Pebblebrook Hotel Trust (PEB)

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Pebblebrook Hotel Trust owns irreplaceable, high-quality hotels, yet its common stock trades at a steep 40–55% discount to NAV. Preferred shares yield 8%+, have uninterrupted dividends—even through COVID—and trade 20–30% below par, offering superior risk/reward. Robust asset backing, strong free cash flow coverage, and management's proactive refinancing provide preferred shareholders with safety and upside potential.

Pebblebrook Hotel Trust (NYSE:PEB ) Q2 2025 Earnings Conference Call July 30, 2025 9:00 AM ET Company Participants Jon E. Bortz - Chairman & CEO Raymond D.

Although the revenue and EPS for Pebblebrook Hotel (PEB) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Pebblebrook Hotel (PEB) came out with quarterly funds from operations (FFO) of $0.65 per share, beating the Zacks Consensus Estimate of $0.58 per share. This compares to FFO of $0.69 per share a year ago.

BETHESDA, Md.--(BUSINESS WIRE)---- $PEB #REIT--Pebblebrook Hotel Trust Reports Second Quarter 2025 Results.

Beyond analysts' top-and-bottom-line estimates for Pebblebrook Hotel (PEB), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.

Pebblebrook Hotel Trust operates in a competitive, cyclical sector, impacting its credit profile despite strong asset coverage and decent FFO yield. After Moody's methodology and market adjustments, I assign PEB an overall Ba2 credit rating, with preferred stock rated two notches lower at B1. PEB's preferred shares yield over 8% and trade below par, but their risk is elevated due to sector volatility and lower credit ratings.

Publicly listed US equity REITs ended June at a median 19.1% discount to their consensus NAV per share estimates, according to S&P Global Market Intelligence data. The hotel sector traded at the largest median discount to NAV at 35.5%, down from a 35.7% median discount to NAV as of May 30. Healthcare REITs continued to trade at the highest median premium, 19.3%, which is about 1.4 percentage points down from the 20.6% median premium to NAV as of May 30.

BETHESDA, Md.--(BUSINESS WIRE)---- $PEB #REIT--Pebblebrook Hotel Trust Schedules Second Quarter 2025 Earnings Release and Conference Call.

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BETHESDA, Md.--(BUSINESS WIRE)---- $PEB #REIT--Pebblebrook Hotel Trust Declares Dividends for Second Quarter 2025.

Pebblebrook Hotel Trust trades at a steep 60% discount to GAAP book value, largely due to San Francisco market changes and post-pandemic business travel declines. Despite headwinds, PEB posted dual earnings beats and expects significant 2025 growth as LaPlaya Beach Resort fully reopens, boosting hotel EBITDA. The REIT's balance sheet is strong, with ample cash, no debt maturities until late 2026, and a strong free cash flow covering preferred dividends.

Pebblebrook Hotel Trust is a hospitality REIT, which has repositioned itself towards leisure-oriented properties in recent years. Despite a healthy financial position, the dividend remains at a nominal $0.01/share, deterring yield-focused investors, while management focuses on share repurchases. Given the low dividend yield and prolonged undervaluation, I rate Pebblebrook Hotel Trust as a "Sell".

Pebblebrook Hotel Trust (NYSE:PEB ) Q1 2025 Earnings Conference Call May 2, 2025 9:00 AM ET Company Participants Ray Martz - Co-President and CFO Jon Bortz - Chairman and CEO Tom Fisher - Co-President and CIO Conference Call Participants Jay Kornreich - Wedbush Smedes Rose - Citi Floris Van Dijkum - Compass Point Shaun Kelley - Bank of America Duane Pfennigwerth - Evercore Jamie Feldman - Wells Fargo Gregory Miller - Truist Ari Klein - BMO Capital Markets Chris Darling - Green Street Operator Greetings, and welcome to the Pebblebrook Hotel Trust First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode.