Pebblebrook Hotel (PEB) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: 0.4%
• Average Volume (3M): 2.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: 2.18%
• EPS Growth: 56.00%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 65
• Industry: REIT - Hotel & Motel
• EPS (TTM): -0.37
• Shares Outstanding: 118,685,165
• 10 Day Avg. Volume: 2,144,728
• 30 Day Avg. Volume: 2,451,095
• PEG Ratio: 2.64
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $11.08
• Price Target Upside: 15.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

Pebblebrook Hotel exhibits strengths in cash flow and operational efficiencies, with a strong balance sheet and recent positive technical momentum. However, profitability challenges and a negative P/E ratio weigh on its valuation. The mixed outlook from the earnings call and economic uncertainties further create a cautious environment, resulting in a moderate overall score.

Positive Factors

Financial Performance

Pebblebrook Hotel reported 4Q EBITDA above its guidance and consensus due to better RevPAR, food and beverage revenues, and margins.

Market Outlook

There is optimism for 2025 in key markets like San Francisco and Los Angeles, with improvements anticipated in these regions.

Market Position

The recent sell-off/underperformance and discounted valuation presents an attractive entry point.

Negative Factors

Guidance and Expectations

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 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 ownership and operation of hotel properties. The company's income is derived from room bookings, food and beverage sales, and other hotel services such as event hosting and ancillary services. Revenue is influenced by factors such as occupancy rates, average daily rates, and overall demand in the hospitality sector. Pebblebrook enhances its earnings potential through strategic partnerships with major hotel brands which provide management and marketing support, as well as through capital improvements aimed at increasing property appeal and operational efficiency. Additionally, the company may engage in asset sales or refinancing activities to optimize its portfolio and capitalize on market conditions.

Pebblebrook Hotel Financial Statement Overview

Summary

Pebblebrook Hotel displays a solid recovery in revenue and cash flow, supported by a strong balance sheet with no debt. However, the company faces challenges in profitability, as indicated by negative net income and margins. While cash flows are robust and the balance sheet is stable, improving profitability and operating efficiency will be crucial for long-term financial health.

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.

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.

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.

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
	EBIT
82.15M	84.03M	37.81M	99.40M	-139.45M	-292.71M
	EBITDA
308.70M	313.13M	274.58M	238.40M	84.69M	-100.45M
	Net Income Common Stockholders
-8.84M	-4.24M	-78.02M	-84.98M	-186.37M	-392.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
208.07M	206.65M	183.75M	41.04M	58.52M	124.27M
	Total Assets
5.65B	5.69B	5.82B	6.13B	6.26B	6.08B
	Total Debt
0.00	2.57B	2.64B	2.71B	2.76B	2.54B
	Net Debt
2.36B	2.36B	2.46B	2.67B	2.70B	2.41B
	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

• Technical Analysis Sentiment: Negative
• Last Price: 9.63
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 9.63 is above the 20-day moving average (MA) of 9.48, above the 50-day MA of 9.60, and below the 200-day MA of 12.14, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 50.16 is Neutral, neither overbought nor oversold. The STOCH value of 52.83 is Neutral, 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
PK	72 Outperform	$2.16B	18.34	3.46%	9.26%	-3.68%	35.35%
DRH	71 Outperform	$1.60B	39.64	3.22%	2.20%	3.73%	-44.49%
XHR	69 Neutral	$1.20B	54.91	1.83%	4.12%	3.57%	12.66%
PEB	68 Neutral	$1.18B	―	-0.33%	0.40%	2.18%	56.00%
RLJ	64 Neutral	$1.14B	28.72	2.92%	7.33%	2.82%	-8.08%
SHO	61 Neutral	$1.77B	91.83	1.66%	4.05%	-3.90%	-89.21%
Sector *	60 Neutral	$2.82B	10.29	0.31%	8508.26%	5.91%	-17.42%

Pebblebrook Hotel Corporate Events

Pebblebrook Hotel Announces Quarterly Dividend Payments

On March 14, 2025, Pebblebrook Hotel Trust announced the declaration of quarterly cash dividends for its common and preferred shares. The dividends, which include $0.01 per common share and varying amounts for preferred shares, are payable on April 15, 2025, to shareholders of record as of March 31, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders, despite the potential risks and uncertainties in the hotel industry and broader economy.