US-based real estate investment trust Pebblebrook Hotel Trust has finalised the sale of the Montrose at Beverly Hills, a 133-room property located in West Hollywood, California for $44.25m. The transaction with an undisclosed third party closed on 19 November 2025. The agreed sale price, measured against the hotel’s financial performance over the 12 months ending 30 September, reflects earnings before interest, taxes, depreciation, and amortisation (EBITDA) multiple of 16.1 and a net operating income cap ...

Core Insights - Hyatt Hotels Corporation reported third-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate, while the top line grew year-over-year and the bottom line declined [1][4]. Financial Performance - Adjusted loss per share was 30 cents, missing the consensus estimate of 49 cents, compared to an adjusted earnings per share of 94 cents in the same quarter last year [4][10]. - Revenues reached $1.78 billion, missing the consensus mark of $1.83 billion, but increased by 9.6% year-over-year [4][10]. - Owned and Leased revenues were $429 million, up from $287 million in the prior-year quarter, while Distribution revenues declined by 13.1% year-over-year to $192 million [5]. Revenue Breakdown - Gross fees increased by 5.9% year-over-year to $283 million, with base management fees rising by 10%, incentive management fees up by 2%, and franchise and other fees advancing by 4% [6]. - Net fees for the quarter were $249 million, compared to $241 million in the prior-year quarter [7]. Operating Highlights - Adjusted EBITDA was $291 million, up 5.6% year-over-year, and increased by 10.1% after adjusting for assets sold in 2024 [8]. - Adjusted EBITDA in the Management and Franchising segment was $226 million, compared to $221 million in the prior-year quarter [9]. Balance Sheet - As of September 30, 2025, cash and cash equivalents were $749 million, down from $912 million in the previous quarter, with total liquidity at $2.2 billion [11]. - Total debt remained flat at $6 billion [11]. Business Updates - In Q3, 5,163 rooms were added to Hyatt's system, with a pipeline of approximately 141,000 rooms, reflecting a 4.4% year-over-year increase [12]. - The company anticipates net rooms growth of 6.3% to 7% year-over-year, excluding Playa [13]. 2025 Outlook - Expected adjusted general and administrative expenses for 2025 are between $446 million and $452 million, with capital expenditures anticipated at about $225 million [13]. - System-wide RevPAR is projected to rise by 2-2.5% from the 2024 level, with adjusted EBITDA expected to be in the range of $1.09-$1.11 billion [14].

Group 1 - Baron Focused Growth Fund reported a 4.83% appreciation in Q3 2025, underperforming the Russell 2500 Growth Index's 10.73% gain due to economic growth slowdown concerns affecting Consumer Discretionary stocks [1] - The fund's performance was negatively impacted by rising competitive pressures affecting the valuations of some holdings [1] Group 2 - Choice Hotels International, Inc. (NYSE:CHH) experienced a one-month return of -10.03% and a 52-week loss of 36.67%, closing at $91.50 per share with a market capitalization of $4.23 billion on November 4, 2025 [2] - The decline in Choice Hotels' shares by 15.6% during the quarter hurt the fund's performance by 44 basis points, driven by concerns over slowing revenue-per-available-room (RevPAR) growth [3] - Management is reducing exposure to RevPAR fluctuations by expanding higher-margin, non-RevPAR fee income and leveraging a 70-million-member loyalty database for partnerships [3] - The company is focusing on adding higher-revenue units at a low single-digit rate, emphasizing larger room sizes and premium royalty rates [3] - Revenue growth is expected to accelerate due to a robust pipeline of new projects and synergies from the Radisson Americas acquisition [3] - Choice Hotels has a strong balance sheet, positioning it to return capital to shareholders through dividends and share repurchases [3]

