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Citing COVID-19, Pebblebrook Hotel Trust withdraws guidance
Citing COVID-19, Pebblebrook Hotel Trust withdraws guidance
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A Bethesda hotel real estate investment trust is withdrawing its guidance to investors for the first quarter of 2020 and for the entire year because of the impact of COVID-19.
Pebblebrook Hotel Trust announced Monday that it was withdrawing the statements because of a large number of recent corporate group cancellations and corporate travel policy restrictions because of concerns about the disease, which is caused by the new coronavirus.
The company said it is experiencing material declines in net bookings when compared to the previous year, and the guidance issued Feb. 20, calling for revenues of $79.3 million to $86.8 million for the quarter and $198.7 million to $211.7 million for 2020, didn’t account for any impact from the disease other than what was known at the time.
Jon E. Bortz, chairman, president and CEO of Pebblebrook, said in a news release the company is adjusting operations and implementing cost reduction plans to blunt the outbreak’s negative impact on revenue.
Separately, the the trust announced it closed Friday on the sale of the 422-room InterContinental Buckhead Atlanta in Atlanta, Georgia and the 237-room Sofitel Washington DC Lafayette Square in Washington, D.C. for $331 million. Pebblebrook plans to use the proceeds for general business purposes, which may include debt reduction.
