Pebblebrook Hotel Trust’s estimated July operating results show revenues and earnings exceeding 2019 levels for the first time.
In an update on recent operating trends, the hotel real estate investment trust shared that July estimated revenue per available room exceeded July 2019’s performance by 3% while total revenues and earnings before interest, taxes, depreciation and amortization topped July 2019 by 4% and 2%, respectively.
Pebblebrook’s portfolio average daily rate held a 23% premium over same-hotel July 2019, the portfolio’s highest ADR premium so far and the highest ADR ever for any month in the company’s history.
The update reports that business travel demand for both group and transient guests grew in July. Urban hotel occupancies reached 79% for the last two non-holiday weeks in the month while rates held a 7% premium over July 2019. Occupancy levels “remained healthy” in the first two weeks of August as well.
Leisure demand continues to be strong, supporting the hotels’ ADR premiums. For the weeks ending July 24 through Aug. 14, ADR at Pebblebrook’s resorts were more than 50% above the comparable weeks in 2019.
Pebblebrook closed on the sale of the Sofitel Philadelphia at Rittenhouse Square Aug. 2 for $80 million. The company used the net proceeds of the sale to reduce its outstanding debt borrowing associated with recent hotel acquisitions.
It also has two additional hotels under contract for sale for approximately $103.9 million in gross proceeds. The sales are expected to close in the third quarter.