1315_Nareit Testimonial Reitweek Martz 20240627 v2

Raymond Martz. co-president and CFO of Pebblebrook Hotel Trust (NYSE: PEB), sat down for a video interview at Nareit's REITweek: 2024 Investor Conference, held in New York June 3-6.

Martz highlighted that Pebblebrook is navigating a cautious economic landscape, influenced significantly by the Federal Reserve's stance on interest rates. This environment has paused their asset selling strategy aimed at reducing debt and buying back shares at discounted NAV rates.

Despite these challenges, Martz expressed optimism regarding the demand for both business and leisure travel, noting a resilient recovery in key markets such as San Francisco and Washington, D.C. He acknowledged that while leisure travelers have become more price-sensitive, overall demand remains strong. Pebblebrook's strategy for the short to medium term revolves around continuing to sell assets at NAV, focusing on debt reduction, and intensifying share buybacks rather than pursuing new acquisitions.

Martz also highlighted several completed redevelopment projects totaling $300 million, aimed at enhancing property values and generating double-digit returns. Projects like Newport Harbor and Margaritaville in San Diego are expected to contribute significantly to shareholder value as they ramp up operations. Looking ahead, Martz emphasized that Pebblebrook remains enthusiastic about future growth opportunities, contingent on economic stability.