PEB - Pebblebrook Hotel Trust (PEB) Q4 2023 Earnings Call Transcript
2024-02-22 16:57:15 ET
Pebblebrook Hotel Trust (PEB)
Q4 2023 Earnings Conference Call
February 22, 2024, 11:00 AM ET
Company Participants
Raymond Martz - Co-President & CFO
Jon Bortz - Chairman & CEO
Tom Fisher - Co-President & Chief Investment Officer
Conference Call Participants
Duane Pfennigwerth - Evercore ISI
Smedes Rose - Citi
Michael Bellisario - Baird
Bill Crow - Raymond James
Dori Kesten - Wells Fargo
Jay Kornreich - Wedbush Securities
Dany Asad - Bank of America Merrill Lynch
Gregory Miller - Truist Securities
Floris van Dijkum - Compass Point
Chris Darling - Green Street
Presentation
Operator
Greetings, and welcome to the Pebblebrook Hotel Trust Fourth Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Raymond Martz, Co-President and Chief Financial Officer. Thank you. Please go ahead.
Raymond Martz
Thank you, Donna, and good morning, everyone. Welcome to our fourth quarter 2023 earnings call and webcast. Joining me today is Jon Bortz, our Chairman and Chief Executive Officer; and Tom Fisher, our Co-President and Chief Investment Officer.
But before we start, a reminder that today's comments are effective only February 22, 2024. Our comments may include forward-looking statements under federal securities laws. Actual results could differ materially from our comments. Please refer to our latest SEC filings for a detailed discussion of potential risk factors and our website for reconciliations of the non-GAAP financial measures referred to during our call.
In 2023, our portfolio continued to recover from the negative impact of the pandemic. This is a testament to the dedication, innovation and resilience of our hotel teams and operating partners. Their exceptional contributions were instrumental in propelling our portfolio's growth and recovery in 2023, and we thank them for their support and hard work.
We are delighted to report favorable operating and financial results for 2023. Our adjusted EBITDA reached $356.4 million, exceeding the top end of our outlook by $6.5 million in the fourth quarter as adjusted EBITDA increased to $63.3 million. Our adjusted funds from operations per share also surpassed our outlook, ending the year at $1.60 per share, with the fourth quarter at $0.21, beating the top end of our Q4 outlook by $0.07 per share.
This better-than-expected performance in the fourth quarter was fueled by our urban hotels, which continued to experience a healthy recovery in corporate transient and group demand, including from improving convention calendars and recovering leisure travel in the cities, driven by concerts and sporting events. San Francisco, Washington, D.C., Boston and Los Angeles led our urban strength.
Focusing on our 2023 hotel operating results, occupancy rates increased 4.6%, occupancy points to 67.7%. However, this level is still well below our pre-pandemic occupancy of 81% in 2019 and our peak occupancy of 85% in 2016. This gap highlights our portfolio's significant remaining growth potential, particularly at our urban properties, which are on a promising recovery path....
Pebblebrook Hotel Trust (PEB) Q4 2023 Earnings Call Transcript