Hotel Earnings Call Highlights: Demand, Pricing, and Government Impact Create Contradictions

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Strong Q1 Performance Despite Economic Uncertainty:
- Pebblebrook Hotel Trust reported same-property hotel EBITDA of $62.3 million, surpassing the midpoint of their outlook by $4.3 million.
- Despite same-property hotel RevPAR being at the low end of their outlook, the performance was driven by significant improvements in portfolio-wide operating efficiencies, leading to elevated ancillary revenue growth at resorts.

Government and International Travel Impact:
- The company saw a 1% to 2% RevPAR drag due to decreased government and government-related group and transient travel, which make up 3% to 5% of the portfolio's demand.
- This impact was exacerbated by a 10% decline in inbound international travel compared to the previous year, amid negative reactions to US government policies.

Los Angeles Wildfires Impact:
- The Los Angeles wildfires resulted in a $6.7 million EBITDA headwind, with RevPAR for West Los Angeles properties declining 23.4%.
- The fires and their aftermath significantly reduced demand from both leisure and business travelers, affecting nine of Pebblebrook's West Los Angeles properties.

Portfolio and Market Recovery:
- Same-property total revenues rose 1%, with resorts seeing a 7.1% increase, excluding Los Angeles, which saw a 4.8% rise.
- Recovery in markets like Washington D.C., San Francisco, Portland, and Key West was driven by demand from business groups and leisure travelers, supported by comprehensive property renovations.