Core Insights - Hilton reported an increase in profit and revenue for Q3 2025, with net income of $420 million and diluted EPS of $1.78, compared to $344 million and $1.38 per share in Q3 2024 [1][2] - Revenue for the quarter rose by 8.8% to $3.12 billion, while adjusted EBITDA was $976 million [2] - System-wide comparable RevPAR decreased by 1.1% on a currency neutral basis compared to Q3 2024, attributed to modest occupancy and average daily rate declines [2][4] Financial Performance - For the nine months ending September 30, 2025, system-wide comparable RevPAR increased by 0.3%, with net income at $1.16 billion and adjusted EBITDA at $2.78 billion, resulting in diluted EPS of $4.84 [3] - Hilton forecasts full year 2025 net income between $1.604 billion and $1.625 billion, with adjusted EBITDA expected to be in the range of $3.685 billion to $3.715 billion [4] Development and Growth - Hilton approved 33,000 rooms for development in Q3 2025, increasing its global pipeline to 515,400 rooms, a 5% increase from the previous year [3] - The company added 24,800 rooms to its system, resulting in a net addition of 23,200 rooms and a 6.5% rise in net unit growth from the same point last year [4] - Hilton projects net unit growth between 6.5% and 7.0% in 2025, supported by a strong development pipeline and new brand introductions [6][7] Strategic Initiatives - Hilton opened its 9,000th property with the launch of Signia by Hilton La Cantera Resort and Spa, marking nearly three hotel openings per day since August 2024 [6][7] - The introduction of a new lifestyle brand, Outset Collection by Hilton, is part of the strategy to grow its portfolio and increase market share in hotel conversions in the US [7]

Financial Performance - H1 2025 global RevPAR increased by 1.8%[15], with ADR up by 1.4%[15] and occupancy up by 0.3%pts[15] - Fee margin increased by 3.9%pts to 64.7%[15], with TTM EBITDA reaching $1.259 billion, a 10% increase[15] - Adjusted EPS increased by 19% to 242.5¢[15], and free cash flow reached $302 million[15] - The interim dividend increased by 10% to 58.6¢[15] System Growth and Development - Gross system growth increased by 7.7% YOY, and net system growth increased by 5.4% YOY[15] - A record 31.4k rooms (207 hotels) were opened in H1, a 75% increase YOY[15] - Signings reached 51.2k rooms (324 hotels), a 15% increase YOY[15] - The pipeline consists of 338k rooms (2,276 hotels), representing 34% of the current system size[16] Capital Returns - $423 million (47%) of the $900 million share buyback program has been returned, representing 2.4% of the opening share count[15] - The company expects to return >$1.1 billion in 2025, representing 5.9% of the opening market cap[15] Strategic Priorities - Loyalty enrolments increased by 22% YOY in H1[102], with ~65% of room nights booked by members[102] - Co-brand fee revenue is on track to double by 2025 and more than triple by 2028[114] Regional Performance - Americas RevPAR increased by 1.4%[184], with a fee margin of 82.7%[184] - EMEAA RevPAR increased by 4.1%[188], with a fee margin of 65.8%[188] - Greater China RevPAR decreased by 3.2%[192], with a fee margin of 57.9%[192]

Core Viewpoint - Host Hotels & Resorts, Inc. (HST) is expected to report second-quarter 2025 earnings on July 30, with anticipated revenue growth but a decline in adjusted funds from operations (AFFO) per share [1][6]. Financial Performance - In the previous quarter, HST reported an AFFO per share of 64 cents, exceeding the Zacks Consensus Estimate of 56 cents, reflecting a year-over-year revenue increase [2]. - Over the last four quarters, HST's AFFO per share surpassed estimates three times, with an average surprise of 6.52% [2]. Market Position and Strategy - HST has a portfolio of luxury and upper-scale hotels in prime U.S. markets and the Sunbelt region, strategically located to drive demand [2][3]. - Continuous improvement in group business has contributed to hotel revenue per available room (RevPAR) growth, which is expected to continue in Q2 [3]. Revenue and Occupancy Estimates - The Zacks Consensus Estimate for HST's Q2 revenues is $1.50 billion, indicating a 2.1% increase from the previous year [5]. - The estimated RevPAR for Q2 is $232.12, up from $224.29 in the same quarter last year, while the average occupancy rate is expected to decrease to 73.9% from 74.4% [5]. Interest Expenses Impact - Interest expenses for Q2 are projected to rise by 14.7% year over year, which may negatively affect HST's performance [6][7]. - The consensus estimate for AFFO per share has been revised down to 51 cents, reflecting a 10.5% decline from the previous year [6]. Earnings Prediction Model - The quantitative model does not predict a surprise in AFFO per share for HST this quarter, with an Earnings ESP of -2.39% and a Zacks Rank of 3 [7][8].

