Pebblebrook Hotel Trust (NYSE:PEB) Q1 2024 Earnings Call Transcript

Tom Fisher: Hey, Anthony. Tom Fisher, good morning. I think at the — to Jon’s earlier point on the in the previous answer to the question, I think the uncertainty, and I think everybody continues to wait for what the Fed is going to do. I would tell you, as we started the year, the investor sentiment was pretty strong. I think there was kind of a spring to action. I think that, that’s somewhat been delayed as people wait for the Fed to pivot. I think that there is debt availability, but the debt is expensive and that’s impacting pricing. So I still think at this point, there’s some pricing discovery out there, but I think that in terms of actual volume of transactions, I think that’s going to continue to be somewhat stalled or delayed until we see some real movement in terms of the base rates.

Anthony Powell : And there’s not a lot on the market today.

Tom Fisher: I mean, what I would say to you is kind of doing my survey of broker interviews, so to speak, or just surveys of the brokers. I would tell you that there seems to be a very, very high level of the brokers doing brokers’ opinions of values or BOBs but not necessarily a lot of — that’s not necessarily translating into listings. And I’d also say that the listings that are out there, the conversion rate from listing to closing is probably as small as it’s ever been, given the fact that it’s very difficult to secure any type of financing.

Raymond Martz : And then Anthony, we were very successful last year with the seven transactions that we had. We generated over $330 million of sales proceeds. Certainly, as we look with, as Tom mentioned, with the Fed keeping the rates up, it’s likely to reduce the number of transactions that are going to happen this year, including for potentially us. We’ll still be active and look at that. But to just think things are maybe take a little bit slower now given everything that’s going on with the interest rates and the Fed.

Anthony Powell : Thank you.

Jon Bortz: Thanks, Anthony.

Operator: Thank you. At this time, I’d like to turn the floor back over to Mr. Bortz for closing comments.

Jon Bortz: Great. Great job, everybody. I didn’t think you’d actually follow the rules and limit your questions to one. So thanks for doing that. Clearly, we’re here for additional questions that you have. We’re happy to chat with you, and we thank you for your interest. Please enjoy the Hilton call that starts at 9 and we appreciate your interest in Pebblebrook, and we look forward to talking with you next quarter.

Operator: Ladies and gentlemen, thank you for your participation. This concludes today’s event. You may disconnect your lines you walk off the webcast at this time, and enjoy the rest of your day.