Group 1 - The article emphasizes the importance of making informed investment choices to improve financial outcomes [1] - The investing group Trade With Beta offers services such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, hedging strategies, and an actively managed portfolio [1] - The article indicates that the author has a beneficial long position in the shares of PEB, highlighting personal investment interests [1]

Financial Data and Key Metrics Changes - For the full year 2024, same-property total RevPAR increased by 2.1%, driven by gains across both urban and resort properties along with stronger out-of-room spending [5] - Adjusted EBITDA rose by 0.8% to $359.2 million, exceeding the midpoint of the outlook by $11.2 million [5] - Adjusted FFO per diluted share grew by 5% to $1.68, surpassing the outlook midpoint by $0.09 [5] Business Line Data and Key Metrics Changes - In Q4, same-property total RevPAR increased by 1.8%, with resorts growing by 4% and urban hotels by 0.7% [6] - Same-property resort occupancy jumped by 3.7% to 65%, while urban occupancy rose by 2.9% to 68.1% [11] - Same-property resort revenue grew by 4.3% in Q4, outpacing the 0.7% growth at urban properties [13] Market Data and Key Metrics Changes - San Diego, the second-largest market by EBITDA, saw a 6.9% increase in occupancy, while San Francisco and Chicago improved by 2.8% [12] - For the full year, resort total revenues rose by 1.2%, while urban properties posted a 3.1% gain [14] - Excluding challenges in San Francisco, LA, and Portland, same-property urban total revenue growth would have been 7.7% [14] Company Strategy and Development Direction - The company completed a $525 million portfolio-wide redevelopment program, with early returns from recent investments being encouraging [21] - In 2025, capital investments are projected at $65 million to $75 million, reflecting the portfolio's excellent condition and reduced need for additional capital [22] - The company anticipates continued upside from strategic investments made in recent years, with significant RevPAR share gains expected [36] Management's Comments on Operating Environment and Future Outlook - Management noted that the normalization of resort rates has largely run its course, with no further meaningful declines expected in 2025 [15] - The company expressed optimism about the recovery of urban properties, despite challenges in key markets like San Francisco, LA, and Portland [35] - Management highlighted potential economic concerns due to domestic policy announcements, which could impact the overall outlook [44] Other Important Information - The company reduced net debt to EBITDA to 5.8 times from about 6.5 times in 2023, reflecting strong operating performance and proceeds from the Hurricane Ian settlement [28] - The company received about $10 million in real estate tax and municipal tax credits in 2024, which are not assumed in the 2025 outlook, creating a headwind to expense growth [20] Q&A Session Summary Question: Expectations for out-of-room spend growth in 2025 - Management expects out-of-room spend to increase at a rate greater than RevPAR growth, driven by positive client feedback and increased spending in various non-room revenue areas [66][68] Question: Insights on the DC market and government exposure - Management noted high anxiety among government employees but highlighted positive demand drivers such as the inauguration and increased activity in the first year after elections [72][75] Question: Confidence in leisure rates and potential for growth - Management indicated that some properties are expected to see rate increases, with confidence stemming from strong bookings and rate trends [85][86] Question: Impact of LA wildfires on the portfolio - Management acknowledged the uncertainty of the impact but noted recent positive trends in travel recovery, with expectations for significant demand from rebuilding efforts [90][92] Question: Updates on San Francisco market developments - Management reported improvements in San Francisco, including increased demand and a more business-friendly environment, with expectations for mid to high single-digit RevPAR growth [127]

Core Insights - Pebblebrook Hotel (PEB) reported revenue of $337.6 million for Q4 2024, a year-over-year increase of 1.1% and an EPS of $0.20 compared to -$0.37 a year ago, exceeding the Zacks Consensus Estimate of $330.16 million by 2.25% and delivering an EPS surprise of 66.67% [1] Financial Performance - Same-Property RevPAR growth rate was 0.9%, outperforming the average estimate of -0.7% from three analysts [4] - Total Guest Rooms stood at 12,000, exceeding the two-analyst average estimate of 11,702 [4] - Revenue from Food and Beverage reached $93.76 million, surpassing the estimated $89.04 million by five analysts, reflecting a 3.4% increase year-over-year [4] - Revenue from Other Operating activities was $36.13 million, slightly above the estimated $35.53 million, marking a 0.4% increase year-over-year [4] - Room Revenue was reported at $207.72 million, exceeding the estimated $205.58 million, with a year-over-year increase of 0.2% [4] - Net Earnings Per Share (Diluted) was -$0.51, compared to the average estimate of -$0.40 from five analysts [4] Stock Performance - Shares of Pebblebrook Hotel have declined by 16.8% over the past month, while the Zacks S&P 500 composite decreased by 2.3%, indicating potential underperformance in the near term with a Zacks Rank of 4 (Sell) [3]

