The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: William Andrew Crow - Raymond James & Associates, Inc., Research Division - Analyst
: Jon, I think in the hindsight, it's pretty easy to see that e-commerce spiked during the pandemic. And is now in the process of normalizing and kind
of a painful normalization, I guess. Is lodging going through the same thing? Are we just having a postpandemic spike that is going to normalize
whether it's 2023 or 2024?
Question: William Andrew Crow - Raymond James & Associates, Inc., Research Division - Analyst
: Yes, spending on lodging, in particular, on the rate front, but are we just getting more than our fair share as a part of the economy and we're going
to get that back to more normalized travel spending as we -- as a part of the overall economy going forward?
Question: William Andrew Crow - Raymond James & Associates, Inc., Research Division - Analyst
: Yes. Okay. And if I could just follow up with a question for Ray. I think, Ray, in your prepared remarks, you talked about responsible guidance for
the third quarter, I guess, given the macro clouds up there. I think that's what you said. I'm just curious, you've got July pretty much in the books.
August seems like it should be just leisure-driven pretty good month. So is it really September, which is the biggest contributor, I believe, to the
third quarter that causes you consternation? Or how much conservatism is there in your 3Q outlook?
Question: Neil Lawrence Malkin - Capital One Securities, Inc., Research Division - Analyst
: My question is on the capital allocation decisions, specifically the urban hotels you mentioned you were selling. So obviously, you've been cycling
significantly into resorts exclusively and then selling urban hotels. You talked about 3 additional hotels coming up, look like the Spero. I saw some
news about that one being one of them.
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JULY 27, 2022 / 1:30PM, PEB.N - Q2 2022 Pebblebrook Hotel Trust Earnings Call
I was wondering if you can give any color on the sorts of hotels or markets that the other 2 are going to be in, and you mentioned potentially
another set later in the year. Can you just maybe talk about that? And then really, what does that say, Jon, about your view on urban either recovery
or a longer term operating dynamic versus sort of domestic leisure just based on where you've been putting your money?
Question: Neil Lawrence Malkin - Capital One Securities, Inc., Research Division - Analyst
: Okay. So it's less about a call on a specific market or the drivers within those markets or the fundamentals that would support travel pre- versus
post-COVID and more of the -- that mix is being at the top of the list of rationale for the decisions?
Question: Neil Lawrence Malkin - Capital One Securities, Inc., Research Division - Analyst
: Is that fair to say? Okay.
Question: Aryeh Klein - BMO Capital Markets Equity Research - Analyst
: Maybe just following up on that last question. If you can talk a little bit about what's happening with pricing in the transaction market? And if you
could tie that into the assumed cap rate in your NAV, which remained unchanged overall even if there were some markets that changed a little bit
here or there.
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JULY 27, 2022 / 1:30PM, PEB.N - Q2 2022 Pebblebrook Hotel Trust Earnings Call
Question: Aryeh Klein - BMO Capital Markets Equity Research - Analyst
: Okay. And then just real estate taxes, it was higher than we had expected. What kind of outlook there moving forward?
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