Jon Bortz, chairman, president and CEO of Pebblebrook Hotel Trust (NYSE: PEB), joined Nareit for a video interview at REITworld 2017.
Pebblebrook owns 28 full-service hotels located in nine states and the District of Columbia.
Bortz stressed that part of Pebblebrook’s expertise has been its ability to buy properties that are not living up to their full potential. Currently, the REIT is finishing up refurbishment work on four hotels that were part of a larger group purchased in 2015. Bortz said he expects the refurbished properties to provide a “really nice tailwind over the next few years.”
Meanwhile, Bortz said the biggest surprise in the lodging segment this year has been the disconnect between the healthy macroeconomic environment and the lack of growth in business travel. Leisure travel, on the other hand, has fared well, he noted.
Bortz also commented on the popularity of boutique hotel brands, which he attributed to the growing trend of sharing experiences on social media.
Looking ahead, Bortz said the company will likely sell some assets next year: “It’s really driven by taking advantage of a very strong private market for assets.” Pebblebrook will also buy back stock if there is an attractive discount for that use of capital, he added.