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Pebblebrook Hotel (PEB)
NYSE:PEB
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Pebblebrook Hotel (PEB) AI Stock Analysis

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PEB

Pebblebrook Hotel

(NYSE:PEB)

Rating:57Neutral
Price Target:
$10.50
▼(-10.94% Downside)
Pebblebrook Hotel's overall stock score reflects a mixed financial performance with profitability challenges and high leverage. Technical analysis provides a slightly positive outlook, while the earnings call offers cautious optimism. The valuation is a concern due to the negative P/E ratio, but the high dividend yield is a positive aspect. Corporate events show a commitment to shareholder returns.
Positive Factors
Financial Performance
PEB delivered a solid Q2 with EBITDA/FFO upside.
Revenue Performance
April RevPAR increased by 5.7%, indicating some resilience in the company's revenue performance.
Negative Factors
Guidance
Guidance was more of a mixed bag, with 3Q's -2.5% RevPAR decline below expectations.
Macroeconomic Concerns
The backdrop is increasingly uncertain, with guidance lowered for 2025 due to macroeconomic concerns.

Pebblebrook Hotel (PEB) vs. SPDR S&P 500 ETF (SPY)

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 Trust generates revenue primarily through the leasing of its hotel properties to established hotel operators who manage the day-to-day operations of the hotels. The company earns rental income, which is a significant portion of its revenue. Additionally, Pebblebrook benefits from hotel management fees, which are charged based on the hotel's performance, including revenue from room bookings, food and beverage sales, and other ancillary services. The company may also realize income from property sales and redevelopment projects that enhance the value of its hotel assets. Strategic partnerships with hotel brands and operators play a crucial role in maximizing occupancy rates and optimizing revenue generation across its portfolio.

Pebblebrook Hotel Earnings Call Summary

Earnings Call Date:Jul 29, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive aspects, including strong adjusted EBITDA performance, significant market recovery in San Francisco, and effective expense management. However, challenges in the Los Angeles market, leisure pricing pressure, and macroeconomic uncertainties were noted. The overall sentiment is cautiously optimistic, with a strong outlook for 2026.
Q2-2025 Updates
Positive Updates
Strong Adjusted EBITDA Performance
Adjusted EBITDA was $117 million, $6.5 million above the midpoint of expectations, reflecting solid hotel EBITDA results and strong performance from Newport Harbor Island Resort and LaPlaya's insurance claims.
San Francisco Market Recovery
San Francisco led the portfolio with RevPAR climbing 15.2%, supported by a stronger convention calendar, robust growth in business group and transient demand, and increasing occupancy.
Redeveloped Properties Outperformance
Redeveloped properties like Newport Harbor Island Resort, Estancia, and Southernmost Resort in Key West gained market share and delivered meaningful growth, with Newport expected to generate over $15 million in EBITDA for 2025.
Expense Management Success
Same-property hotel expenses, excluding fixed costs, rose just 1.7% year-over-year, with energy costs down 2.1%, reflecting strong cost control and efficiency improvements.
Favorable Insurance Renewal
Property insurance renewal resulted in a 10% premium reduction and a 13% rate drop, lowering near-term expenses.
Positive Outlook for 2026
Group room nights up nearly 9%, ADR ahead by almost 4%, and group revenues up by 13.1% for 2026, indicating strong future performance.
Negative Updates
Los Angeles Market Challenges
Los Angeles faced a $2.2 million EBITDA headwind, due to post-fire demand slowdown and negative media coverage affecting perceptions of safety.
Leisure Pricing Pressure
Shortening booking windows for leisure travel are putting pressure on rates, reducing forward visibility.
Weaker Group Demand
Group demand was down due to reduced government travel, weaker international participation, and increased attrition, continuing into July.
Macro Uncertainty Impact
Continuing macroeconomic uncertainty and policy disruptions are impacting demand growth outlook, particularly for Q3.
Company Guidance
During the Pebblebrook Hotel Trust's second quarter 2025 earnings call, Raymond Martz, Co-President and CFO, highlighted the company's financial performance and provided forward-looking guidance. Same-property hotel EBITDA for the quarter was $115.8 million, surpassing the midpoint by $1.8 million, despite a $2.2 million EBITDA headwind from Los Angeles. The portfolio's adjusted EBITDA reached $117 million, $6.5 million above the midpoint, and adjusted FFO per share was $0.65, exceeding expectations by $0.06. Same-property RevPAR increased by 1.3% year-over-year, with urban portfolio RevPAR improving by 1.7%. San Francisco led with a 15.2% RevPAR growth, driven by a 9-point occupancy rise. The company also reported a successful property insurance renewal, reducing premiums by 10%. Looking ahead, Pebblebrook anticipates challenges in the macroeconomic environment but remains optimistic about 2026, with group revenues expected to rise by 13.1% and total revenue pace up by 19%.

