Pebblebrook Hotel (PEB) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: 0.35%
• Average Volume (3M): 2.82M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 2.00%
• EPS Growth: 50.70%
• Country: US
• Employees: 60
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.06
• Shares Outstanding: 118,574,300
• 10 Day Avg. Volume: 4,492,232
• 30 Day Avg. Volume: 2,817,162
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.67
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 12.19
• Enterprise Value/Ebitda: 14.23
• 1Y Price Target: $11.79
• Price Target Upside: 2.79% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 57 Neutral
• Price Target: $10.50 ▼(-8.46% 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

Revenue Growth

The increase in same-property RevPAR indicates a positive trend in revenue generation, suggesting effective strategies in capturing market demand and improving occupancy rates.

Expense Management

Effective expense management, with minimal increase in costs, enhances profitability potential and demonstrates operational efficiency, which is crucial for long-term sustainability.

Insurance Cost Reduction

The reduction in insurance premiums lowers operational costs, contributing to improved margins and financial health, which supports long-term profitability.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially affecting the company's ability to invest in growth opportunities and maintain financial stability.

Profitability Challenges

Ongoing profitability challenges, as indicated by a negative net profit margin, can hinder the company's ability to reinvest in its business and provide returns to shareholders.

Macro Uncertainty Impact

Macroeconomic uncertainties can affect demand and revenue growth, posing risks to the company's operational performance and strategic planning in the medium term.

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 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 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

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	1.47B	1.45B	1.42B	1.39B	733.04M	442.89M
Gross Profit	297.97M	366.12M	354.27M	382.28M	124.79M	-50.87M
EBITDA	255.20M	313.13M	274.58M	337.94M	84.69M	-100.45M
Net Income	-21.72M	-4.24M	-78.02M	-87.22M	-184.91M	-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	256.13M	206.65M	183.75M	41.04M	58.52M	124.27M
Total Debt	2.66B	2.57B	2.64B	2.71B	2.76B	2.58B
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	414.39M	275.00M	236.20M	162.00M	-13.06M	-326.79M
Operating Cash Flow	331.70M	275.00M	236.20M	278.75M	70.77M	-201.78M
Investing Cash Flow	-78.63M	-92.83M	142.02M	-109.39M	-81.57M	250.12M
Financing Cash Flow	-51.62M	-158.22M	-236.85M	-209.34M	-33.25M	31.08M

Pebblebrook Hotel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.47
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 11.47 is below the 20-day moving average (MA) of 11.59, above the 50-day MA of 10.78, and above the 200-day MA of 11.00, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 18.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PEB.

Pebblebrook Hotel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
XHR	71 Outperform	1.38B	22.43	5.18%	3.62%	4.81%	185.08%
APLE	71 Outperform	2.85B	15.87	5.66%	8.40%	2.42%	-13.51%
RLJ	63 Neutral	1.13B	35.20	2.98%	8.06%	1.42%	-20.13%
DRH	63 Neutral	1.67B	28.94	4.15%	5.19%	1.72%	-3.49%
SHO	63 Neutral	1.83B	444.13	1.02%	3.73%	0.37%	-97.38%
PEB	57 Neutral	$1.36B	―	-0.81%	0.35%	2.00%	50.70%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Pebblebrook Hotel Corporate Events

Pebblebrook Hotel Announces Upcoming Financial Results Release

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.

Pebblebrook Hotel to Announce Q2 2025 Results Soon

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.

Pebblebrook Hotel Declares Q2 2025 Cash Dividends

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.