were just early this those -- more some And we're used year back of more which going doing we doing used now. year. through of So into before. last

I growth. think all, first supply good question, groups at it forecasting supply I are as think the that your particularly to relates don't of

really years. that for XX we any come. And I markets of major starts as Southern Bill. challenging or X larger, the years ], California, and at a with seeing years a the in think only a to Same like difficult very extended major X minimum, more X think the -- in major going years to get to They're to they're what resorts, number an is The seeing really And given seeing supply still for comfortable not gotten not [ build, to we're don't are We're certainly the process in in feel start area, like to and cities we period. to South X the of build X harder like has example. anything stay, thing year not very the Keys last X.X, generally start build. and growth in is down. we select cities, smaller, mid-scale anything service

the So about supply over very, a next growth limited good we years. few still feel very

our deck, the these lease look garbage our it's in you of the garbage not now markets, we that in, about basis about updated And update average. at in growth weighted right actually verify, our rates the year third is -- it take go presentation, it this XX forecasting supply is lot markets, in but real just last at then, and the if or is, points talk Bill, markets forecast, and night. have out. But our about parties, data supply that we we're which to in we X investor through frankly, we're a regularly in, hard we is year We

where has of been X/X about that's Now it pre-pandemic.

and internal can So, feel we data reporting and better we our here. fundamentals that. forward feel going about those other third at verify markets about good some parties numbers, least can't whatever But the

Jay from next coming question Securities. The Kornreich Wedbush of is

RevPAR that X.X%. was only I believe June up you mentioned

which so, for that you're into May? supported the July, what seeing that And deceleration RevPAR such I'm trend may negative if wondering And continue in decision? caused may slipped be guidance June a be

Yeah.

mind in portfolio, industry mean, either we're I don't that have properties hundreds we -- XX in see thousands Jay, you the data. not in or have keep have our that that and So, the or brands

our happening. be on so much the may each as events get by that market than specific that month events markets economic impacted in or overall more go tend to So, that

talked was we about it. May there month very a months month, -- compared up So as April. unusually had around this set on strong strong our to always in an the call

look So May trend any at I wouldn't there. as

particularly our Juneteenth June, calendar overall convention I in a partly had but -- the this which the industry, portfolio, Wednesday, dead of week fell think around just center that for better a because killed on really the it even country, middle think year it I probably overall.

I And so, a maybe anomaly was But that more June. part than difference. was the big of way, May think of in an a

September versus significantly we achieve -- X% in a digits. are but year. July of ADR on I gradually. the we're to month that over up slides bring though QX. outlook be August now, kind X% of will growth between as to half growth X% July, have months and about X.XX% running the and pickup do continue demand a think bit RevPAR of average we a to industry the single like year, rest the big see for don't to in the right low think a and And would in to August us for X% September And good positive second we'll That we like little X.XX% minus in see our

And this -- variability and So, data. instability trends. can week-to-week and on glean hopefully, us, separately you sort from for versus bounce going that months from volatility the of of and I data we'll about the month-to-month what's and talk wouldn't around

dynamic? want make or think you you any lower just do there how which was describing slipping, based holding on to cost? think people travel then a that? support slowdown, lot your Got still the occupancy if to rate commentary occupancy, was more. that but at And mean, the That's have Does holding of as you ADR Do RevPAR previous up one versus you expectations. levers I some largely helpful. like you super about it. to feel A just maybe how just relative is were just up do about that but

Yes.

mean, we I So, got like we than more like to we have both. ADR but occupancy,

You can't growth strength. get without the ADR occupancy

the demand. starts half about again, by that the positive the demand Hopefully, the macro. everything And So concerned turning we always in in with of holds are encouraged up But second we're QX. year.

the through use in base some other revenues which more a whether of total but sale it's third the As sale sales, do or deal we and way in part I deal it or to additional discounting without pricing will how quarter, we whatever it's more weekly is with sensitivity do relates is with promotions it, that mean, through having flash a prices, it lowering might our did drive our properties channels, be. to we to what demand of drive

on So we're that. focused

do trying rates historically. around as trends to and take those how around out non-holiday compression to trends we're we of play up a move we how these industry the of we than perhaps thing we and see other The get holidays view are press doing weeks this have is, more what where try better impacted done advantage and

where So in little other to pockets. bit sort of respond growth of that's is drive way and the a and take healthy rate advantage demand more those

June. detail addition first that beginning And to the in mentioned, to of your a Jon the on don't forget question, impact add storms had Jay, in Juneteenth we just just

a XX in about had that point So basis impact on RevPAR June.

