Pebblebrook Hotel: Strong Q4 Performance and Strategic Positioning Drive Buy Rating

Raymond James analyst RJ Milligan upgraded the rating on Pebblebrook Hotel (PEB – Research Report) to a Buy today, setting a price target of $14.00.

RJ Milligan has given his Buy rating due to a combination of factors indicating an improving outlook for Pebblebrook Hotel’s stock. The company reported a strong fourth-quarter performance, surpassing expectations with higher same-property revenues and EBITDA, driven by robust leisure and group segments. Additionally, Pebblebrook’s guidance for 2025 RevPAR growth is slightly ahead of its peers, despite the negative impact from the Los Angeles fires, suggesting resilience and potential for future growth.
Furthermore, Pebblebrook’s shares are currently trading at a significant discount to their net asset value, presenting an attractive entry point for investors. The stock’s valuation is appealing, with a notable discount compared to the broader REIT sector, which has seen gains. Milligan’s price target of $14 reflects confidence in the company’s ability to capitalize on its strategic positioning in key markets like San Francisco and Washington D.C., as well as its potential to outperform in the coming years.