BETHESDA, MD—August was a bad month for Pebblebrook Hotel Trust and the REIT has downgraded some aspects of its Q3 operating performance.
“In August, we experienced weaker than anticipated demand in a number of our markets, including San Francisco and Los Angeles, which also appears to be continuing into September,” said CEO Jon Bortz in a prepared statement. He attributed the weakness to Labor Day and a soft international travel market.
“As a result, we expect to be slightly above or below the low end of our previously provided third quarter outlook for same-property RevPAR, same-property EBITDA and same-property EBITDA margin,” he said.
Bortz said the weaker than anticipated demand is believed to be transitory.
“We continue to be encouraged by favorable fundamentals for the U.S. hotel industry and Pebblebrook in 2015, next year and beyond.”
The REIT provided the update to its operating performance ahead of its participation in the Bank of America Merrill Lynch Global Real Estate Conference on Wednesday and its 2015 Institutional Investor and Security Analyst Conference in San Francisco on September 29, 2015.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