分组1 - Pebblebrook Hotel reported quarterly funds from operations (FFO) of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, but down from $0.21 per share a year ago, representing an FFO surprise of 66.67% [1] - The company achieved revenues of $337.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.25%, compared to $334.09 million in the same quarter last year [2] - Pebblebrook Hotel has outperformed consensus FFO estimates in all four quarters over the past year and has topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has underperformed the market, losing approximately 14.9% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current consensus FFO estimate for the upcoming quarter is $0.15 on revenues of $316.22 million, and for the current fiscal year, it is $1.58 on revenues of $1.5 billion [7] - The Zacks Industry Rank for REIT and Equity Trust - Other is in the bottom 46% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Financial Performance - Net income for 2024 was $0.0 million, with Same-Property Total RevPAR growth of 2.1% compared to 2023[1] - Adjusted FFO per diluted share increased by 5.0% to $1.68 in 2024, up from $1.60 in 2023[1] - Same-Property Hotel EBITDA for 2024 was $350.4 million, reflecting a 0.9% increase from 2023[1] - Total revenues for Q4 2024 were $337.6 million, a slight increase of 0.5% compared to $334.1 million in Q4 2023[41] - Net income attributable to common shareholders for Q4 2024 was a loss of $61.1 million, compared to a loss of $45.0 million in Q4 2023[41] - Funds from Operations (FFO) for Q4 2024 were $53.8 million, up 84.3% from $29.2 million in Q4 2023[53] - Adjusted FFO available to common share and unit holders for Q4 2024 was $23.9 million, a decrease of 4.0% from $24.9 million in Q4 2023[53] - The company reported a net loss of $49.8 million for Q4 2024, compared to a net loss of $41.9 million in Q4 2023[53] - The company’s net income (loss) per share available to common shareholders, basic, was $(0.51) for Q4 2024, compared to $(0.37) for Q4 2023[41] - EBITDA for the three months ended December 31, 2024, was $36,308 thousand, down from $46,583 thousand in 2023, indicating a decrease of 22%[55] Capital Investments and Financing - Capital investments in 2024 totaled approximately $91 million, completing a $525 million multi-year capital reinvestment program[1] - In 2024, Pebblebrook completed $1.6 billion in debt financings, enhancing balance sheet flexibility and eliminating significant maturities until December 2026[22] - As of December 31, 2024, the Company had approximately $217.6 million in cash and $642.6 million of undrawn availability on its $650 million senior unsecured revolving credit facilities[23] - In 2025, capital investments are expected to be between $65 million and $75 million, significantly lower than previous years[1] Outlook and Projections - The 2025 outlook projects Same-Property Total RevPAR growth rate between 1.8% and 3.7%[1] - The Company declared a quarterly cash dividend of $0.01 per share on its common shares as of December 16, 2024[24] - The 2025 Outlook estimates a net loss ranging from $15.5 million to $1.5 million, with Adjusted EBITDAre projected between $341.5 million and $355.5 million[28] - The Q1 2025 outlook includes a net loss estimate between $33.9 million and $29.9 million, with Adjusted FFO per diluted share projected between $0.09 and $0.13[29] Market and Operational Statistics - The company owns 46 hotels and resorts, totaling approximately 12,000 guest rooms across 13 urban and resort markets[31] - Approximately 91% of the Company's $2.3 billion in consolidated debt is effectively fixed at a 4.0% interest rate[22] - The weighted-average maturity of the Company's debt is approximately 3.1 years, with a weighted-average interest rate of 4.2%[22] - Same-Property Occupancy increased to 67.4% for the three months ended December 31, 2024, from 64.3% in 2023, representing a 4.8% increase[62] - Same-Property Total RevPAR for the three months ended December 31, 2024, was $304.43, up 1.8% from $299.08 in 2023[62] - Same-Property Revenues for the three months ended December 31, 2024, totaled $321,605 thousand, compared to $315,747 thousand in 2023, showing an increase of 1.1%[70] Impact of External Events - The company anticipates a $9.0 million impact on Same-Property Hotel EBITDA due to the Los Angeles fires, reducing Adjusted FFO by $0.07 per diluted share[1] - The impact of the LA fires is estimated to reduce Same-Property RevPAR growth by 330 