Pebblebrook Hotel (PEB) AI Stock Analysis

• Market Cap: $1.22B
• Dividend Yield: 0.38%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• 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: 118,574,300
• 10 Day Avg. Volume: 1,927,489
• 30 Day Avg. Volume: 2,738,983
• 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: 2.98
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 14.93
• Enterprise Value/Ebitda: 18.52
• 1Y Price Target: $12.00
• Price Target Upside: 13.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $10.50 ▼(-0.38% Downside)

Pebblebrook Hotel's overall stock score reflects a challenging financial environment with mixed results. The most significant factor is the financial performance, which shows profitability concerns and high leverage. Technical analysis indicates bearish momentum, while the valuation is unattractive due to a negative P/E ratio. The earnings call provided some positive insights, highlighting strong operational performance and an optimistic outlook for 2026.

Positive Factors

Cash Flow Improvement

Improved cash flow generation enhances financial flexibility, allowing the company to manage debt maturities and invest in growth opportunities.

Operational Efficiency

Efficient cost management supports margin sustainability, enabling the company to maintain profitability even in challenging market conditions.

Redevelopment Program Success

Successful redevelopment projects enhance property value and revenue potential, strengthening the company's competitive position in key markets.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in a rising interest rate environment, potentially impacting long-term stability.

Profitability Concerns

Ongoing profitability issues may hinder the company's ability to reinvest in growth and meet financial obligations, affecting long-term viability.

Decline in ADR and RevPAR

Decreasing room rates and revenue per available room indicate pricing pressures, which could impact revenue growth and profitability over time.

Pebblebrook Hotel Business Overview & Revenue Model

Company Description

Pebblebrook Hotel Trust (PEB) is a real estate investment trust (REIT) that focuses on the acquisition, ownership, and redevelopment of upscale and luxury hotels in urban markets across the United States. The company primarily invests in boutique and lifestyle hotels, catering to both leisure and business travelers. Pebblebrook's portfolio includes properties operated under various well-known brands, providing guests with high-quality accommodations and services.

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 revenue growth is modest, profitability is a concern with a negative net profit margin and declining gross profit margin. The balance sheet shows high leverage, which could limit financial flexibility, but cash flow generation is improving, providing some cushion against operational challenges.

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	243.38M	366.12M	354.27M	382.28M	124.79M	-50.87M
EBITDA	196.12M	313.13M	274.58M	337.94M	84.69M	-100.45M
Net Income	-108.74M	-4.24M	-78.02M	-87.22M	-184.91M	-392.59M
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	0.00	2.57B	2.64B	2.71B	2.76B	2.58B
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	415.86M	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: 10.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 10.54 is below the 20-day moving average (MA) of 10.67, below the 50-day MA of 11.11, and below the 200-day MA of 10.56, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 41.42 is Neutral, neither overbought nor oversold. The STOCH value of 18.01 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	63 Neutral	$1.65B	28.87	4.22%	5.72%	1.72%	-3.49%
APLE	63 Neutral	$2.64B	15.16	5.41%	8.98%	0.57%	-13.58%
SHO	61 Neutral	$1.70B	419.72	0.96%	3.88%	0.37%	-97.38%
RLJ	58 Neutral	$1.03B	32.47	2.53%	8.75%	1.42%	-20.13%
XHR	58 Neutral	$1.22B	22.89	4.58%	4.21%	4.29%	141.01%
PEB	52 Neutral	$1.22B	-17.90	-3.74%	0.38%	0.99%	-360.58%

Pebblebrook Hotel Corporate Events

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.

The most recent analyst rating on (PEB) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Pebblebrook Hotel stock, see the PEB Stock Forecast page.

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.

The most recent analyst rating on (PEB) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on Pebblebrook Hotel stock, see the PEB Stock Forecast page.

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.

The most recent analyst rating on (PEB) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Pebblebrook Hotel stock, see the PEB Stock Forecast page.

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.

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.