PEB

Image source: The Motley Fool. Thursday, July 30, 2026 at 9:00 a.m. ET Co-President and Chief Financial Officer - Raymond Martz Chairman and Chief Executive Officer - Jon Bortz Co-President and Chief Investment Officer - Tom Fisher Operator: Greetings, and welcome to the Pebblebrook Hotel Trust Second Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Raymond Martz, Co-President and Chief Financial Officer. Thank you. You may begin. Raymond Martz: Thank you, Christine, and good morning, everyone. Welcome to our second quarter 2026 earnings call. Joining me today is Jon Bortz, our Chairman and Chief Executive Officer; and Tom Fisher, our Co-President and Chief Investment Officer. But before we begin, I'd like to remind everyone that our comments today are as of July 30, 2026. Today's comments may include forward-looking statements that are subject to various risks and uncertainties. Please refer to our SEC filings for a detailed discussion of these risk factors and visit our website for reconciliations of non-GAAP financial measures mentioned today. Now let's get to the second quarter results. We delivered another excellent quarter, exceeding the high end of our outlook across every key earnings metric for the second consecutive quarter. Same-property hotel EBITDA increased 7.1% to $123.3 million, $6.6 million above the high end of our outlook. Adjusted EBITDA was $116.2 million, $6.2 million above the high end and adjusted FFO per diluted share was $0.68, $0.06 above the high end. The story of the quarter was straightforward. Our resorts in San Francisco led the portfolio. Stronger pricing drove total revenue growth, our teams expanded margins and disciplined capital allocation activities amplified our per share growth. Let me take each in turn. At the portfolio level, same-property occupancy increased approximately 130 basis points to 79.4%. ADR grew 4.7%, RevPAR increased 6.5% and total RevPAR climbed 4.7%. Nearly 3/4 of our RevPAR growth came from rate, a meaningful shift from recent quarters when occupancy gains did most of the work. As occupancy rebuilds, greater compression is giving our teams more pricing confidence, which is supporting higher room rates. We also see less price sensitivity among upper-end consumers, benefiting our premium resorts and higher-end urban properties. Let's start with the leaders. Our resorts were the principal growth engine in Q2. Resort RevPAR increased 12% and total RevPAR climbed 10.9%, supported by continued robust out-of-room spending. The strong revenue growth drove hotel EBITDA for our resorts up 18.5% with 216 basis points of EBITDA margin expansion. Applied led the way with occupancy climbing more than 11 points, RevPAR increasing 33.9% and EBITDA rising 28.8% as this post-hurricane construction ramp-up continued. Paradise Point in San Diego was close behind, growing RevPAR 22% and EBITDA up by more than 40%. Resorts generated roughly $16.5 million of the portfolio's $18.3 million revenue increase and their $8.9 million EBITDA gain more than offset the declines in urban markets held back by weaker convention calendars. More important than the headline growth was the broad nature of the improvement. At our resorts, group room nights increased 18% and group revenue grew nearly 19%, led by association and corporate group demand. Transient ADR rose more than 12%, producing nearly 10% transient revenue growth on slightly fewer room nights. That powerful combination, rising group volume and stronger transient pricing demonstrates the return on the capital we've invested in guestrooms, meeting spaces, outdoor venues, restaurants and bars. Newport is a good example. RevPAR grew 20.3% on a 13.5% ADR increase with total RevPAR growth of 18.6%, translating into EBITDA growth of almost 26%. Estancia, another recent major development, generated RevPAR growth of 22.8%, total RevPAR growth of 19.6% and EBIT growth of 54.7%. Both of these resorts continue to gain share following their redevelopments and luxury repositioning. San Francisco was once again our top urban market. Occupancy increased nearly 500 basis points and ADR rose almost 9%, driving RevPAR 16% higher and hotel EBITDA 24.6% higher, roughly 250 basis points of margin expansion, all without the RSA citywide, which shifted to March this year. The Snowflake and Databricks citywides in June more than made up for the difference and business transient and leisure demand were very strong beyond the citywides. Year-to-date, EBITDA at our 7 San Francisco hotels is up by more than $13 million or 110% versus last year, making significant progress against the $18 million recovery opportunity detailed in our updated investor presentation. Los Angeles is following a similar path, but with less intensity. RevPAR up 8.6%, hotel EBITDA up almost 14% and year-to-date EBITDA higher by approximately $6 million or 73%. Capturing the larger $22 million upside opportunity for our Empire L.A. portfolio, as outlined in our investor presentation, will require continued market recovery and property level execution, but the momentum is building and the 2027 Super Bowl and the 2028 Olympics will provide a big push. Our weaker urban markets included downtown San Diego, where RevPAR declined 9.1% against a difficult citywide comparison and Washington, D.C., where RevPAR declined 9.9% amid weak government-related travel demand and significant property level leadership transitions, which are now largely complete. Overall, urban RevPAR increased 4.1%, but urban total RevPAR increased only 0.8% and urban hotel EBITDA declined 1%. The strong performance in San Francisco and Los Angeles was offset by weaker convention calendars and banquet and catering revenue in San Diego and Boston, along with continued government-related weakness in Washington, D.C. The result was a shift from group to transient demand, which is worth a closer look. Portfolio-wide, the quarter was transient led. Transient revenue was up nearly 10% on a 7% increase in ADR, concentrated in higher rate channels. Group revenue declined approximately 2%, while corporate group revenue was essentially flat. Importantly, the group softness reflected the convention rotation, not demand pullback. That mix also helps explain the gap between the portfolio's 6.5% RevPAR growth and 4.7% total RevPAR growth. Out-of-room revenues grew 1.7%. Urban banquet and catering revenue declined approximately 20%, concentrated primarily where the citywide calendars were weakest and where World Cup matches scared up groups. By contrast, resort food and beverage revenue grew nearly 11% with banquet and catering revenue increasing more than 16% on resort occupancy growth of 310 basis points. Where group and