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Pebblebrook Hotel (PEB)
NYSE:PEB
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Pebblebrook Hotel
(NYSE:PEB)
Rating:64Neutral
Price Target:
$10.00
▼(-3.19%Downside)
Positive Factors
Financial Performance
1Q25 adjusted FFO of $0.16 beat consensus estimates, driven by lower property taxes.
Revenue Performance
April RevPAR increased by 5.7%, indicating some resilience in the company's revenue performance.
Valuation
The recent sell-off/underperformance and discounted valuation presents an attractive entry point.
Negative Factors
Guidance
The company's 2025 guidance missed consensus expectations.
Macroeconomic Concerns
The backdrop is increasingly uncertain, with guidance lowered for 2025 due to macroeconomic concerns.
Operational Challenges
Pebblebrook Hotel faces multiple headwinds including reduced demand post the LA wildfires and higher expenses.
Pebblebrook Hotel (PEB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.19B
Dividend Yield0.4%
Average Volume (3M)2.17M
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth2.18%
EPS Growth56.00%
CountryUS
Employees60
SectorReal Estate
Sector Strength59
IndustryREIT - Hotel & Motel
Share Statistics
EPS (TTM)-0.37
Shares Outstanding118,685,165
10 Day Avg. Volume2,511,370
30 Day Avg. Volume2,173,726
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)0.97
Price to Sales (P/S)0.00
P/FCF Ratio8.87
Enterprise Value/Market Cap3.71
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit14.57
Enterprise Value/Ebitda3.70
Forecast
1Y Price Target
$10.09Price Target Upside-2.32% Downside
Rating ConsensusHold
Number of Analyst Covering9
Pebblebrook Hotel Business Overview & Revenue Model
Company DescriptionPebblebrook 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 MoneyPebblebrook Hotel makes money primarily through the ownership and management of hotel properties. The company earns revenue through room rentals, food and beverage sales, and other hospitality services provided at its hotels. Additional income is generated from meeting and event spaces, spa services, and parking facilities. Pebblebrook also benefits from strategic partnerships with major hotel brands, which help in attracting a steady stream of guests and maintaining high occupancy rates. The company leverages its expertise in hotel operations and strategic asset management to maximize revenue through effective pricing strategies, cost control, and value enhancement initiatives across its portfolio.
Pebblebrook Hotel Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 13.14%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong performance in several key markets and operational efficiencies, but also highlighted significant challenges such as the impact of the LA wildfires and softening demand due to economic uncertainties. While the first quarter exceeded expectations, the outlook for the second half of the year is cautious.Q1-2025 Updates
Positive Updates
Strong Portfolio Performance
The company exceeded expectations for Q1 2025, with strong occupancy gains and elevated ancillary revenue at resorts. Same-property hotel EBITDA totaled $62.3 million, surpassing the midpoint of their outlook by $4.3 million.
Significant Recovery in Key Markets
Washington DC delivered a 14.7% RevPAR increase, while San Francisco saw a 13% increase, driven by business group and transient travel. Portland and Chicago also showed strong results with RevPAR growth of 7.5% and 7.1% respectively.
Operational Efficiencies and Cost Control
Hotel expenses rose only 3.7% year-over-year, significantly below the low end of the expense growth outlook, due to operating efficiencies and cost control measures.
Robust Cash Position
The company maintains a strong balance sheet with $218 million in cash and over $640 million of available capacity on their unsecured revolver.
La Playa's Outstanding Recovery
La Playa in Naples saw a 22% RevPAR surge and nearly 30% increase in hotel EBITDA year-over-year, with business interruption income for the quarter exceeding expectations.
Negative Updates
Impact of Los Angeles Wildfires
The LA market was heavily impacted by wildfires, with a RevPAR decline of 23.4% and a significant EBITDA reduction of 72.6% compared to last year.
Softening Demand in March
March experienced an uptick in travel cancellations and softening demand, particularly from government, Canadian, and international segments.
Challenges with International Inbound Travel
International inbound travel declined by 10% in March, with potential negative impacts from US government policies and rhetoric.
Reduced Full-Year Outlook
The company revised their full-year outlook downward amid economic uncertainties and expected demand slowdown in the second half of 2025.
