Pebblebrook Hotel Trust Q4 Earnings Call Highlights

Core Insights - Pebblebrook Hotel Trust reported stronger than expected fourth-quarter results for 2025, driven by increased demand trends and disciplined expense management despite challenges from a government shutdown [4][3]. Financial Performance - Adjusted EBITDA rose 11.1% year-over-year to $69.7 million, exceeding guidance by approximately $6 million, supported by strong hotel-level results and lower corporate G&A [2][6]. - Adjusted EPS was $0.27, which is $0.05 above the midpoint of guidance and a 35% increase from the fourth quarter of 2024 [2][3]. - Same-property total RevPAR increased by 2.9%, while same-property hotel EBITDA rose 3.9% to $64.6 million, surpassing the company's outlook by $2.2 million [3][6]. Market Performance - Redeveloped resorts and San Francisco were key growth drivers, with San Francisco's RevPAR increasing by approximately 32-38% and resort EBITDA rising by 17.4% [6][9]. - The Newport Harbor Island Resort showed significant improvement with total RevPAR up 38.5% and EBITDA increasing by $9.3 million [8]. - Other markets like Los Angeles and Washington D.C. faced disruptions, impacting overall performance [7][10]. Cost Management - Same-property expenses grew by 3%, with total expense growth at 2.2% when excluding real estate tax and other credits [11]. - Corporate staffing levels were reduced by about 10% year-over-year, contributing to streamlined operations and expected modest declines in corporate cash G&A for 2026 [12]. Capital Allocation and Outlook - Management lowered 2026 CapEx guidance to $65-75 million and completed over $116 million in asset sales, using proceeds for debt reduction and share repurchases [5][15]. - The company refinanced near-term maturities with a $450 million term loan, extending maturities and increasing the unencumbered asset base [16]. - For early 2026, January RevPAR increased by 4.6%, with February projected to exceed 15% growth, while full-year guidance for 2026 anticipates RevPAR growth of 2% to 4% [18][19].