Pebblebrook Hotel Financial Statement Overview

Summary
Pebblebrook Hotel's financial performance is mixed. While there is modest revenue growth and improving cash flow, profitability remains a concern with negative net income and high leverage.
Income Statement
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.47B1.45B1.42B1.39B733.04M442.89M
Gross Profit297.97M366.12M354.27M382.28M124.79M-50.87M
EBITDA255.20M313.13M274.58M337.94M84.69M-100.45M
Net Income-21.72M-4.24M-78.02M-87.22M-184.91M-392.59M
Balance Sheet
Total Assets5.65B5.69B5.82B6.13B6.26B6.08B
Cash, Cash Equivalents and Short-Term Investments256.13M206.65M183.75M41.04M58.52M124.27M
Total Debt2.66B2.57B2.64B2.71B2.76B2.58B
Total Liabilities2.92B2.91B2.97B3.05B3.10B2.81B
Stockholders Equity2.64B2.70B2.76B3.00B3.16B3.26B
Cash Flow
Free Cash Flow414.39M275.00M236.20M162.00M-13.06M-326.79M
Operating Cash Flow331.70M275.00M236.20M278.75M70.77M-201.78M
Investing Cash Flow-78.63M-92.83M142.02M-109.39M-81.57M250.12M
Financing Cash Flow-51.62M-158.22M-236.85M-209.34M-33.25M31.08M

Pebblebrook Hotel Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.79
Price Trends
50DMA
10.44
Positive
100DMA
9.87
Positive
200DMA
11.14
Positive
Market Momentum
MACD
0.40
Negative
RSI
71.16
Negative
STOCH
92.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEB, the sentiment is Positive. The current price of 11.79 is above the 20-day moving average (MA) of 10.55, above the 50-day MA of 10.44, and above the 200-day MA of 11.14, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 71.16 is Negative, neither overbought nor oversold. The STOCH value of 92.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.40B23.065.00%3.55%4.81%185.08%
66
Neutral
$1.82B450.700.96%3.75%0.37%-97.38%
63
Neutral
$7.02B13.41-0.50%6.86%4.08%-25.24%
62
Neutral
$2.42B45.721.58%11.67%-3.19%-81.33%
61
Neutral
$1.77B30.964.22%4.90%1.72%-3.49%
59
Neutral
$1.19B37.252.53%7.61%1.42%-20.13%
57
Neutral
$1.40B-0.81%0.34%2.00%50.70%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PEB
Pebblebrook Hotel
11.79
-0.70
-5.60%
DRH
Diamondrock
8.58
0.67
8.47%
SHO
Sunstone Hotel
9.56
0.08
0.84%
RLJ
RLJ Lodging
7.88
-0.46
-5.52%
XHR
Xenia Hotels & Resorts
14.41
1.61
12.58%
PK
Park Hotels & Resorts
12.00
-0.62
-4.91%

Pebblebrook Hotel Corporate Events

Financial Disclosures
Pebblebrook Hotel Announces Upcoming Financial Results Release
Neutral
Sep 2, 2025

Pebblebrook Hotel Trust announced on September 2, 2025, that it will release its financial and operating results for the quarter ending September 30, 2025, on November 5, 2025, after market close. The company will hold a conference call on November 6, 2025, to discuss these results, which may provide insights into its operational performance and market positioning.

Financial Disclosures
Pebblebrook Hotel to Announce Q2 2025 Results Soon
Neutral
Jul 1, 2025

Pebblebrook Hotel Trust announced on July 1, 2025, that it will release its financial and operating results for the quarter ended June 30, 2025, on July 29, 2025, after the market closes. The company will hold a conference call to discuss these results on July 30, 2025, at 9:00 AM ET, providing stakeholders with insights into its financial performance and operational strategies.

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.

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.Date of analysis: Aug 23, 2025