Pebblebrook Hotel Trust (PEB)

Over the past six months, Pebblebrook Hotel Trust's stock price has decreased by 12%, falling from $12.50 to $11.00. Recent events include a $400 million convertible notes offering to partially retire $750 million in notes due in 2026, and a new $150 million share repurchase program. Analyst ratings varied, with Stifel raising its price target to $14 with a "Buy" rating, Truist Securities reiterating a "Hold" rating with an $11 price target, and Cantor Fitzgerald initiating coverage with a "Neutral" rating and a $12 price target. Los Angeles fires impacted Q1 2025 Same-Property RevPAR by an estimated -330 to -430 basis points and full-year 2025 by approximately -115 basis points. Pebblebrook lowered its outlook for the second half of 2025 due to concerning signs, including a slowdown in group leads, longer contract execution times, caution among meeting planners, and a drop in inbound international travel.

Demand for Pebblebrook Hotel Trust's hotel stays exhibits seasonality, with October historically showing a short bias. The company's diversified portfolio across urban and resort markets helps balance demand. Leisure demand has shown resilience, particularly in resorts and urban properties during weekends. Group demand has remained strong, with group room nights rising and accounting for a significant portion of room revenue. Major city events and convention calendars drive demand in urban markets. The company anticipates incremental demand from major events across its portfolio in 2026, including World Cup matches in Boston. Business transient travel is recovering, but economic uncertainties and changes in government policy have led to a slowdown in group leads and international travel, impacting the second half of 2025.

Pebblebrook Hotel Trust (PEB) is a publicly traded REIT specializing in upper upscale and luxury hotels and resorts in major U.S. gateway cities and select destination resort regions. The company operates within the REITs sector, focusing on the Hotel/Motel industry, with a portfolio of 46 hotels totaling approximately 11,924 to 12,000 guest rooms. While many properties are independent, some operate under well-known brands like Marriott, Starwood, InterContinental, Hilton, and Hyatt.

Pebblebrook Hotel Trust's geographic footprint is concentrated in major U.S. urban and resort markets, with a particular emphasis on coastal markets. Key locations include West Coast gateway towns such as Seattle, Portland, San Francisco, Santa Cruz, Los Angeles, and San Diego. Other significant markets include Naples, Key West, Chicago, Boston, New York, Philadelphia, Washington, D.C., and Miami.

Pebblebrook Hotel Trust maintains a strong brand reputation through strategic property locations, a diversified portfolio, and strong brand affiliations alongside an independent identity. The company focuses on major gateway coastal markets and leisure destinations, investing in upgrading assets and adopting automation technologies to enhance margins and revenue. While the portfolio largely consists of independent hotels, affiliations with renowned brands like Marriott, Starwood, InterContinental, Hilton, and Hyatt enhance its market presence. The company has sold $900 million in assets since the pandemic for share buybacks and debt reduction and invested over half a billion dollars in repositioning and redeveloping its portfolio, leading to market share and RevPAR gains.

Pebblebrook Hotel Trust's stock ownership is a mix of institutional, insider, and public/individual investors. Approximately 66.23% of the company's stock is owned by Institutional Investors, 2.35% by Insiders, and 31.42% by Public Companies and Individual Investors. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, T. Rowe Price Investment Management, Inc., State Street Corp, Fuller & Thaler Asset Management, Inc., and iShares Core S&P Small-Cap ETF. Jon Bortz, Chairman and CEO, is a notable insider owner.