Pebblebrook Hotel Trust (NYSE:PEB) Q2 2022 Earnings Conference Call July 27, 2022 9:30 AM ET
Company Participants
Raymond Martz - Chief Financial Officer
Jon Bortz - Chairman and Chief Executive Officer
Tom Fisher - Chief Investment Officer
Conference Call Participants
Dori Kesten - Wells Fargo
Gregory Miller - Truist Securities
Bill Crow - Raymond James
Neil Malkin - Capital One Securities
Aryeh Klein - BMO Capital Markets
Smedes Rose - Citi
Shaun Kelley - Bank of America
Michael Bellisario - Baird
Operator
Greetings and welcome to the Pebblebrook Hotel Trust Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Raymond Martz, Chief Financial Officer. Thank you. Please go ahead.
Raymond Martz
Thank you, Donna and good morning everyone. Welcome to our second quarter 2022 earnings call and webcast. Joining me today are Jon Bortz, our Chairman and Chief Executive Officer; and Tom Fisher, our Chief Investment Officer. But before we start, a reminder that many of our comments today are considered forward-looking statements under federal securities laws.
These statements are subject to numerous risks and uncertainties as described in our SEC filings and future results could differ materially from those implied by our comments today. Forward-looking statements that we make today are effective for today, July 27, 2022, and we undertake no duty to update them later. We'll discuss non-GAAP financial measures on today's call and we provide reconciliations of these non-GAAP financial measures on our website at pebblebrookhotels.com.
Last night, we reported our very favorable Q2 results. Faster growth than we expected in business travel, both group and transient, coupled with continuing robust leisure demand allowed us to significantly exceed our expectations from 90 days ago. Our urban properties led the upside.
Second quarter adjusted Funds From Operations of $0.72 per share was $0.09 above the top-end of our outlook and 83% of Q2 2019s AFFO. This represents a dramatic improvement to both last year when we had negative AFFO of $0.10 per share in Q1, which was just 23% of Q1 2019. This strong performance was driven by the hard and intelligent work of our hotel operating teams, management companies, and asset managers. We thank each of them for their great effort and achievements in the quarter.
On the revenue side, same-property RevPAR came within 5% of Q2 2019, even though occupancy was down 20% showing a sizable demand recovery opportunity we still have ahead. Average daily rate climbed a very strong 18.7%, compared to Q2 2019. Non-room revenue per occupied room rose an even stronger 25.1% and total revenue per occupied room increased by 20.8%. All representing an acceleration from Q1's growth rates.