Pebblebrook reports. Pebblebrook Hotel Trust 2Q25 results were ahead of Street
expectations with RevPAR growth of +0.6% and better performance in San
Francisco, Portland, San Diego and Chicago offsetting softness in Los Angeles
and Washington, D.C. RevPAR growth was -8.2% in Los Angeles, which held back
portfolio-wide performance by ~160 bps and was greater than the ~50 bps
expectation for 2Q25. Management noted that the recovery in the market has been
negatively impacted by immigration enforcement activities deterring demand.
Pebblebrook’s 3Q25 RevPAR outlook is -4.0% to -1.0% and Adjusted EBITDA
guidance of $93.5-$100.5 million. Pebblebrook tightened its RevPAR outlook 50
bps to -1.0% to +1.0%, which implies +2% growth in 4Q25 at the midpoints. “Our
hotel teams executed exceptionally well in the second quarter, delivering a
3.1% increase in occupancy across the portfolio, excluding our Los Angeles
properties,” said Pebblebrook CEO Jon Bortz. “We are very encouraged by the
ongoing recoveries in San Francisco, Portland, and Chicago, reflecting the
continued resilience of these markets, which more than offset softness in Los
Angeles and Washington, D.C. We are particularly pleased by the continued
success our teams have had identifying new efficiencies to operate more productively,
as reflected in the modest 1.7% year-over-year increase in same-property
expenses before fixed costs.”
Booking beats. Booking’s 2Q25 results were well ahead of Street
expectations on better room night and revenue growth. Guidance for 3Q25 was
below expectations with 3.5% to 5.5% room nights growth likely based on macro
conservatism. Gross bookings were +12.8%; room nights were +7.7%. Revenues were
+16.0% and gross margins were 14.5%.
Big trade in Toronto. Ritz-Carlton Toronto trades. Pacific Reach and Dilawri Group of Companies have acquired The Ritz-Carlton, Toronto from Cadillac Fairview. The price has not been disclosed. As equal partners, Pacific Reach will asset manage and work with Dilawri to elevate the property. Marriott International will continue to manage the hotel. Planned enhancements to the property will include updates to the spa and wellness amenities, common areas, and conferencing spaces.
Refi on the Riverwalk. Sonnenblick-Eichner Co. has arranged $22.6
million of first mortgage leasehold financing on behalf of Valencia Hotel Group
to refinance a maturing 10-year loan at its 213-room Hotel Valencia Riverwalk
in downtown San Antonio, Texas. “We had tremendous lender interest in this
financing opportunity and ultimately closed a five-year fixed-rate loan which
was sized to a low debt yield for a hotel encumbered by a ground lease,” said
Sonnenblick-Eichner Principal David Sonnenblick.
Hampton sells in Nashville. Franklin Hospitality Group has purchased the 127-key Hampton
Inn & Suites Nashville/Franklin (Cool Springs) in Tennessee for an
undisclosed amount from an institutional seller. Hunter Hotel Advisors facilitated
the transaction on behalf of an institutional seller.
Canada’s pipeline. There were 333 projects/44,764 rooms in Canada’s pipeline at
the close of 2Q25, representing a 3% increase in projects and an 11% increase
in rooms year-over-year (YOY), according to Lodging Econometrics. Hotels under
construction stood at 68 projects/9,038 rooms, each respectively accounting for
20% of the total pipeline. Projects scheduled to start construction in the next
12 months stood at 100 projects/12,955 rooms for a 25% YOY increase by projects
and a 40% YOY increase by rooms. Accounting for 50% of the projects in Canada’s
total pipeline at Q2, projects in early planning stand at 165 projects for a 2%
YOY increase and a record-high 22,771 rooms for an 11% YOY increase by rooms.
Amex, CWT to merge. American Express Global Business Travel will acquire
competitor CWT in a transaction worth $540 million—a reduced valuation from the
original $570 million deal, after the U.S. Department of Justice on Tuesday
dropped its antitrust suit against the mega travel management companies. The
companies expect the deal to generate approximately $155 million in identified
net synergies across its operations in more than 140 countries. The purchase is
made up of approximately 50 million shares to be issued at a fixed price of
$7.50 per share, with the remaining consideration funded with cash on hand. CWT
shareholders will own approximately 10% of the company.
Dusit to France. Dusit International, Bangkok, has signed a strategic
partnership agreement with Sydel, a French real estate investment company, to
establish Dusit France. The joint venture will focus on identifying
opportunities for Dusit Hotels and Resorts’ nine brands. Dusit’s portfolio
currently spans 294 properties across 18 countries, including 55 operating
under Dusit Hotels and Resorts and 239 luxury villas under Elite Havens. In
Europe, the company operates the upper-upscale Dusit Suites Athens in Greece,
located in the vibrant coastal district of Glyfada on the Athenian Riviera.
Four Seasons residences in UAE. Four Seasons Hotels and Resorts and Abu Dhabi-based asset
manager Alain have announced a new standalone beachfront residential offering
in the UAE, Four Seasons Private Residences Abu Dhabi at Saadiyat Beach,
set to open in 2029. The project will comprise 56 luxury villas, including
limited beach mansions. and 60 suites, including penthouse and royal
residences.
FIBRA adds. Mexican REIT FIBRA Inn will assume the operation of properties
in Puebla and Nuevo Leon, which it said will allow it to accelerate
decision-making and create financial efficiencies. FIBRA Inn will assume
control of the Holiday Inn Puebla La Noria and the Holiday Inn Monterrey Valle
starting on August1 and September 1, respectively.
