Pebblebrook Hotel Trust Stock Earnings Reports

Pebblebrook reported an exceptionally strong Q1 2026: same-property hotel EBITDA rose 27.6% to $82.2M, adjusted EBITDA was $73.3M (up 29.5%), and adjusted FFO per diluted share doubled to $0.32, all above the high end of guidance. Revenue strength was broad-based across urban and resort portfolios (notably San Francisco and L.A.), with same-property RevPAR up 11.8% driven by a 550 bps occupancy gain and 2.8% ADR growth. Management highlighted tight expense control and operating initiatives that kept same-property total expenses to +5.6%, producing strong margin expansion and better flow-through to EBITDA. Balance sheet metrics improved: net debt/EBITDA fell to 5.5x, ~$24.6M cash, ~$641M revolver capacity, and a 4.1% weighted average interest rate with ~98% of debt fixed. Capital spending remains normalized ($65–$75M expected for 2026) and share repurchases continued (400k+ shares at $12.11 avg). Management raised its full-year RevPAR and total RevPAR midpoint by ~75 bps and now forecasts same-property EBITDA growth midpoint near 7%, but reiterated a cautious stance for Q2 and the rest of the year due to geopolitical risks (Middle East conflict), higher fuel prices, potential airline impacts, and shortened booking windows. Key operational notes: continued ramp of redeveloped assets, positive World Cup exposure (but conservatively forecast), rebranding of Mondrian LA to Veloce/Curio (Hilton) expected to improve performance, and redevelopment permitting timelines (e.g., Paradise Point) remain lengthier than desired.