Core Insights - Hilton Worldwide Holdings Inc. (HLT) entered 2025 with steady momentum, driven by a diversified travel demand base, with system-wide RevPAR growing 2.5% year over year in Q1 2025 [2][9] - Group travel led RevPAR growth, increasing more than 6% year over year, while Business Transient and Leisure Transient also contributed positively [2][3] Company Performance - Business Transient's RevPAR rose 2% year over year, primarily from stable travel patterns of small and mid-sized companies, which constitute around 85% of the segment [3][9] - Leisure Transient's RevPAR increased by 1% year over year, showing robust activity early in the quarter but some slowdown later due to broader sentiment trends [3] - Hilton expects Group travel to remain the strongest segment for the remainder of 2025, supported by strong bookings and a healthy pipeline into 2026 [4][9] Industry Context - Peers such as Marriott International, Inc. (MAR) and Hyatt Hotels Corporation (H) are also experiencing RevPAR growth, benefiting from strong booking trends and recovery in group and business travel [5] - Marriott reported a 5.2% rise in global RevPAR in Q1 2025, while Hyatt's RevPAR increased by 5.7%, with luxury brands driving notable gains [6][7] Financial Outlook - Hilton reaffirmed its full-year system-wide RevPAR guidance of flat to up 2% for 2025, with expectations for Group and Business Transient to lead [4] - Earnings estimates for Hilton have increased to $7.91 and $9.04 per share for 2025 and 2026, respectively, indicating year-over-year growth of 11.1% for 2025 and 14.3% for 2026 [11] - Hilton's shares have risen 29.9% in the past three months, outperforming the Zacks Hotels and Motels industry, which grew by 9% [8]

Financial Data and Key Metrics Changes - The company reported a comparable RevPAR of $400, reflecting a 4.2% increase year-over-year, marking the highest quarterly RevPAR in its history [7][8] - Comparable total hotel revenue increased by 4.4% year-over-year, while comparable hotel EBITDA was $70.8 million, representing a 5.3% increase [8][14] - The net loss attributable to common stockholders was $2.5 million, or $0.04 per diluted share, with AFFO per diluted share of $0.40 [14][15] Business Line Data and Key Metrics Changes - The resort portfolio reported a comparable RevPAR of $800, a 1.9% increase year-over-year, with combined comparable hotel EBITDA of $62 million, a 2% increase [9][10] - Urban hotels achieved a comparable RevPAR growth of 11.3%, with the Capitol Hilton benefiting from the presidential inauguration, showing a 19.3% year-over-year RevPAR growth [10][11] Market Data and Key Metrics Changes - The group revenue pace for 2025 is up 7%, with continued growth projected at 10% for 2026 [11][24] - The urban portfolio's comparable total revenue increased by 10%, and comparable hotel EBITDA increased by 39% year-over-year [24] Company Strategy and Development Direction - The company successfully extended its mortgage loan secured by the Ritz Carlton Lake Tahoe, improving its maturity schedule and lowering the cost of capital [11][12] - The company is focused on strategic capital expenditures, anticipating spending between $75 million and $95 million in 2025 to enhance portfolio quality and brand alignment [29][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's resilience amid economic uncertainty, noting strong booking trends and a solid balance sheet [7][30] - The company highlighted the effectiveness of its cost control initiatives, resulting in improved hotel EBITDA margins [20][40] Other Important Information - The company redeemed approximately $90 million of its non-traded preferred stock, representing about 20% of the original capital raise [13] - The company is exploring asset sales, with increased buyer activity noted in the marketplace, particularly for upper upscale assets [52][53] Q&A Session Summary Question: Any trends in group bookings regarding cancellations or macroeconomic volatility? - Management noted that while the booking window is shortening slightly, there is no significant impact on group bookings, with Q1 group revenue up 31% year-over-year [32][33] Question: What is the company's exposure to international inbound business? - The company indicated that international inbound is a small part of the portfolio, with minimal impact observed, varying by market [34][36] Question: How does the company plan to grow EBITDA margins? - Management expressed optimism about margin growth, citing aggressive cost containment measures and productivity improvements [37][40] Question: Can you provide details on the Magnificent Mile conversion? - The conversion is expected to enhance asset value and performance, with minimal CapEx planned for public and meeting space renovations [41][42] Question: What is the status of preferred stock redemptions? - The company explained that redemptions are subject to timing and the structure of the security, with holders able to redeem after three years [46][49] Question: What is the outlook for asset sales and use of proceeds? - Management reported increased buyer activity and plans to utilize proceeds for preferred equity redemptions, share buybacks, and retiring corporate convertible notes [52][54]