to 430 basis points in Q1 2025 and 100 to 130 basis points for the full year[28] Historical Performance - In 2023, the full-year hotel revenues were $1,365.7 million, slightly down from $1,361.0 million in 2019, indicating a recovery trend post-pandemic[73] - The average daily rate (ADR) in 2023 was $306, up from $263 in 2019, reflecting a 16.3% increase[73] - The occupancy rate for 2023 was 68%, compared to 81% in 2019, showing a recovery but still below pre-pandemic levels[73] - The hotel EBITDA margin for 2023 was 25.6%, down from 30.7% in 2019, indicating pressure on profitability[73] - The company has excluded LaPlaya Beach Resort & Club from its operating results due to its closure following Hurricane Ian, affecting comparability[74] Regional Performance - The total EBITDA for Boston hotels in 2023 was $85.5 million, showing a recovery from a loss of $15.0 million in 2022, indicating a significant turnaround[84] - The San Diego hotel market reported a total EBITDA of $45.0 million in 2023, down from $46.8 million in 2022, reflecting a decrease of about 3.8%[84] - The overall EBITDA for the San Diego Urban market in 2023 was $34.3 million, a decrease from $38.2 million in 2022, reflecting a decline of about 10.2%[84] Future Strategies - The company plans to continue expanding its market presence and exploring new acquisition opportunities in the upcoming quarters[87] - Future guidance indicates a focus on enhancing operational efficiency and increasing profitability across all hotel segments[87]

Company Overview - As of December 31, 2024, Pebblebrook Hotel Trust owned interests in 46 hotels with a total of 11,933 guest rooms[21]. - The company focuses on acquiring hotel properties in major U.S. cities and resort areas, emphasizing upper-upscale full-service hotels[23]. - The company aims for favorable risk-adjusted returns by targeting upper-upscale hotels in markets with barriers-to-entry and strong demand growth characteristics[24]. - The company seeks to enter flexible management contracts with third-party hotel management companies to maximize return on investment[26]. - The company has developed strategic capital investment plans to enhance hotel profitability through expansions, renovations, and technology upgrades[30]. Financial Strategy and Performance - The company anticipates using net proceeds from equity and debt offerings for future acquisitions and property redevelopments[33]. - The hotel industry is highly competitive, affecting occupancy, ADR, and RevPAR, which can impact financial results[37]. - The company is required to distribute at least 90% of its REIT taxable income to maintain its REIT status, limiting its ability to retain earnings for growth[65]. - Increased hotel operating expenses, including wage and benefit costs, could adversely impact the company's financial condition and ability to make distributions[71]. - The company has placed mortgages on hotel properties to secure debt, and failure to meet debt obligations may lead to foreclosure or unfavorable sale terms[83]. Risks and Challenges - A downturn in the lodging industry, particularly in major gateway markets, could materially affect the company's financial condition and ability to distribute dividends[63]. - The company faces risks associated with franchise agreements, including potential loss of brand recognition and associated revenues if a franchise license is canceled[74]. - The company maintains cash in a limited number of financial institutions, which may not be fully insured, posing a risk to cash recovery[78]. - Conflicts of interest may arise despite the company's policy to address them, potentially affecting decision-making[80]. - The company may engage in joint ventures for hotel investments, which could limit decision-making authority and expose it to risks from co-venturers' financial conditions[81]. Debt and Capital Management - Debt service obligations could adversely affect operating results and may require the company to sell hotel properties, jeopardizing its REIT qualification and ability to distribute to shareholders[82]. - Higher interest rates could increase debt service requirements and reduce available funds for shareholder distributions and operations[84]. - Existing debt covenants may restrict the company's operations and ability to make distributions, potentially leading to defaults if violated[86]. - Cash trap provisions in mortgage agreements could limit distributions to shareholders if hotel performance declines[87]. - The cyclical nature of the lodging industry may lead to fluctuations in revenues, potentially requiring short-term borrowings to fund distributions[99]. Market and Competitive Landscape - Competition for acquisitions may limit the number of properties the company can acquire, affecting growth opportunities[98]. - The company faces risks from increased competition due to the rise of Internet travel intermediaries and alternative lodging marketplaces, which may reduce revenues and profitability[104]. - The