BMO Capital analyst Ari Klein maintained a Hold rating on Pebblebrook Hotel today and set a price target of $11.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Ari Klein has given his Hold rating due to a combination of factors influencing Pebblebrook Hotel’s performance. The company reported a strong second quarter with better-than-expected EBITDA and FFO, indicating effective cost management and positive trends in certain markets like San Francisco. However, the performance of resorts was weaker, and the guidance for the third quarter showed a decline in RevPAR, which was below expectations, while the fourth quarter’s optimistic RevPAR growth might be challenging to achieve.
Despite the adjusted FFO beating consensus estimates and RevPAR growth slightly exceeding expectations, there were notable headwinds, particularly in Los Angeles, affecting leisure and business travel. The adjusted EBITDA also surpassed expectations, driven by higher food and beverage and other income. Nonetheless, the narrowed RevPAR growth range and mixed guidance suggest a cautious outlook, justifying the Hold rating.