Dafinchi AI

DiamondRock Hospitality Company

DRH

Financial Services

6d

Impact of Property Tax Increase on Hotel Margins

The Chicago property tax increase was larger than expected and contributed to a 97 basis point contraction in hotel EBITDA margins.
Excluding the Chicago tax increase, margins would have increased by 30 basis points, indicating the tax hike's significant impact.
Management highlighted cost management efforts and the importance of property tax considerations in overall expense control.

Pebblebrook Hotel Trust

PEB

Financial Services

2w

Financial Performance Summary

Adjusted EBITDA was $117 million, $6.5 million above midpoint.
Adjusted FFO was $0.65 per share, $0.06 ahead of midpoint.
Business interruption proceeds from LaPlaya insurance claims were $1.5 million above outlook, totaling $3.2 million.
Ended Q2 with $267 million cash on hand, $49 million increase from last quarter; $640 million revolver availability.
Energy costs decreased 2.1% due to efficiency efforts.
Excluding Los Angeles and adjusting for last year's tax credits, same-property hotel EBITDA increased by $2.5 million year-over-year.
Hotel expenses excluding fixed costs rose 1.7% year-over-year; expenses per occupied room declined 0.8%.
Invested $21 million in portfolio during the quarter; on track for $65 million to $75 million in 2025.
LaPlaya resort fully restored; full year BI income forecast increased to $11.5 million from $8.5 million.
Los Angeles caused a $2.2 million EBITDA headwind, about $700,000 more than anticipated.
Newport Harbor Island Resort outperformed expectations with a $1.8 million EBITDA beat.
Out-of-room revenues at resorts rose 3.3%, led by food and beverage growth of 2.5%.
Portland RevPAR climbed 10.4%, San Diego urban hotels posted 8.6% RevPAR growth.
Property insurance renewal reduced premiums by roughly 10% with a 13% rate drop and 4% increase in insurable values.
Resort total RevPAR increased 0.6% with a 1-point occupancy gain offsetting a nearly 3% ADR decline.
Same-property hotel EBITDA totaled $115.8 million for the quarter, $1.8 million ahead of midpoint.
Same-property total property RevPAR grew 1.3% year-over-year; excluding Los Angeles, RevPAR rose 2.7%.
Same-property total revenues grew 1.3%, 2.7% excluding Los Angeles.
San Francisco led with a 15.2% RevPAR increase, driven by occupancy gains and strong business and leisure demand.
Urban portfolio RevPAR increased 1.7% overall and 4.1% excluding Los Angeles.
Weighted average interest cost is 4.2%, with 90% to 96% of debt fixed.

Urban Edge Properties

UE

Financial Services

2w

Record High Shop Occupancy and Pricing Power Enhancement

Shop occupancy reached a record high of 92.5%, up 270 basis points YoY, with a target to exceed 93% in H2 2025.
Management highlighted increased pricing power through better lease terms, including exclusives, radius restrictions, and faster store openings, leveraging high occupancy levels.

Urban Edge Properties

UE

Financial Services

2w

Financial Performance Summary

Adjusted EBITDA to interest expense ratio increased to 3.7x, up nearly 30% from 2.9x a year ago.
FFO as adjusted for the quarter was $0.36 per share.
FFO as adjusted increased by 12% over last year and 8% year-to-date.
Liquidity remains strong with approximately $800 million total liquidity including $118 million in cash.
Net debt to annualized EBITDA was 5.5x in the second quarter.
Same-property net operating income (NOI) increased by 7.4% for the quarter and 5.6% year-to-date.
Same-property NOI growth was driven by higher rental revenue, net recoveries, and year-end CAM reconciliation billings.
Same-property occupancy increased to 96.7%, up 10 basis points from the prior quarter.
Shop occupancy rate reached a record high of 92.5%, up 270 basis points over the prior year.
Year-to-date asset sales totaled $66 million at a blended cap rate of 4.9%.

Apple Hospitality REIT, Inc.

APLE

Financial Services

1w

Financial Performance Summary

Adjusted EBITDAre was approximately $133 million for Q2 2025, down about 6% year-over-year.
Adjusted hotel EBITDA for comparable hotels was $142 million in Q2 2025, down approximately 5% year-over-year.
Comparable hotels total revenue was $380 million for Q2 2025, slightly down from Q2 2024.
MFFO for Q2 2025 was approximately $112 million or $0.47 per share, down 6% on a per share basis compared to Q2 2024.
Q2 2025 comparable hotels RevPAR was $129, down 1.7% compared to Q2 2024, with ADR at $164 and occupancy at 79%.
Total hotel expenses increased by 2.8% for Q2 2025, with payroll per occupied room up 3% to $39.
Year-to-date through June, comparable hotels RevPAR was $120, down 1.1%, ADR was $160 (up 0.4%), and occupancy was 75%.

Cousins Properties Incorporated

CUZ

Financial Services

2w

Financial Performance Summary

Cousins Properties delivered $0.70 a share in FFO for Q2, $0.01 above consensus.
GAAP NOI grew 3.2% and cash NOI grew 1.2% during Q2 compared to last year.
Net debt to EBITDA remains at an industry-leading 5.1x with strong liquidity and a well-laddered debt maturity schedule.
Property tax expenses showed lumpiness but are forecasted to be up 2.8% for 2025 on a gross basis and down 4% net of accrual adjustments.
Same-property net operating income increased 1.2% on a cash basis and 1.6% year-to-date.
Second-generation cash rents increased 10.9% in the quarter and 5.4% year-to-date.
The Link acquisition is immediately accretive with an initial cash yield of 6.7% and GAAP yield of 8.3%.

Service Properties Trust

SVC

Financial Services

1w

Financial Performance Summary

Adjusted EBITDAre decreased by $7.7 million year-over-year to $163.8 million, impacted by an $8.8 million increase in interest expense and lower hotel returns.
Hotel portfolio generated adjusted hotel EBITDA of $73 million, an 11.3% decline year-over-year but towards the high end of guidance.
Net lease portfolio remains stable with 742 properties, 97% leased, $387 million in annual minimum rents, and a 2.04x rent coverage ratio.
Normalized FFO for Q2 2025 was $57.6 million or $0.35 per share, down from $0.45 per share in the prior year quarter.
RevPAR increased 40 basis points year-over-year, outperforming the industry by 90 basis points, driven by occupancy and ADR gains.
The 84 hotels planned for retention showed a 1.5% RevPAR increase but an 11.7% decrease in adjusted hotel EBITDA due to elevated labor costs and renovation disruptions.