Pebblebrook Hotel Trust has become the latest hotel company to withdraw its 2020 and Q1 2020 outlook.
The Reit said that it had taken the decision due to the large number of recent corporate group cancellations and corporate travel policy restrictions related to concerns about COVID-19, which had led to “material declines” in net bookings year over year.
“We have seen a considerable rise in corporate group- and convention-related cancellations due to concerns surrounding COVID-19, and therefore, we are unlikely to achieve our first quarter and full-year 2020 outlook,” said Jon E. Bortz, chairman, president & CEO.
“These cancellations, which have dramatically escalated in just the last 10 days, are largely for business previously on the books for March, April and May of 2020. We’ve also experienced significant cancellations and material declines in business transient demand, while leisure bookings have also been impacted, but to a lesser extent. This remains a rapidly evolving situation.
“As a result of the shift in demand, we are thoughtfully modifying our operations and implementing cost reduction plans to mitigate the impact on revenue that we are anticipating and experiencing today. In conjunction with our property operating teams, we are utilising our unique set of best practices, just as we have successfully done during previous downturns and similar unexpected events. The impact of COVID-19 continues to quickly develop, and, thus, we do not expect to issue new guidance until we have more clarity on travel demand and more predictable overall operating fundamentals and trends.”