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]

Pebblebrook Hotel (PEB) came out with quarterly funds from operations (FFO) of $0.59 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to FFO of $0.61 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 11.32%. A quarter ago, it was expected that this hotel investment company would post FFO of $0.60 per share when it actually produced FFO of $0.69, delivering a surprise of 15%.Over the last four quarters ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental ...

Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Pebblebrook Hotel (PEB) or Omega Healthcare Investors (OHI) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companie ...

Pebblebrook Hotel (PEB) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, PEB broke out above the 50-day moving average, suggesting a shortterm bullish trend. The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend. Shares of PE ...

Pebblebrook Hotel Trust (PEB) witnessed same-property total revenues growth of 1.7% in July on a yearover-year basis. Per its recently released update, this was driven by a 4.3% rise in non-room revenue. The company noted that for the overall portfolio, same-property revenue per available room ("RevPAR") exhibited a year-over-year increase of 0.3%, mainly driven by a 3.1% rise in occupancy. However, a 2.8% decrease in average daily rate ("ADR") hurt RevPAR to some extent. Management expects July to be the s ...