Pebblebrook Hotel Trust(US:PEB)2025-11-06 16:00Portfolio Repositioning - Pebblebrook has strategically shifted its portfolio towards leisure-oriented and group-focused properties, reducing exposure to urban and corporate transient markets since 2019[15] - Resort EBITDA contribution increased from 17% to 47%, while Urban EBITDA contribution decreased from 83% to 53%[19] - The company acquired 5 upper upscale and luxury resorts for $802 million and sold 15 lower-quality urban properties for $12 billion[19] - East Coast properties now contribute 56% of EBITDA, up from 38%, while San Francisco's EBITDA contribution declined by 18%, and West Coast properties now contribute 40% of EBITDA, down from 56%[19] Financial Performance and Growth Opportunities - The company estimates a Hotel EBITDA upside of approximately $71 million, with $16 million from urban markets recovery, $45 million from ROI redevelopment projects, and $10 million from LaPlaya EBITDA growth opportunity[11, 23] - The company anticipates a potential $45+ million increase in its Urban Hotel EBITDA over the next three to four years, supported by a favorable long-term outlook[35] - Approximately $278 million of ROI capital invested is estimated to generate annual stabilized EBITDA gains of $29 to $33 million[11, 44] - LaPlaya Beach Resort & Club generated $19 million of hotel EBITDA in 2024 and is forecasting $25 million for 2025[51] Valuation and Financing - Pebblebrook's recent public market valuation reflects an approximate 55% discount to its recently calculated private market valuation of $2350 per share[11, 54, 57] - The company completed a $400 million private offering of 2030 1625% Convertible Notes, using proceeds to retire an equal amount of its 2026 175% Convertible Notes at a 2% discount to par[61, 62] - Approximately 43 million common shares were repurchased at $1156/share, increasing the effective all-in equity conversion price to $2443/share[62, 64]