Analyst Ari Klein from BMO Capital maintained a Hold rating on Pebblebrook Hotel (PEB – Research Report) and keeping the price target at $11.00.
Ari Klein has given his Hold rating due to a combination of factors impacting Pebblebrook Hotel’s financial outlook. The company’s first-quarter results showed mixed performance, with weaker revenue per available room (RevPAR) offset by stronger out-room spending and an EBITDA boost from reduced property taxes. Despite these positives, the overall economic environment remains uncertain, and the company has lowered its RevPAR outlook for the latter half of 2025, indicating potential challenges ahead.
Ari Klein notes that while the guidance may be conservative, the current EBITDA outlook falls below consensus expectations, suggesting potential difficulties if demand weakens. The first-quarter adjusted funds from operations exceeded expectations, but comparable RevPAR remained flat and below estimates, affected by external factors like the recent LA fires. The adjusted EBITDA was higher than anticipated, primarily due to lower property taxes, but the outlook for 2025 has been adjusted downward, reflecting increased macroeconomic uncertainty.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PEB in relation to earlier this year.