Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust (NYSE: PEB), sat down for a video interview during Nareit’s REITworld: 2025 Annual Conference in Dallas, Dec. 8–11.
Bortz highlighted San Francisco as a major driver of recent performance, pointing to rapid recovery fueled by improved local governance, stronger public safety and cleanliness, returning office workers, a rebounding convention calendar, and renewed leisure demand. “San Francisco is recovering rapidly… and we think it’ll continue for the rest of the decade,” he said.
A key catalyst for the city is AI, which he described as firmly headquartered in San Francisco and attracting significant new leasing activity.
On capital allocation, Bortz said transaction activity is gradually improving after a volatile year shaped by policy-driven uncertainty. Pebblebrook is selectively selling urban assets—despite challenging markets like Chicago and Los Angeles—and recycling capital into share buybacks and debt reduction, given the stock’s steep discount to NAV.
Strategically, the company sees near-term upside in urban recoveries but plans to continue shifting the portfolio toward resort markets over the long term, where risk-adjusted returns are more attractive.
Looking to 2026, Bortz is bullish on lodging fundamentals, citing a uniquely strong event calendar, favorable holiday timing, resilient economic growth, and minimal new hotel supply. “With very little new supply for the next four to five years in the hotel industry, we think we have some great times coming—we just need a little stability.”