Pebblebrook Hotel (PEB) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 0.37%
• Average Volume (3M): 1.81M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 0.99%
• EPS Growth: -360.58%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.37
• Shares Outstanding: 113,595,630
• 10 Day Avg. Volume: 1,633,109
• 30 Day Avg. Volume: 1,808,402
• PEG Ratio: 6.59
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 5.90
• Enterprise Value/Market Cap: 3.12
• Enterprise Value/Revenue: 2.61
• Enterprise Value/Gross Profit: 11.00
• Enterprise Value/Ebitda: 16.01
• 1Y Price Target: $12.13
• Price Target Upside: 12.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): -0.7
• Revenue Forecast (FY): $1.47B

• Rating: 54 Neutral
• Price Target: $11.00 ▲(2.42% Upside)

Pebblebrook Hotel's overall score is driven by financial challenges, including declining revenues and profitability issues, despite positive cash flow trends. Technical indicators suggest bearish momentum. The earnings call and corporate events provide some optimism with strong operational performance and strategic financial management.

Positive Factors

Cash Flow Generation

Strong cash flow growth indicates efficient operations and provides financial flexibility to manage debt and invest in growth opportunities.

Operational Efficiency

Effective cost management enhances profitability and allows the company to maintain competitiveness in the hospitality market.

Strategic Asset Management

Selling non-core assets to reduce debt improves balance sheet health and allows focus on high-performing properties.

Negative Factors

Declining Revenue

Significant revenue decline challenges profitability and may hinder the company's ability to invest in growth and innovation.

Profitability Issues

Negative return on equity suggests inefficiency in generating profits from shareholders' investments, impacting long-term growth.

Market Weakness

Weak performance in key markets like Washington, D.C. may limit revenue growth and affect overall market positioning.

Pebblebrook Hotel Business Overview & Revenue Model

Company Description

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (REIT) and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 53 hotels, totaling approximately 13,200 guestrooms across 14 urban and resort markets, with a focus on the west coast gateway cities.

How the Company Makes Money

Pebblebrook Hotel Trust generates revenue primarily through the operation of its hotel properties, which include room rentals, food and beverage services, and ancillary offerings such as meeting and event spaces. The company's key revenue streams stem from its rental income derived from guests staying at its hotels, as well as income from on-site restaurants, bars, and event services. Additionally, Pebblebrook may earn management fees from its properties and benefit from partnerships with hotel management companies that operate the hotels on its behalf. The company's revenue can also be influenced by factors such as occupancy rates, average daily rates (ADR), and seasonal demand, as well as its strategic acquisitions and asset management practices that enhance property values and operational efficiency.

Pebblebrook Hotel Financial Statement Overview

Summary

Pebblebrook Hotel's financial performance is mixed. While there is slight revenue growth, profitability is a concern with a negative net profit margin and declining gross profit margin. The balance sheet shows high leverage, which poses risks, but cash flow generation is improving, providing some cushion.

Income Statement

Pebblebrook Hotel's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 0.71%, but the company is struggling with profitability, as evidenced by a negative net profit margin of -1.48%. The gross profit margin has decreased to 20.27% from 25.19% in the previous annual report, indicating rising costs or pricing pressures. The EBIT and EBITDA margins have also declined, suggesting challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a stable but leveraged position. The debt-to-equity ratio is slightly above 1, indicating high leverage, which could pose risks if interest rates rise. However, the equity ratio remains healthy, and the company has managed to maintain a stable asset base. Return on equity is negative, reflecting ongoing profitability challenges.

Cash Flow

Cash flow analysis shows some positive trends. The free cash flow has grown by 26.02% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 3.35, suggesting efficient cash conversion. However, the reliance on free cash flow to cover net income highlights the need for improved profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.45B	1.42B	1.39B	733.04M	442.89M
Gross Profit	347.65M	366.12M	354.27M	382.28M	124.79M	-50.87M
EBITDA	239.00M	306.40M	274.58M	238.40M	124.83M	-74.93M
Net Income	-98.44M	-4.24M	-78.02M	-87.17M	-184.86M	-391.73M
Balance Sheet
Total Assets	5.55B	5.69B	5.82B	6.13B	6.26B	6.08B
Cash, Cash Equivalents and Short-Term Investments	223.16M	206.65M	183.75M	41.04M	58.52M	124.27M
Total Debt	2.57B	2.57B	2.64B	2.71B	2.76B	2.79B
Total Liabilities	2.95B	2.91B	2.97B	3.05B	3.10B	2.81B
Stockholders Equity	2.51B	2.70B	2.76B	3.00B	3.16B	3.26B
Cash Flow
Free Cash Flow	370.38M	275.00M	236.20M	162.00M	-13.06M	-326.79M
Operating Cash Flow	287.70M	275.00M	236.20M	278.75M	70.77M	-201.78M
Investing Cash Flow	-78.92M	-92.83M	142.02M	-109.39M	-81.57M	250.12M
Financing Cash Flow	-120.93M	-158.22M	-236.85M	-209.34M	-33.25M	31.08M

