Pebblebrook Hotel Trust reported first-quarter funds from operations, or FFO, of $22.2 million, up from $15.5 million in the same period last year. Revenues also increased to $125.71 million from $104.91 million last year, beating analyst estimates.
Net loss to common shareholders for the quarter narrowed to $2.0 million from $4.9 million in the same period last year.
Same-property RevPAR in the first quarter of 2014 increased 8.5 percent over the same period of 2013 to $168.98.
Looking ahead to the second quarter, the company has forecast adjusted FFO in a range of $0.49 to $0.53 per share.
“We’re very pleased with our portfolio’s strong operating performance in the first quarter, as revenue growth and profitability margin results exceeded both our outlook and the performance of the overall U.S. hotel industry,” said Jon E. Bortz, chairman, president and CEO of Pebblebrook Hotel Trust. “Our hotels continued to benefit from strong underlying hotel industry fundamentals, despite weather related travel disruptions throughout the east coast in the first quarter. Industry demand significantly outpaced supply due to healthy increases in business transient, leisure and international inbound travel, as well as the first signs of meaningful improvement in group demand, all of which benefited our hotels, particularly those on the west coast. Significant revenue growth throughout our portfolio was widespread, though our hotels that were renovated in the last few years led the way, including Hotel Zetta, Sir Francis Drake, Sofitel Philadelphia, and Monaco Seattle – all properties where we’ve been successful at both improving and creating a unique customer experience. Our 2014 outlook remains very positive and we expect these favorable growth trends to continue throughout the year.”
During the first quarter, the REIT invested $8.1 million in capital improvements throughout its portfolio, which includes the company’s 49-percent interest in its six-hotel joint venture with Denihan Hospitality Group. The company’s capital improvements included $1.5 million at Hotel Palomar San Francisco, $1.0 million at Hotel Vintage Seattle, $0.7 million at Vintage Plaza Portland and $0.5 million at Le Méridien Delfina Santa Monica.
As of April 2014, the company has substantially completed a comprehensive renovation and repositioning of the 125-room Hotel Vintage Park Seattle, which has been renamed Hotel Vintage Seattle. The company has also largely completed the restaurant and lobby renovations at the 196-room Hotel Palomar San Francisco and plans to soon commence a rooms and corridor refresh as well as the addition of four guestrooms at the property.
During the fourth quarter of 2014, the company plans to commence a comprehensive renovation and repositioning at the 355-room Radisson Hotel Fisherman’s Wharf, a guestrooms and public areas renovation of the 258-room W Los Angeles-Westwood, including the potential of adding 36 guestrooms, and the renovation of the lobby and atrium at the 337-room Embassy Suites San Diego Bay Downtown, including the addition of four guest rooms.