Strong Operational Performance
Same-property hotel EBITDA totaled $105.4 million, in line with our midpoint, while adjusted EBITDA came in at $99.2 million, exceeding our midpoint by $2.2 million. Adjusted FFO per share was $0.51, $0.03 above our midpoint.
San Francisco Market Strength
San Francisco RevPAR rose 8.3% in Q3 on a 690 basis point jump in occupancy, driving EBITDA higher by 10.9%. Growth was fueled by an active convention calendar and a continued recovery in both business travel and leisure demand.
Successful Cost Management
Same-property hotel expenses before fixed costs rose just 0.4% year-over-year, and on a per occupied room basis, expenses declined about 2%.
Positive Outlook for 2026
Expectations for 2026 are optimistic due to a favorable macroeconomic setup, low supply growth, and significant events like the World Cup and America's 250th anniversary celebrations.
Redevelopment Program Success
Properties like Newport Harbor Island Resort and Jekyll Island Club Resort showed significant growth, with Newport Harbor RevPAR jumping 29% and total RevPAR surging 35.9% versus pre-renovation performance in 2023.