Pebblebrook Hotel (PEB) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Raymond Mars, Co-President and Chief Financial Officer. Thank you. You may begin. Thank you, Donna. And good morning, everyone. Welcome to our second quarter 2025 earnings call. Joining me today is John Boards, our Chairman and Chief Executive Officer, and Tom Fisher, our Co-President and Chief Investment Officer. But before we start, I'd like to remind everyone that our remarks today are effective only as of today, July 30th, 2025. Our comments may include forward-looking statements that are subject to various risks and uncertainties. Please refer to our STC filings for a detailed discussion of these risk factors and visit our website for reconciliations of any non-GAAP financial measures mentioned today. Now, let's jump into the quarter. We're pleased to report that our second quarter performance exceeded our outlook. Our results are driven by healthy occupancy gains, continued resilient -of-room revenue growth, and another strong quarter of cost discipline and efficiency improvements. As a result, we exceeded the midpoint of our same property, Hotel Ibiza Outlook, and came in above the high end of our ranges for both Adjusted Ibiza and Adjusted FFO. Same property, Hotel Ibiza, totaled $115.8 million for the quarter, $1.8 million ahead of our midpoint. As anticipated, Los Angeles remained a modest drag on performance with a $2.2 million Ibiza headwind, which was about $700,000 more than we anticipated. Occurringly, the rest of the portfolio more than offset the softness, reinforcing the strength and diversification of our portfolio. To better understand the underlying performance of the portfolio, if we adjust for the one-time real estate tax credits in last year's resul...