Jon Bortz, chairman, president and CEO of Pebblebrook Hotel Trust (NYSE: PEB), joined REIT.com for a CEO Spotlight video interview during REITWeek 2015: NAREIT’s Investor Forum, held in New York.
Bortz described the operating fundamentals for hotels in U.S. gateway markets as “terrific.” The recovery in the economy has been positive for the hotel sector, and business and leisure travel rates have held steady, according to Bortz.
“We’re in an environment today where demand continues to outpace supply growth,” he said. He noted that supply growth has been capped at roughly 1 percent annually. The tight supply-demand balance has enabled firms to retain their pricing power in the market, according to Bortz.
The strength of the dollar has discouraged some foreign travel to the United States, Bortz said. Soft spots include Japan and Western Europe, according to Bortz.
Turning to the renovation and redevelopment projects taking place at Pebblebrook hotels, Bortz noted that the firm has focused on acquiring assets that could benefit from refurbishments and repositioning.
“Our focus is really on providing a unique experience in our hotels,” he said. “The renovation cycle for us is going to continue, particularly if we continue to have success with additional acquisitions.”