Pebblebrook Hotel Trust Stock Earnings Reports

Pebblebrook reported an exceptional Q1 2026 with results well above guidance: same-property hotel EBITDA rose 27.6% to $82.2M, adjusted EBITDA was $73.3M (up 29.5% YoY), and adjusted FFO per diluted share doubled to $0.32. Revenue strength was broad-based across the portfolio (occupancy +550 bps, ADR +2.8%, RevPAR +11.8%) with strong contributions from San Francisco and Los Angeles events (Super Bowl, NBA All-Star, etc.), recovering assets (e.g., Los Angeles post-fire), and redeveloped properties. Revenue quality improved (food & beverage and outlet revenues up; higher on-property spend) while same-property expenses increased only 5.6%, generating meaningful hotel EBITDA margin expansion and operating leverage. Balance sheet and liquidity remain solid: net debt/EBITDA fell to 5.5x, $24.6M cash, ~$641M revolver capacity, ~4.1% weighted average interest rate with ~98% of debt effectively fixed. The company repurchased >400k shares YTD (avg $12.11). Capex was $11.9M in Q1 with full-year guidance of $65–$75M. Management raised the midpoint of the full-year RevPAR and total RevPAR outlook by ~75 bps and now expects same-property EBITDA growth midpoint near ~7% (range 5.2%–8.6%), but remains cautious for the balance of 2026 due to geopolitical risks (Middle East conflict), potential airline/jet-fuel impacts on inbound travel, and shortened booking windows. Company remains opportunistic on branding/portfolio actions (rebranded Mondrian to Perception by Hilton with minimal cash cost), is tracking World Cup impacts conservatively (some incremental rate and non-room revenue expected), and continues to see promising transaction market signals in out-of-favor coastal urban markets (notably San Francisco and L.A.).