Pebblebrook Hotel Trust (PEB) has reported 15.35 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $14.03 million, or $0.14 a share in the quarter, compared with $16.58 million, or $0.09 a share for the same period last year.

Revenue during the quarter dropped 7.17 percent to $182.18 million from $196.24 million in the previous year period.

Cost of revenue dropped 4.63 percent or $6.22 million during the quarter to $128.15 million. Gross margin for the quarter contracted 187 basis points over the previous year period to 29.66 percent.

Total expenses were $161.65 million for the quarter, down 2.76 percent or $4.59 million from year-ago period. Operating margin for the quarter contracted 402 basis points over the previous year period to 11.27 percent.

Operating income for the quarter was $20.53 million, compared with $30.01 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $49 million compared with $56 million in the prior year period. At the same time, adjusted EBITDA margin contracted 164 basis points in the quarter to 26.90 percent from 28.54 percent in the last year period.

For the second-quarter, Pebblebrook Hotel Trust forecasts net income to be in the range of $20 million to $23 million. 

For fiscal year 2017, Pebblebrook Hotel Trust forecasts net income to be in the range of $64 million to $73 million.

Occupancy revenue was $125.57 million for the quarter, down 4.44 percent or $5.83 million. Food and beverage revenue was $43.63 million during the quarter, down 13.93 percent or $7.06 million from year-ago period. Revenue from other hotel operating activities was $12.98 million for the quarter, down 8.26 percent or $1.17 million from year-ago period.

"Our portfolio’s operating results in the first quarter were in line with our overall expectations despite greater than anticipated disruption from one of our significant redevelopment projects," said Jon E. Bortz, chairman, president and chief executive officer of Pebblebrook Hotel Trust. "Our financial results were driven by solid demand in several of our markets, including Washington, D.C., which benefitted from the Inauguration and the Women’s March, as well as Nashville, Seattle and San Diego. As expected, this strength was offset by difficult year-over-year comparisons in San Francisco and Los Angeles. The loss of the Super Bowl in San Francisco and the elimination of the prior year demand from the displaced families affected by the Porter Ranch gas leak in Los Angeles negatively impacted our growth. However, excluding the disruption from the redevelopment projects at Revere Hotel Boston Common, Hotel Palomar Los Angeles Beverly Hills and The Tuscan Fisherman’s Wharf, first quarter RevPAR growth would have been 330 basis points higher, which is a better indication of the operating performance of the portfolio."

Net receivables were at $29.11 million as on Mar. 31, 2017, down 7.31 percent or $2.30 million from year-ago.

Total assets declined 8.45 percent or $259.57 million to $2,812.44 million on Mar. 31, 2017. On the other hand, total liabilities were at $1,278.45 million as on Mar. 31, 2017, down 13.60 percent or $201.25 million from year-ago.

Return on assets moved down 6 basis points to 0.83 percent in the quarter. At the same time, return on equity moved up 24 basis points to 0.65 percent in the quarter.