Financial Data and Key Metrics Changes - For Q1 2025, normalized FFO was $10.8 million or $0.07 per share, down from $0.13 per share in the prior year quarter [24] - Adjusted EBITDAre increased slightly year over year to $115.8 million [24] - Comparable hotel RevPAR grew by 2.6% year over year, with gross operating profit margin percentage declining by 330 basis points to 21.4% [24] Business Line Data and Key Metrics Changes - Comparable hotel RevPAR growth was supported by occupancy and ADR gains, with a 10.6% increase in RevPAR for the select service portfolio, primarily driven by occupancy growth in Hyatt Place and Sonesta Select hotels [11][10] - Full service hotels reported a 1.9% increase in RevPAR, while extended stay portfolio RevPAR was essentially flat due to renovation impacts [10][11] - Adjusted hotel EBITDA for the hotel portfolio was $23 million, a decline of 20.5% year over year, primarily due to renovations and increased costs [24] Market Data and Key Metrics Changes - The lodging portfolio experienced a softening in RevPAR as the quarter progressed, influenced by reduced government and international travel [8] - Group revenue pace increased by 6.5% year over year, indicating a positive trend despite overall market challenges [35] Company Strategy and Development Direction - The company plans to sell 123 hotels in 2025 with estimated proceeds of $1.1 billion to strengthen the balance sheet and reinvest in growth opportunities [9][14] - A strategic shift towards increasing net lease exposure is anticipated, with a target to adjust the investment composition from 56% lodging assets to 54% net lease properties [16] - The company aims to optimize its portfolio through asset sales and reinvestment in high-potential hotels, while gradually expanding net lease acquisitions [12][16] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainties but expressed confidence in the resilience of the net lease portfolio and the potential for long-term value creation through portfolio optimization initiatives [16] - The company expects challenges in the travel and lodging industries to impact key segments, but anticipates a seasonal benefit in Q2 [27] Other Important Information - The company is monitoring potential impacts from tariffs on capital improvement costs and supply chain uncertainties [29] - The net lease portfolio was nearly 98% leased with a weighted average lease term of eight years, providing steady cash flow [18] Q&A Session Summary Question: Can you walk us through the RevPAR trends in the quarter? - Management indicated that RevPAR started strong in January but showed deceleration by March, with preliminary April numbers indicating a 1% year-over-year decrease [32][33] Question: What is the impact of international and government business on demand? - Approximately 30% of the portfolio is in top markets affected by international travel, with a modest decrease in government business noted [34][35] Question: How confident is the company in completing hotel sales at the expected price? - Management expressed confidence due to a robust selection process and strong buyer interest, with transactions expected to occur in phases [36][38] Question: Will the company continue to have hotel exposure in the future? - Management confirmed that while there will be a shift towards net lease properties, the company will maintain hotel exposure to drive EBITDA [41][43] Question: What is the outlook for the Sonesta stake? - The company believes the value of its 34% stake in Sonesta will grow as Sonesta transitions to a franchise model, enhancing margins [50][51]

