Shares of Pebblebrook Hotel Trust have taken a hit in morning trading following the release of a lukewarm outlook for the final quarter of the year. The real-estate investment trust has set its sights on adjusted funds from operations between 9 to 14 cents per share, falling short of analysts’ expectations of 16 cents per share, according to FactSet.
Strategic Shift and Market Conditions
Having been in the process of selling off its urban properties to pivot towards resorts, Pebblebrook Hotel Trust is feeling the impact of changing market dynamics. Chief Executive Jon Bortz noted on a recent conference call discussing third-quarter results that “revenge travel” pertaining to outbound international and cruising activities has overshadowed the growth in demand for business travel and inbound international travelers.
Despite facing setbacks from Tropical Storm Hilary and Hurricane Idalia, Pebblebrook Hotel Trust managed to exceed analysts’ expectations in terms of third-quarter revenue and adjusted funds from operations, as reported by FactSet.
While the market reaction has been unfavorable so far, Pebblebrook Hotel Trust continues to navigate through challenging conditions and adjust its strategy accordingly. The upcoming months will be crucial in determining the path forward for the real-estate investment trust.