reliance on technology for virtual meetings could decrease business travel demand, adversely affecting hotel room occupancy and financial performance[105]. Compliance and Regulatory Issues - The company is committed to maintaining compliance with environmental regulations and ADA requirements across its properties[41]. - The company may incur substantial costs related to compliance with the Americans with Disabilities Act (ADA) and other governmental regulations[125]. - The presence of hazardous substances on properties could result in significant remediation costs, affecting cash available for distributions[140]. - The company is subject to operational risks from compliance with environmental regulations, which may require additional capital investments and increase operating costs[112]. Shareholder and Equity Matters - The board of trustees has the authority to issue up to 500 million common shares and 100 million preferred shares, potentially delaying changes in control[141]. - Future equity issuances may dilute current shareholders' interests as the company raises capital for acquisitions and improvements[153]. - The company has issued eight series of preferred shares, with four remaining outstanding, and three series of senior unsecured notes, with two remaining outstanding[154]. - Holders of preferred shares are entitled to cumulative dividends before any dividends can be declared on common shares, and upon liquidation, they receive a liquidation preference of $25.00 per share plus any accrued and unpaid distributions[155]. - The company must ensure that at least 75% of its assets consist of cash, government securities, and qualified real estate assets to maintain REIT status[167]. Cybersecurity and Technology - Cybersecurity risks are significant, with potential financial losses from security breaches despite maintaining cyber insurance[107]. - The company has identified cybersecurity risk as a key enterprise risk and has implemented controls to mitigate this risk[192]. - The company maintains cybersecurity insurance coverage to mitigate financial exposure to incidents[193]. - The company has established a cybersecurity incident response plan in collaboration with the MSP, detailing roles and responsibilities for managing cybersecurity incidents[195]. - The company conducts surveys of hotel managers and franchisors to assess their cybersecurity risk management programs, identifying gaps and requesting remediation[198]. Share Repurchase and Dividends - The board of trustees authorized a share repurchase program of up to $150.0 million, which commenced in June 2023, with $131.0 million remaining available for repurchase as of December 31, 2024[220]. - Distributions are subject to the discretion of the board of trustees and depend on cash flow, financial condition, and capital expenditure requirements[217]. - The company may suspend or discontinue its share repurchase program at any time[220]. - The average price paid for shares acquired to cover taxes was $16.03 per share[219].

Core Insights - Analysts project Pebblebrook Hotel (PEB) will report quarterly earnings of $0.12 per share, a decline of 42.9% year over year, with revenues expected to reach $330.16 million, down 1.2% from the same quarter last year [1] Earnings Projections - The consensus EPS estimate for the quarter has been adjusted downward by 2% over the past 30 days, indicating a reassessment by covering analysts [2] - Revisions to earnings projections are critical for predicting investor behavior and are strongly linked to short-term stock price performance [3] Revenue Estimates - The consensus estimate for 'Revenue- Food and beverage' is $89.04 million, reflecting a decline of 1.8% from the previous year - 'Revenue- Other operating' is projected at $35.53 million, indicating a decrease of 1.3% year over year - 'Revenue- Room' is estimated at $205.58 million, showing a year-over-year change of -0.9% [5] Key Metrics - Analysts estimate a 'Same-Property RevPAR growth rate' of -0.7%, compared to 5% from the previous year - The projected 'Total Guest Rooms' is 11,702, down from 11,924 year over year - 'Depreciation and amortization' is expected to be $56.72 million, compared to $61.05 million in the same quarter last year [6] Stock Performance - Over the past month, Pebblebrook Hotel shares have declined by 12.3%, while the Zacks S&P 500 composite has increased by 2.2% - Based on its Zacks Rank 4 (Sell), PEB is expected to underperform the overall market in the upcoming period [7]

Group 1 - Some hospitality REITs have issued preferred shares that may present attractive investment opportunities due to well-covered preferred dividends [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1]

