Pebblebrook Hotel Trust warns of RevPAR miss due to less 'leisure splurge' and weekend demand

Shares of Pebblebrook Hotel Trust (PEB) fell 0.5% in premarket trading Friday, after the real estate investment trust (REIT) focused on hotel properties said it expects revenue per available room (RevPAR) to fall slightly below expectations. The REIT said weekend leisure demand has weakened over the last several weeks, due in part to cooler weather in Southern California and the Pacific Northwest, as well as less "leisure splurge" for suites and premium rooms. The company said the Hollywood writers' strike was also hurting business demand in Los Angeles. Meanwhile, the company said business travel continues to improve. The company said same-property total revenue in May fell 9% from a year ago, due to declines in average daily rates. Pebblebrook's stock has slipped 3.5% year to date through Thursday, while the Real Estate Select Sector SPDR exchange-traded fund (XLRE) has eased 1.8% and the S&P 500 has climbed 14.1%.

-Tomi Kilgore

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06-23-23 0755ET

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