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What are Pebblebrook Hotel Trust’s Best Performing Markets?

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In addition to the moderating business and leisure hotel demand that Pebblebrook Hotel Trust experienced during the quarter, Raymond Martz, EVP, CFO, treasury and secretary, said on the firm’s Q3 earnings call that the firm’s South Florida hotels and resorts were impacted by Hurricane Dorian in early September, which we estimate negatively impacted same-property RevPAR growth by 30 basis points. “Overall our 2.2% RevPAR decline during the third quarter was a result of a 0.6% decline in ADR and a 1.6% decline in occupancy.”

Martz also noted that the firm’s portfolio on a relative basis outperformed its comparable combined STR market tracks which experienced “a 2.6% RevPAR decline 40 basis points below our same-property third quarter RevPAR.”

He added that the REIT “also had approximately 60 basis points of negative impact to RevPAR at five of our hotels that have recently transitioned to new management companies. However this was largely as we had forecasted going into the quarter. Interestingly 17 of the 20 market tracks in our portfolio experienced negative RevPAR for the quarter with Philadelphia Washington D.C., And Naples Florida has been only the three market tracks that generated positive RevPAR in the quarter.”

As for Pebblebrook, the firm’s best-performing markets in the third quarter were Boston San Diego Philadelphia and Naples Florida. “In addition our hotels in 15 of our 20 markets outperformed their respective STAR market tracks.”