Financial Data and Key Metrics Changes - Same-property RevPAR increased by 2.2%, which would have exceeded 2.4% without the impact of hurricanes [7] - Total RevPAR rose by 2.7%, driven by increased occupancy and a 3.8% growth in out-of-room spending [8] - Adjusted EBITDA exceeded the midpoint of Q3 outlook by $8.7 million, and adjusted FFO beat the midpoint by $9.7 million or $0.08 per share [9] Business Line Data and Key Metrics Changes - Urban properties saw a 3.7% year-over-year occupancy increase, with urban weekend occupancy exceeding 85% [12] - Resort same-property occupancy declined by 5.9% year-over-year, reaching 74.3%, but weekday occupancy improved by 6.7% [14] - Same-property resort total RevPAR increased by 2.5%, significantly higher than the 0.8% increase in same-property resort RevPAR alone [18] Market Data and Key Metrics Changes - Strongest urban markets included Chicago, San Diego, and Boston, benefiting from active convention calendars and improved weekday business travel [11] - Combined RevPAR for San Francisco, Los Angeles, and Portland declined by 5.7% in Q3, with a forecasted decline of 5.6% for the full year [49] - Urban properties in Boston, San Diego, and Chicago grew combined RevPAR by 9.6% in Q3, forecasted to achieve 8.1% growth for the full year [50] Company Strategy and Development Direction - The company is focused on capital reinvestments to enhance property appeal and gain market share [15] - Major capital investment program is largely complete, with expectations for significantly lower CapEx over the next few years [26] - The company plans to continue leveraging its redeveloped properties to drive significant RevPAR growth and EBITDA gains [56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, expecting demand growth to align with GDP growth, leading to higher occupancies [42] - The company anticipates headwinds in urban markets turning into tailwinds, with significant growth from ongoing share gains in redeveloped properties [59] - Management noted that the normalization of leisure demand and the return of international inbound travel could further benefit urban markets [60] Other Important Information - The company has strengthened its financial position by extending debt maturities and reducing bank term loans [35] - The decision to discontinue monthly operating updates signals confidence in the improved stability of the industry and portfolio [36] - The company expects a combined impact of hurricanes to reduce Q4 same-property RevPAR by approximately 100 basis points [31] Q&A Session Summary Question: Will LaPlaya exceed this year's original $24 million EBITDA expectation next year? - Management believes it is reasonable to expect LaPlaya to return to its original EBITDA expectations due to increased group bookings and club growth [63] Question: What are the expectations for leisure customers and pushing rates at resorts in 2025? - Management indicated that while average rates are stabilizing, they expect to push rates higher as occupancy increases, particularly with group bookings [66] Question: What are the expectations for wages and benefit growth next year? - Management anticipates average wage increases to be slightly lower than last year, with union markets potentially seeing larger increases [68] Question: How do you rank San Francisco, Portland, and LA for long-term prospects? - Management is optimistic about the underlying fundamentals of these markets and believes they will recover, although it may take time [72] Question: What is the update on Curator's progress and goals? - Curator has around 100 members and is expected to grow, providing significant cost savings and value creation for properties [83] Question: What are the expectations for CapEx spending in 2025? - Management expects a run rate of $65 million to $75 million for CapEx in 2025, significantly lower than previous years [90]

Core Insights - Pebblebrook Hotel (PEB) reported revenue of $404.53 million for the quarter ended September 2024, reflecting a 2.2% increase year-over-year and a surprise of +0.74% over the Zacks Consensus Estimate of $401.57 million [1] - The company achieved an EPS of $0.59, a significant improvement from -$0.57 in the same quarter last year, with an EPS surprise of +11.32% compared to the consensus estimate of $0.53 [1] Financial Performance Metrics - Same-Property RevPAR growth rate was 2.7%, exceeding the average estimate of 1.8% from three analysts [3] - Total Guest Rooms stood at 12,000, surpassing the two-analyst average estimate of 11,702 [3] - Revenue from Food and Beverage reached $96 million, compared to the estimated $93.64 million, marking a year-over-year increase of +4.7% [3] - Revenue from Other Operating activities was $45.78 million, exceeding the five-analyst average estimate of $44.91 million, representing a +2.3% year-over-year change [3] - Room revenue was reported at $262.76 million, slightly above the $261.92 million average estimate, indicating a +1.3% change year-over-year [3] - Net Earnings Per Share (Diluted) was $0.24, significantly higher than the $0.01 average estimate from five analysts [3] Stock Performance - Shares of Pebblebrook Hotel have returned +3.7% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]