GO
Loading...

Cramer Interviews Pebblebrook Hotel Trust CEO

Thursday, 7 Jun 2012 | 11:37 AM ET

"Even after an incredible day like today, we still need to play it safe," Jim Cramer said Wednesday on CNBC's "Mad Money." And to him, that means sticking with two major D's — dividends and domestic security.

"Those are the things that will keep you safe if this rally reverses itself and the market takes a turn for the worse," he said. "Something we’ve seen happen many times before."

Take Pebblebrook Hotel Trust, for example. The Bethesda, Md.-based real estate investment trust does all of its business domestically — with 21 hotels in 14 markets all across major metropolitan areas like Los Angeles and New York City. Formed back in December 2009, the REIT skillfully used the economic downturn to buy out upscale hotels at bargain prices, and unlike other REITs out there, Pebblebrook isn't "saddled with any legacy assets that the company paid way too much for" prior to the recession.

Now, Pebblebrook's properties are staging a comeback, Cramer said. The company reported a "terrific" last quarter and its occupancy rate grew 6 percent to roughly 74 percent. Pebblebrook is also renovating some of its hotels, which should allow them to charge more per room, he said. On top of that, chairman and CEO Jon Bortz previously ran LaSalle Hotel Properties, which "dramatically" outpaced its peers under his reign.

Pebblebrook Hotel Trust CEO: We Are a Growth Company Right Now
Pebblebrook Hotel Trust is classified as a REIT, owns 21 hotels in 14 markets, and began operating at the beginning of the economy's recovery. Jon Bortz, Pebblebrook Hotel Trust CEO, discusses the state of hotel construction in the U.S. and how his company has taken advantage of the downturn in the market.

To learn more about the company and its future prospects, Cramer sat down to chat with Bortz. Watch the video to see the full interview.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

  Price   Change %Change
PEB
---

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.