Juneteenth, storms X%. would well with over look June combined have if been So at in RevPAR you the

then or in I just as there's but to and lot to as do want given conclusion always that. noise a of June mentioned, a Jon there's just, I to know So, of detract draw May July month-to-month, that could worse. a and therefore, tendency of any month. lot is things a benefit know,

question next is coming Citibank. of The from Rose Smedes

ask on is system? property at conversion? provide Marriott's the case, [ to party facilitate Santa to money the key Hyatt wanted all? keep process the just This I willing to guess, the Monica the in Marriott. Burgess for Hi, either the talk conversion Can for Or Maddie about I ] Meridien you Was Smedes. to about just

Yes.

get I process, no the to kind east. you goes Hyatt of a market in Marina west on Hyatt also just any are the and is I until really mean, There's it mean, there is this City. brand even way in it Century we that L.A. the gosh, of we there. lack the So, but family goes to, I competitive particular Rey, from competition through think fact the until, of all Santa nothing and which pretty the went case, far del a There's advantage chose Hyatt beyond perspective, going side reason no properties down beach properties Monica the

family new It's you very be to for but sized area. was into. development. Santa a would this brands get in Hyatt it's to difficult of have fact, There's felt their good a sure them, Monica felt, brands to can market. a very a I'm little attractive to in strongly So property, condition no the -- market this beneficial they good that in property ask

mostly arrangement. We there were so, entered attractive wanted to that there just okay That's why to key plans the ready Hyatt make our an refresh. and We furniture. frankly, sure indicated and we to of that, in already, Hyatt addition was focused were, areas on. they And are completed And with to it. we into all to franchise already in order we design wanted brand additional doing add, otherwise weren't a related were OS&E was couple Centric some some money. We things refresh that a

think do lack We well the Hyatt's the So strength of and of for very because area. exceedingly players. because attractive in will both clearly, competition the also property

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

we're to bridge, wanted just, of EBITDA year's LaPlaya. think, of point correct a million X, slide bit. I same-store and to I And starting contribution deck. And if be some go the Slide add, joined the back with start I this Ray, just bit But a the of anticipated apologies, is this then a So, from may where number, Jon this this around late we portfolio or we think, Ray, off rehash. I little if $XXX from a bit

A, of are there million. $XXX the or Is kind of is the is I X% mid-single-digit. the probably can a that on the do is Just any validate we And of million. It RevPAR up as now the X.X%. right better on the business? bridge headwind get decent other see to is if pieces But to; X% mid-single-digit to we in kind based expected core think around headwind be the for midpoint a pretty leverage correct? this we point think Or now that's is suggests only the wanted moving some just like right $XX around year, the in pressures just at about measured kind be total core again, of range. business, to you expense the in portfolio, spread that? that, guide RevPAR then -- in around the around And decline than look which that it

assume to we that first property. million asset midpoint, to think of $XX we're our stabilized of manager just and 'XX. going again, our get we on the same hyper-focused the are for on that Well, the not numbers ramp 'XX. here we'll LaPlaya, be up then, there. And a necessarily there And for the and there team clear, have EBITDA good don't not guidance, excludes believe because $XXX hotel midpoint LaPlaya our kind LaPlaya going and it's for We're what correct in that's is to around million. But get

does midpoint for kind range, data really provide we when of that also that's the quarters well. Newport as include So that -- some some and same-property

if is a thought we it there. just with confident have we are the would noise little we get put have there So, was We coming to out, of it -- bridge kind -- we're out still with that it going differently. modified there. But would

We'll that is is quarter rather do from bump into some there's expected redevelopments, goes. But economy. doing. what's coming Is ROI very on seen what coming the faster a lot speed here have how we a going urban because short-term? was Is that not doing than strong than Fed here, this -- markets the back. in maybe to little this have it a of others. recovery a Now, with the run the getting on The as we've or see with harder that landing

talked LaPlaya seems you bit L.A., San as of before, redevelopment So about urban quicker in those a and in take at missed. moving like may earlier markets in recovery said to then the some a ROI Francisco the it we some and some certainly, call, of which the Portland, But markets. little the of probably pace longer, than we the be

mid about range, growth revenue growth. positive think, if bottom a I upper middle you growth. when probably end of the half, end, we're the the the the with second to And in negative to to EBITDA revenue have think probably the Shaun, But ranges, we EBITDA at growth have of in the we're going upper

basis. We're on show success half than So rate good have is a continuing headwinds estate to that. in it on reducing real with growth expense we've our run some percentage our comparison otherwise focus run do We expense higher tax second had rate. the that

is core of So hopefully, helps on a outside perspective the you portfolio how Newport the that and doing. give LaPlaya portfolio,

it, Jon, then for which liquor interesting my the for and even here with earlier And about one is, the TRevPAR a long for Total follow-up and of right? much but piece. rooms post-COVID of has -- think the just comment Pebblebrook dovetailing industry, outperformance is to comments your the sales, The on the theme RevPAR probably I time, of, some relative certainly Great. let's call been

let's Is what about But comment and just holistically As you're do you rooms, let's right now? spot to all? down I that the customer, non-RevPAR ways of call does that? that. monetize of seeing, a offset Again, terms or like are from elasticity at possibly from risk activity that, in you team most kind probably it, in piece to just you make think different that in creative kind regular how cycle to -- the of you're trailing can to difference again, thinking guest we a call a a that RevPAR? there revenue could the pull the guest be think, in to actually that talk trade of levers we that other behavior Are it, TRevPAR you standpoint, where some suites leave from, in experience

