Pebblebrook Hotel Trust Q3 FY2024 earnings call

• Third quarter hotel operating results were in line with outlook despite two named storms; RevPAR growth driven by occupancy increases at urban and resort properties. - Ongoing recovery of business group and transient demand along with strong resort and urban weekend leisure travel fueled occupancy gain. - Same-property hotel EBITDA reached $110.8 million comfortably in the middle of outlook range. - Rebranded Delfina Santa Monica Hotel as Hyatt Centric, property refresh underway with brand transition temporarily disrupting performance. - Actively worked on strengthening financial position, completed bond issuance and extended loan maturities. - Discontinued monthly operating update signaling confidence in industry and portfolio stability.

In the third quarter, same-property RevPAR increased by 2.2%, landing in the middle of the outlook range, and would have exceeded 2.4% if not for hurricane impact. Total RevPAR rose by 2.7% propelled by increased occupancy and strong out-of-room spending. Same-property hotel EBITDA reached $110.8 million. Urban properties: strongest markets were Chicago, San Diego and Boston; urban occupancy increased by 3.7% year-over-year in Q3, urban weekend occupancy rose by 3.9%, urban weekday occupancy grew by 3.8% year-over-year. Resorts segment: same-property occupancy declined by 5.9% year-over-year, but resort weekday occupancy improved by 6.7% and resort weekday occupancy grew by 5.2%; group room nights grew by 9.1% year-over-year with ADR increasing 1.9%, driving a total group revenue increase of 11.2%, group revenue accounted for about 24% of total room revenue in the quarter.

• Estimate combined impact of Hurricane Helene and Milton will reduce Q4 same-property RevPAR by approximately 100 basis points, resulting in a $2.5 million decrease in same-property hotel EBITDA; including LaPlaya, total negative impact in Q4 from the two hurricanes is about $10 million. - Hyatt Centric brand transition will reduce Q4 RevPAR by approximately 100 basis points, leading to a $1.4 million reduction in same-property hotel EBITDA. - Expect 2025 demand to better align with GDP growth, occupancy to improve, group and leisure demand to continue recovering.

• Impact of named storms on several properties, including property damage and impact on bookings. - Headwinds in certain urban markets like San Francisco, Los Angeles, and Portland affecting performance.

Q: Buyback of stock and progress with asset sales, and CapEx spending in 2025?

A: Jon Bortz says buybacks continue as primary source of proceeds from free cash flow; no next wave of major projects, CapEx in 2025 ex hurricane dollars in $65 million to $75 million range; LaPlaya's restoration progress with permits awaited to get back to good shape.