Financial Data and Key Metrics Changes - The normalized FFO per share for Q1 2025 was $0.35, up from $0.34 in Q1 2024, representing a year-over-year increase of 2.9% [13] - The normalized AFFO per share for Q1 2025 was $0.37, compared to $0.35 in Q1 2024, indicating a year-over-year increase of 5.7% [13] - Cash rental income from the triple net portfolio totaled $90 million for the quarter, up from $89 million in Q1 2024 [13] - Cash NOI from the managed senior housing portfolio increased to $24.1 million in Q1 2025 from $19.1 million in Q1 2024, a year-over-year increase of 26.3% [14] Business Line Data and Key Metrics Changes - Skilled nursing and triple net senior housing EBITDARM rent coverage reached 2.19 and 1.41, respectively, with behavioral health coverage at 3.77, marking the highest levels since year-end 2023 [5] - Skilled occupancy increased by 80 basis points sequentially, while the skilled mix improved by 10 basis points [6] - Triple net senior housing occupancy rose by 50 basis points sequentially [7] - The same store managed senior housing portfolio's revenue grew by 6.3% year-over-year, with occupancy increasing from 82.6% in Q1 2024 to 85.4% in Q1 2025 [10] Market Data and Key Metrics Changes - The domestic portfolio occupancy was 83%, gaining 340 basis points year-over-year, while the Canadian portfolio occupancy was 90.9%, adding 140 basis points [10] - RevPAR in the same store portfolio increased by 2.8% year-over-year, with Canadian RevPAR growing by 4.9% [10] - Cash NOI growth in US communities was 14.4% year-over-year, while Canadian communities saw a 24.7% increase [11] Company Strategy and Development Direction - The company is focusing on a busy deal pipeline primarily in senior housing, with over $200 million in awarded deals expected to close this quarter, surpassing the total for all of 2024 [7][8] - The strategy includes entering new relationships with proven operators and maintaining a selective approach to acquisitions [33][56] - The company aims to balance its portfolio between senior housing and skilled nursing, emphasizing the importance of operational recovery and predictable earnings [80][86] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued occupancy growth and potential Medicaid rate increases in the summer, which could enhance coverage [90] - The company remains cautious about the skilled nursing facility (SNF) market due to ongoing uncertainties regarding Medicaid reimbursement [70] - Management believes that the current operating environment will support improved coverage for the foreseeable future, despite potential challenges [90] Other Important Information - The company declared a quarterly dividend of $0.30 per share, representing a payout of 81% of the first quarter normalized AFFO per share [18] - The net debt to adjusted EBITDA ratio improved to 5.19 times as of March 31, 2025, down from 5.27 times at the end of 2024 [16] Q&A Session Summary Question: Update on skilled nursing facility sale - Management confirmed that the expected $50 million skilled nursing facility sale is still on track, although regulatory hurdles have delayed the process [20] Question: Trajectory of RevPOR and expense growth - Management indicated that as occupancy increases, pricing power is expected to improve, leading to potential revenue growth [22][23] Question: Guidance and deal flow - Management reiterated that current acquisitions are not included in guidance until closed, maintaining a conservative approach to projections [28][29] Question: Competition in the transaction market - Management noted a robust pipeline of deals, primarily in senior housing, with private equity firms as frequent sellers [34][37] Question: Genesis exposure and NOI - Management reported that the impact of Genesis on NOI is negligible, with no missed payments and improved operations since subleasing to a trusted operator [50] Question: SNF acquisition attractiveness - Management highlighted challenges in acquiring SNFs, particularly those with financial difficulties, making them less attractive for investment [68] Question: SHOP portfolio occupancy trends - Management expects occupancy to pick up in the second quarter, particularly in Canadian assets, as seasonal factors improve [72] Question: Interest in large portfolios - Management emphasized a commitment to maintaining a simple and predictable strategy, focusing on smaller, manageable deals rather than large portfolios [80][81]