Pebblebrook Hotel Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEB, the sentiment is Negative. The current price of 10.74 is below the 20-day moving average (MA) of 11.06, below the 50-day MA of 10.90, and above the 200-day MA of 10.37, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.06 is Neutral, neither overbought nor oversold. The STOCH value of 14.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PEB.

Pebblebrook Hotel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DRH	65 Neutral	$1.79B	33.52	3.98%	5.41%	0.95%	-8.40%
RLJ	65 Neutral	$1.10B	150.10	1.49%	8.31%	-0.58%	-83.32%
APLE	64 Neutral	$2.75B	15.80	5.41%	8.81%	0.57%	-13.58%
XHR	64 Neutral	$1.28B	24.11	4.58%	3.99%	4.29%	141.01%
SHO	58 Neutral	$1.80B	1,890.00	0.88%	4.04%	3.04%	-98.77%
PEB	54 Neutral	$1.22B	―	-3.74%	0.37%	0.99%	-360.58%

Pebblebrook Hotel Corporate Events

Pebblebrook Hotel Completes Sale of Chicago Property

On December 3, 2025, Pebblebrook Hotel Trust completed the sale of the 752-room Westin Michigan Avenue Chicago for $72.0 million. The proceeds from this sale will be used to reduce outstanding debt and preferred equity, repurchase common shares, and support other capital allocation priorities. This transaction, along with a previous sale, has allowed the company to reduce its debt by $100 million. Despite the sale, Pebblebrook’s updated fourth-quarter and full-year 2025 outlook remains largely unchanged, as the reduction in interest expenses is expected to offset the loss of hotel-level EBITDA.

Pebblebrook Hotel Sells Montrose at Beverly Hills

On November 19, 2025, Pebblebrook Hotel Trust completed the sale of the 133-room Montrose at Beverly Hills in West Hollywood, California, for $44.25 million. The proceeds from this sale are intended for general corporate purposes, such as reducing outstanding debt, repurchasing shares, and supporting other capital allocation priorities to enhance long-term shareholder value. This transaction is not expected to affect the company’s current fourth-quarter or full-year 2025 outlook. Additionally, Pebblebrook has another hotel under contract for sale at $72 million, expected to close in the fourth quarter, subject to customary conditions.

Pebblebrook Hotel Announces New Share Buyback Program

On October 21, 2025, Pebblebrook Hotel‘s Board authorized a new share repurchase program of up to $150 million, terminating the previous program. This initiative allows the company to buy back shares at its discretion, based on various market and economic factors, without a set expiration date, potentially impacting the company’s stock value and shareholder returns.

Pebblebrook Hotel Announces $400M Convertible Notes Offering

On September 16, 2025, Pebblebrook Hotel Trust announced a private offering of $400 million in 1.625% Convertible Senior Notes due 2030, which closed on September 18, 2025. The proceeds were used to repurchase $400 million of its 1.75% Convertible Senior Notes due 2026 and approximately 4.3 million common shares. This strategic financial maneuver aims to manage the company’s debt profile and potentially reduce dilution of common shares, enhancing its market positioning and financial flexibility.

Pebblebrook Hotel Declares Cash Dividends for Q3 2025

On September 15, 2025, Pebblebrook Hotel Trust announced that its Board of Trustees has authorized and declared cash dividends for its common and preferred shares for the quarter ending September 30, 2025. The dividends, which include $0.01 per common share and varying amounts for preferred shares, are set to be paid on October 15, 2025, to shareholders of record as of September 30, 2025. This decision reflects the company’s ongoing commitment to providing returns to its shareholders and may impact its financial strategy and market positioning.