Sell Recommendation for Pebblebrook Hotel Trust Amid Unfavorable 2025 Outlook and Anticipated Revenue Challenges

In a report released today, Stephen Grambling from Morgan Stanley maintained a Sell rating on Pebblebrook Hotel (PEB – Research Report), with a price target of $11.00.

Stephen Grambling has given his Sell rating due to a combination of factors impacting Pebblebrook Hotel Trust’s future performance. Despite the company reporting a stronger-than-expected EBITDA for the fourth quarter of 2024, driven by unexpected business interruption proceeds and better revenue per available room, the outlook for 2025 appears less favorable.
The company’s guidance for the first quarter and the entire year of 2025 falls below market expectations, primarily due to anticipated headwinds from the Los Angeles wildfires, which are expected to negatively impact revenue growth and EBITDA. These challenges suggest a muted response to the stock, as the weaker outlook may not align with investor expectations, leading to the Sell recommendation.

According to TipRanks, Grambling is a 4-star analyst with an average return of 5.2% and a 61.89% success rate. Grambling covers the Consumer Cyclical sector, focusing on stocks such as Hyatt Hotels, DraftKings, and Las Vegas Sands.