Pebblebrook Hotel Trust reported results for the first quarter ended March 31, 2015.
Pebblebrook's same-property revenue per available room (RevPAR) grew 3.6 percent over 2014, reaching $174.71. The company's same-property EBITDA increased 10.9 percent, growing to $46.2, while adjusted EBITDA grew 31.5 percent to $38.8. Adjusted FFO was $24.4 in Q1 2015, up from $16.9 in the same period of 2014.
“First quarter operating results for our portfolio exceeded our outlook due to better than forecasted RevPAR growth and terrific success limiting expense increases,” said Jon E. Bortz, chairman, president and CEO of Pebblebrook Hotel Trust. “Hotel industry fundamentals remain strong as demand continues to outpace tepid new supply and rates grow at a healthy pace. We increased our 2015 outlook, which remains very positive as we expect to see favorable growth trends continue throughout the year, both for our portfolio and the U.S. lodging industry.”
The company's outlook for 2015 has improved due to its first quarter results, expecting net income (loss) to common shareholders reaching a low of $68.1 and a high of $73.6. Pebblebrook estimates same-property RevPAR to increase by as little as 6.5 percent ($211) and as much as 7.5 percent ($213).
“We had a very good first quarter, especially when factoring in weather related travel disruptions that impacted the East Coast as well as the negative impact associated with several significant capital reinvestment projects planned for the quarter,” Bortz said. “Same-Property RevPAR increased 3.6 percent, below the industry’s 7.9 percent growth, but in excess of our outlook, which drove Same-Property EBITDA growth of 10.9 percent over the prior year. Our hotels, as provided in our previous outlook for the quarter, lost 300 basis points of RevPAR growth due to the renovation projects underway in the quarter, as well as another 60 basis points from disruptive weather in the east. With the completion of numerous past, recent, ongoing and upcoming renovations and repositionings, we expect to see significant additional upside from our strategy of acquiring high-quality unique hotels located in cities with high barriers-to-entry and access to multiple demand generators, and then renovating and repositioning them for significant multi-year growth that should exceed the underlying growth in their respective markets.”