NYSE:PEB
Pebblebrook Hotel Trust
A premier real estate investment trust specializing in luxury and upscale hotels worldwide with a diversified global footprint.
Key Metrics
Investment Thesis
Bull Case
PEB offers exposure to the resilient travel and leisure recovery with a premium portfolio of luxury hotels that command higher margins; The trust maintains a solid equity base of $2.56B relative to $5.35B in total assets, providing financial flexibility for dividends and acquisitions.
Bear Case
Persistent net losses over the last three years suggest ongoing pressure from interest expenses or asset impairments that could persist if rates remain elevated; Significant cash outflows for debt repayment of $511.2M may limit capital available for growth initiatives or shareholder returns in the short term.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (PEB) is a leading owner of hotels and resorts operating primarily in North America and Europe, focusing on luxury and upscale brands. The company generates revenue through room sales, food and beverage operations, and other hotel-related services across its extensive portfolio. Key financial highlights include $1.48B in annual revenue and a strong balance sheet with $2.56B in shareholders' equity.
Analysis
Management Discussion
The company reported revenue of $1.48B in 2025, showing consistent growth from previous years despite a net loss of $62.2M driven by significant debt repayments of $511.2M and financing outflows of $281.4M. Operating profit remains healthy at $43.8M, supported by gross profits of $490.0M against operating expenses of $446.2M, indicating efficient cost management within the high-revenue environment.
Industry Overview
The global hospitality industry is rebounding strongly post-pandemic with robust demand for luxury travel experiences and corporate meetings driving occupancy improvements. Real estate investment trusts like Pebblebrook provide an efficient vehicle for investors to gain exposure to this cyclical sector without direct property management responsibilities.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $1.39B | $1.42B | $1.45B | $1.48B |
| Cost of Revenue | $883.5M | $941.1M | $961.0M | $985.6M |
| Gross Profit | $508.4M | $478.9M | $492.3M | $490.0M |
| Operating Expenses | $493.7M | $441.1M | $408.3M | $446.2M |
| Operating Income | $14.7M | $37.8M | $84.0M | $43.8M |
| G&A | $39.2M | $44.8M | $48.1M | $49.5M |
| Stock-Based Comp | $11.3M | $12.5M | $13.6M | $13.7M |
| Other OpEx | $454.5M | $396.3M | $360.2M | $396.7M |
| Non-Operating Income | $-99.4M | $-111.4M | $-109.6M | $-99.7M |
| Interest Expense | $100.0M | $115.7M | — | — |
| Pre-Tax Income | $-84.7M | $-73.6M | $-25.6M | $-55.9M |
| Income Tax | $277.0K | $655.0K | $-25.6M | $6.3M |
| Continuing Ops | $-85.0M | $-74.3M | $16.0K | $-62.2M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-85.0M | $-74.3M | $16.0K | $-62.2M |
| Minority Interest | $2.2M | $3.7M | $4.3M | $3.6M |
| Net to Common | $-87.2M | $-78.0M | $-4.2M | $-65.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $41.0M | $183.7M | $206.7M | $184.2M |
| Operating Leases | $370.4M | $360.8M | $351.1M | $353.9M |
| Total Assets | $6.13B | $5.82B | $5.69B | $5.35B |
| Total Liabilities | $3.05B | $2.97B | $2.91B | $2.79B |
| Shareholders' Equity | $3.08B | $2.85B | $2.79B | $2.56B |
| Paid-In Capital | $4.18B | $4.08B | $4.07B | $3.97B |
| Retained Earnings | — | — | — | $-1.50B |
| AOCI | $35.7M | $24.4M | $16.6M | $605.0K |
| Total L&E | $6.13B | $5.82B | $5.69B | $5.35B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-85.0M | $-74.3M | $16.0K | $-62.2M |
| Non-Cash Adjustments | $317.1M | $298.8M | $284.7M | $300.7M |
| Working Capital Changes | $46.6M | $11.7M | $-9.7M | $11.2M |
| Cash from Operations | $278.7M | $236.2M | $275.0M | $249.7M |
| Cash from Investing | $-109.4M | $142.0M | $-92.8M | $10.3M |
| Debt Issuances | $1.38B | $140.0M | $400.0M | $400.0M |
| Debt Repayments | $1.43B | $211.1M | $465.4M | $511.2M |
| Share Buybacks | $70.7M | $92.8M | $16.9M | $72.6M |
| Dividends Paid | $5.3M | $5.0M | $4.9M | $4.8M |
| Cash from Financing | $-209.3M | $-236.8M | $-158.2M | $-281.4M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-40.0M | $141.4M | $23.9M | $-21.4M |
| Beginning Cash | $92.2M | $52.3M | $193.6M | $217.6M |
| Ending Cash | $52.3M | $193.6M | $217.6M | $196.2M |
Frequently Asked Questions
How does Pebblebrook Hotel Trust make money?
Hotel Operations including Luxury, Upscale, and Select-Service segments; Hotel Management services providing fees to third-party operators; Real Estate Investment activities involving acquisitions and dispositions of hotel assets.
What are the main risks for PEB?
Macroeconomic headwinds including high interest rates impacting hotel valuation multiples and guest spending power; Potential travel demand slowdowns affecting occupancy rates and RevPAR performance; Regulatory changes or property tax increases eroding operating margins.
What is PEB's competitive advantage?
Diversified geographic presence across North America and Europe reduces reliance on single markets; Strong brand partnerships with major hospitality groups ensure steady occupancy and rate growth; Robust balance sheet allows for strategic debt refinancing and opportunistic capital deployment.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.