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: Dori Kesten - Wells Fargo Securities, LLC - Analyst
: Thanks. Good morning, guys. Can you dig into your expectations for the outsized out-of-room spend growth in '25 and just what your managers
are seeing in discussions with groups on their anticipated spend and then just differences that you'd expect generally for transient spend at your
urban versus resort properties.
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FEBRUARY 27, 2025 / 2:00PM, PEB.N - Q4 2024 Pebblebrook Hotel Trust Earnings Call
Question: Duane Pfennigwerth - Evercore ISI - Analyst
: Hey. Good morning. Thanks. I wondered if we could zoom in a little bit on the DC market. Obviously, you have some assets there, but you're also
in the market and have been in the market for a long time.
We've just been getting more questions on government exposure and of course DC is only a part of that exposure potentially. Can you speak to
just generally demand drivers around a change of administration and what the overall vibe is right now?
Question: Jay Kornreich - Wedbush Securities - Analyst
: Hi. Good morning. Thanks. You mentioned in your comments that you anticipate no further material leisure rate deceleration in 2025. So I was just
wondering if you can expand on that comment. So what do you see that gives you more confidence on the leisure side? And is there any possibility
for leisure rate to even be up by the end of the year?
Question: Jay Kornreich - Wedbush Securities - Analyst
: Okay. I appreciate that. And then just one other, looking for Los Angeles and the impact that's happened in the portfolio which you outlined in
guidance, do you feel like that properly de-risked or is there any further impact that that could have? And on the vice versa side of that, as the year
progresses and maybe transient demand comes back in with some relief customers, is there opportunities for upside in that market?
Question: Jay Kornreich - Wedbush Securities - Analyst
: Yeah. Very helpful. Thanks for all the cover.
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FEBRUARY 27, 2025 / 2:00PM, PEB.N - Q4 2024 Pebblebrook Hotel Trust Earnings Call
Question: Michael Bellisario - Robert W. Baird & Co., Inc. - Analyst
: Good morning, everyone. Jon, just first question for you, just on some of the expense cuts and efficiencies, is there maybe a dollar amount for '24
that you think you achieved? And then could you provide us with some more on property examples of things you've done or planned to do in '25?
Question: Michael Bellisario - Robert W. Baird & Co., Inc. - Analyst
: Understood. That's helpful. And then just follow up from me on an unrelated topic, but on the disposition front, with the latest and greatest there
in terms of your efforts to transact and maybe get some things across the finish line in 2025. And I asked that in the context of your short-term
incentives for '25 that dispositions are at the top of the list. Thanks.
Question: Gregory Miller - Truist Securities, Inc. - Analyst
: Thank you. Good morning. I'd like to ask about San Francisco. Certainly, there have been many developments in recent months, including changes
to local leadership. Could you provide your latest views on the market beyond convention citywide?
Perhaps if you can speak to what you're seeing in the streetscape changes implemented by the new mayor or the Board of supervisors, tourism
promotional efforts or other factors that are top of mind for you. Thanks.
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FEBRUARY 27, 2025 / 2:00PM, PEB.N - Q4 2024 Pebblebrook Hotel Trust Earnings Call
Question: Ari Klein - BMO Capital Markets - Analyst
: Thanks. Good morning. Maybe just going back to the LA market, if you -- even before the wildfires, 2024 was very challenging year, and I think
EBITDA in '24, 55% below the 2016 peak. I guess I'm just curious what's your long-term view on that market and how comfortable are you with
your overall exposure there. Thanks.
Question: Ari Klein - BMO Capital Markets - Analyst
: When you compare maybe San Francisco and LA, which of those two markets do you feel better about? I guess, over the medium term because it
sounds like there's a lot of, maybe more near-term optimism on San Francisco om that recovery.
Question: Floris van Dijkum - Compass Point Research & Trading, LLC - Analyst
: Morning, guys. My question to you, obviously, you had another gut punch here in LA with the fires. You put out a bridge that basically tells you
that you think you're going to get to $442 million of EBITDA. And if I look at your 2019, which is by the way that bridge implies 19% growth. If I look
at your 2019 EBITDA, you had $436 million of hotel EBITDA. You're still [$65 million].
What's the conditions that you need obviously outside of the one-off events like the hurricanes in Florida and the fire in LA that you think you
would need to get to those levels and how quickly can you get there? And is there a scenario where we can get beyond that EBITDA that you've
laid out in your bridge?
Question: Chris Darling - Green Street - Analyst
: Hey. Thanks. Good morning. Jon, to the extent you're successful in closing any dispositions this year, how are you thinking about use of proceeds,
especially with the convertible note maturity date approaching in the next couple of years?
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And then secondly, is there a scenario here where maybe you look to sell assets in some of your stronger urban markets, potentially even some of
your resort hotels? I'd imagine the liquidity profile there is much superior relative to some of your West Coast markets.
Question: Chris Darling - Green Street - Analyst
: All very helpful thoughts. I guess just to follow up on the last part of my admittedly multi-part question, but any thoughts on potentially selling in
some of those markets where maybe the liquidity profile is a little bit more conducive to effectuating some sales?
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