I mean, look, could always mean, there's a risk. it lower. Yes. I be risk, is there

very I think it's low. very,

I think we're -- of bunch reasons. a for

that lot is, properties on prices. added we basis. are that our additional We've one Estancia. We an We've have We've of continue raised ongoing think came added pulled drive redeveloped. levers be to other can we've re-merchandized from pulled They back in Those just revenues. charges past. I that the a we've outlets.

generate cabana pool. rooms the have We created surround They revenue. larger, more more luxurious that cabanas. We

more in Estancia. That's done. at sold the X outdoor already not of and taking rooms And were we've away other and from from what added rate and business increased we it are Skamania, X, X X-bedroom quality These glamping weddings to outlets. the a things on them addition make cabins, draws community or and we've the in villa, different where events. We're attractive business run average cabins; there, take event for indoor the the bar, of lobby luxury a We've people property places. lawns in at have to adding into the But lodge it's they property. added units, and them average X-bedroom X.Xx the Skamania. We

there But we're for of the faster I and is doing. other pretty revenue So, we're than lot think our a of our significantly the second confident, things year think, I in growing range are RevPAR. half

about and big that consumer that we corporate beverage more the demand big but as shift much up part room. And segment XX% also, generate of it's to group generates of more XX% rates corporate or cases, is, food component a talked the they're XX,XXX some banquet just our declining the and do there. call, the also has as a are Shaun, too they'll In maybe year-over-year. group about room sensitive, being business in our while almost in with nights That's catering lot during the leisure a is they not and corporate group. That

what very a using customer more a when overall, does -- that that's some that that may higher. we're the losing where rate, some basis, customers we but profit of that the at the on And offset lower OTAs, -- if So, is corporate of price-sensitive and TRevPAR be attractive. is maybe is group that's look producing

which we But think helping, is a the shift it's also encouraging. overall, it's So segmentation it's that having long-term, change.

from question Michael Baird. of coming next is The Bellisario

you're at channels Can much existing how Thanks these is getting quantify term? for to end. are these or the net on for maybe are you're way rates still any through customers that sneaking back here in different short time. booking Jon, me there getting? customers Are lower Are these pretty go new to you to channels? one the And rooms the just tell? more bookings want these occurring you all

mean just do by Hey you net Mike, what clarification, for rate?

getting broadly, more what what the getting rate mean, you're much free. you're night I What you bookings? talked presumably you price about the you're thought these lower rate maybe net lowering offering though, how or you last were versus sensitivity, fourth year getting is a you on -- is were particular or that

to Thanksgiving the the Black The around promotional OTA the the Friday year channel across it And throughout of a range, would through all as a in all we of where promotions the biggest upon a that typical to Black are additional do XX% or it's what generated does an basis, probably is place. to on extent Mike. close sale. But the obviously, XX% net sorts through right we the pretty that's over do these kind channel, cost direct drive Well, is sales Depending promotion what same that during and promotions to business. we probably year. off after country is, offering everybody the may Friday, do anywhere one from

what's a these ADR on customers. an there's, basis, lower, obviously, that's So, basis net are it, on new and impacting our average part or doing it's of what's

most we doesn't who new part, the a list take they to advantage send It of offers. are customers. offers customers who For on those are mailing mean don't existing

I we additional them. already. from booking guess, a had Sometimes, it's might sometimes have demand it's

we the data the at have on of basis. an may that know and but end quite we an anything the on never we have portfolio basis, don't So overall day anecdotal

large didn't kind it, I -- think, probably of basis, get we'd rates doing a number in given, pre-pandemic as that attractive achieve, more we sense, when we property. well -- that part of it spend But the going from part properties So, big like the couldn't those makes not customers as again, grow in other is on we through if these a to we used need what channels we're segments, from it high our dropped because that again, segments of a we a continuing large we're for participate years. And service on now. they're doing were using segments

very it's So, I profitable think business.

as you channels more or using are less And Understood. XXXX, to same? the these then compared

of not mentioned, we're even that say has a before, using with not we're same still them of using introduction an I Costco now, new. I'd the one exception level channels although has of, probably Capital Chase there One, were consortia we as it. the well, at that's been couple

through we'd certainly attractive, than getting better we OTA get -- otherwise but consortia frankly, through and probably be net an So, is channels than what anything the channel are higher the very

Thank questions today Mr. you. Bortz closing back have all comments. answers. to for I That is the we time over it and will for turn

for Have giving participating We again. a an again great thanks in Hey, summer. forward you XX to update days. look

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

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