Company Guidance
During the first quarter of 2025, the company's financial performance surpassed expectations, despite economic challenges and wildfires in Los Angeles. Key metrics included same-property hotel EBITDA at $62.3 million, exceeding the outlook midpoint by $4.3 million, and adjusted EBITDA at $56.6 million, which was $4.1 million above the midpoint. Adjusted FFO reached $0.16 per share, also above the forecast. Portfolio-wide efficiency improvements and cost reductions played a significant role in this outperformance. Although same-property hotel RevPAR was at the low end of the outlook, the company's resorts experienced strong performance with a 2.1% increase in total RevPAR and an 8.2% rise at resorts. Washington DC and San Francisco showed notable RevPAR growth of 14.7% and 13%, respectively, while La Playa in Naples recorded a 22% surge in total RevPAR, highlighting the strength and resilience of the portfolio. Despite some softening in March, particularly from government and international travel, the company remains cautious about the second half of the year due to broader economic uncertainties, adjusting its full-year guidance accordingly.Pebblebrook Hotel Financial Statement Overview
Summary
Pebblebrook Hotel shows recovery in revenue and strong cash flow with no debt, but struggles with profitability due to negative net income and margins.Income Statement
Pebblebrook Hotel has shown a recovery in revenue from the pandemic lows, with a moderate revenue growth rate of 2.35% from 2023 to 2024. However, profitability remains a challenge as indicated by the negative net profit margin of -3.22% in 2024 and a declining EBIT margin, despite a positive EBITDA margin of 6.60%. This mixed performance highlights a need for improved cost management and profitability enhancement.62
Positive
Balance Sheet
The company has a strong balance sheet, evidenced by a lack of total debt and a healthy equity ratio of 47.37% in 2024. The return on equity remains negative due to net losses, but the absence of debt significantly reduces financial risk. The increase in cash reserves and overall equity strength provide stability, although improved profitability is necessary for better ROE.70
Positive
Cash Flow
Pebblebrook Hotel's cash flow is robust, with stable operating cash flow and a significant free cash flow increase from 2023 to 2024. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to accounting profits. The free cash flow to net income ratio is favorable, suggesting solid cash management despite net losses.75
Positive
| 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 | 303.00M | 366.12M | 354.27M | 382.28M | 124.79M | -50.87M |
| EBITDA | 308.70M | 313.13M | 274.58M | 238.40M | 84.69M | -100.45M |
| Net Income | -8.84M | -4.24M | -78.02M | -84.98M | -186.37M | -392.59M |
Balance Sheet | ||||||
| Total Assets | 5.65B | 5.69B | 5.82B | 6.13B | 6.26B | 6.08B |
| Cash, Cash Equivalents and Short-Term Investments | 208.07M | 206.65M | 183.75M | 41.04M | 58.52M | 124.27M |
| Total Debt | 0.00 | 2.57B | 2.64B | 2.71B | 2.76B | 2.54B |
| Total Liabilities | 2.92B | 2.91B | 2.97B | 3.05B | 3.10B | 2.81B |
| Stockholders Equity | 2.64B | 2.70B | 2.76B | 3.00B | 3.16B | 3.26B |
Cash Flow | ||||||
| Free Cash Flow | 328.82M | 275.00M | 236.20M | 162.00M | -13.06M | -326.79M |
| Operating Cash Flow | 279.34M | 275.00M | 236.20M | 278.75M | 70.77M | -201.78M |
| Investing Cash Flow | -75.18M | -92.83M | 142.02M | -109.39M | -81.57M | 250.12M |
| Financing Cash Flow | -50.95M | -158.22M | -236.85M | -209.34M | -33.25M | 31.08M |
Pebblebrook Hotel Technical Analysis
Neutral
10.33
Price Trends
9.39
Positive
10.13
Negative
11.69
Negative
Market Momentum
0.11
Negative
59.81
Neutral
89.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEB, the sentiment is Neutral. The current price of 10.33 is above the 20-day moving average (MA) of 9.50, above the 50-day MA of 9.39, and below the 200-day MA of 11.69, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 59.81 is Neutral, neither overbought nor oversold. The STOCH value of 89.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PEB.
Pebblebrook Hotel Risk Analysis
Pebblebrook Hotel disclosed 74 risk factors in its most recent earnings report. Pebblebrook Hotel reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pebblebrook Hotel Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.26B | 57.10 | 1.83% | 4.38% | 3.57% | 12.66% | |
69 Neutral | $2.13B | 17.95 | 3.46% | 9.78% | -3.68% | 35.35% | |
66 Neutral | $1.61B | 39.43 | 3.22% | 4.11% | 3.73% | -44.49% | |
64 Neutral | $1.19B | ― | -0.33% | 0.40% | 2.18% | 56.00% | |
64 Neutral | $1.14B | 28.72 | 2.92% | 8.00% | 2.82% | -8.08% | |
61 Neutral | $1.77B | 92.24 | 1.66% | 4.04% | -3.90% | -89.21% | |
61 Neutral | AU$2.83B | 8.12 | 4.17% | 5.13% | 17.25% | 41.52% |
* Real Estate Sector Average
Performance Comparison
PEB
Pebblebrook Hotel
10.33
-2.68
-20.60%
DRH
Diamondrock
7.87
0.02
0.25%
SHO
Sunstone Hotel
8.84
-0.88
-9.05%
RLJ
RLJ Lodging
7.49
-1.25
-14.30%
XHR
Xenia Hotels & Resorts
13.01
-0.36
-2.69%
PK
Park Hotels & Resorts
10.65
-2.43
-18.58%
Pebblebrook Hotel Corporate Events
Dividends
Pebblebrook Hotel Declares Q2 2025 Cash Dividends
Positive
Jun 16, 2025
On June 16, 2025, Pebblebrook Hotel Trust announced that its Board of Trustees authorized and declared cash dividends for its common and preferred shares for the second quarter of 2025. The dividends, which include $0.01 per common share and varying amounts for different series of preferred shares, are scheduled to be paid on July 15, 2025, to shareholders of record as of June 30, 2025. This announcement reflects Pebblebrook’s ongoing commitment to returning value to its shareholders, despite the potential risks and uncertainties in the hotel industry and broader economy.
The most recent analyst rating on (PEB) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Pebblebrook Hotel stock, see the PEB Stock Forecast page.
Shareholder MeetingsBusiness Operations and Strategy
Pebblebrook Hotel Shareholders Approve Equity Plan Amendment
Neutral
May 23, 2025
On May 23, 2025, Pebblebrook Hotel Trust shareholders approved an amendment to the company’s 2009 Equity Incentive Plan, increasing the number of shares available for equity-based awards by 3,000,000 and extending the award period until June 30, 2036. During the 2025 Annual Meeting, shareholders also voted on the election of trustees, ratification of KPMG LLP as independent accountants, executive compensation, and the amendment to the Equity Incentive Plan, reflecting strategic moves to enhance corporate governance and stakeholder engagement.
The most recent analyst rating on (PEB) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Pebblebrook Hotel stock, see the PEB Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.