transient customers showed up, they kept spending and spending a lot. Looking at how the quarter developed, April started well with RevPAR rising 6%. May was the softest month as we flagged last quarter, up roughly 2% on later convention calendars. June then accelerated sharply with RevPAR up nearly 12%, driven by an ADR increase of 14%. Occupancy actually dipped slightly, so June was entirely a pricing story. World Cup increased RevPAR modestly in June and in the quarter, but reduced non-room revenues. Jon will discuss the overall World Cup impact in more detail in his comments. So that's the revenue story. The earnings story is how effectively our teams turn that revenue into profits, and they did another great job. They converted 4.8% total revenue growth into 7.1% same-property hotel EBITDA growth with same-property total expenses increasing just 3.8% and margins expanding 67 basis points to 30.6%. The discipline shows up across the P&L. Rooms expense grew at less than half the pace of rooms revenue, increasing only 3.1%, even as occupancy climbed 130 basis points and room revenue grew 6.6%. Energy expenses were also well contained, up 2.7% for the quarter and flat year-to-date, reflecting the benefit of our energy reduction and sustainability initiatives. On a per occupied room basis, total expenses increased just 2%, highlighting our team's continued positive results from our ongoing intense focus on operating efficiency. We also completed our property insurance renewal on June 1 at premiums approximately 27% below last year or $6 million lower, which is better than we anticipated and a nice tailwind through next May. A more favorable insurance market helped, but so did a disciplined program design and the capital we've invested to harden weather-exposed assets. Now let's turn to capital allocation. The prior quarter you won't find in any same property statistic. Despite losing approximately $5 million of hotel EBITDA from hotels we sold and comparing against $3.2 million of prior year business interruption income, adjusted EBITDA declined less than 1% and adjusted FFO dollars were essentially flat. A 4% decrease in diluted share count lifted adjusted FFO per share 4.6%, while retained free cash flow per share after dividends increased nearly 25%. This is what disciplined capital allocation should accomplish. per share earnings and cash flow growing faster than company earnings despite asset sales. On the investment side, we invested $12.5 million in the portfolio during the quarter and remain on track for $65 million to $75 million for the full year. This lower capital requirement converts more of our earnings into retained free cash flow for debt reduction and opportunistic repurchases of our common and preferred shares. During the quarter, we sold the Chamberlain West Hollywood Hotel for $43.5 million and used $26.1 million of the proceeds to retire $33.7 million in preferred shares at a 23% discount. That single transaction generated approximately $7.6 million of immediate value accretion and eliminated over $2 million of annual preferred distributions. And over the last 8 months, we sold 3 hotels for just shy of $160 million at an aggregate 15.4x EBITDA multiple and a 4.6% NOI cap rate. These sales as the ones before, continue to validate the portfolio's private market value. The value creation playbook is simple: sell hotels at higher private market values and use the proceeds to reduce debt and buy back common and preferred securities at prices below their underlying value. During the first half, we repurchased 0.9 million common shares at an average price of $13.62 and retired 1.5 million preferred shares at an average 23% discount for liquidation preference. Our balance sheet also continues to improve. Net debt to trailing 12-month corporate EBITDA declined to 5.3x from 5.5x at the end of Q1 and 5.9x at the end of 2025. We ended the quarter with $270 million of cash, $641 million of revolver availability and $90 million of delayed draw term capacity or a total of $1 billion of liquidity. The remaining $350 million of the 2026 convertible notes are fully funded through existing cash, expected free cash flow and term loan capacity, and we have no other debt maturities until 2028. Stepping back, the first half demonstrates 2 forms of compounding, operating leverage of the hotels and disciplined capital allocation at the corporate level. Same-property hotel revenues increased 7.2%. Same-property hotel EBITDA grew 14.5%. Adjusted FFO per share improved 23.8% and free cash flow per share surged 69% to $0.76 or $87.8 million. Each layer amplifies the one before. And with that, I'd like to turn the call over to Jon for more color on current demand trends, event-related business, our markets and the outlook for the balance of 2026. Jon? Jon Bortz: Thanks, Ray. Since Ray covered our second quarter performance in detail, I thought I'd step back and provide a more high-level view of both the industry and Pebblebrook. So let's start with the industry's performance in the second quarter. As a reminder, the industry setup was very favorable in Q2. Benefits we expected from better holiday calendar, a uniquely active major events calendar and a reconnection between GDP growth and industry demand growth. They all occurred in the second quarter. Going into the quarter, our concern revolved around the potential for geopolitical or policy events that would negatively impact the economy and travel. Fortunately, the conflict in the Middle East and constantly changing trade policies have not yet had a negative impact on the economy or U.S. travel in general so far this year. As a result, industry demand growth was healthy in the quarter and with little new supply being added, occupancies rose and ADR growth accelerated due to the better setup, more compression days, less price sensitivity by higher-end customers, in particular, all of which led to more pricing confidence. All of the major hotel demand segments remained favorable. Group, corporate transient and leisure travel all grew weekdays and weekends alike. We even saw the international travel balance improve in June. Inbound travel turned positive for the first time in quite a while, presumably helped by World Cup visitors, while outbound travel declined. Both sides of that provide benefits for U.S. hotels, more foreign visitors coming in and more Americans staying home. For Pebblebrook, as Ray described in detail, we saw the same industry benefits in Q2 and more, even though we had soft convention calendars in a number of our major markets. During the second quarter, in the quarter, for the quarter pickup was very strong, exceeding last year by $8.4 million. We haven't seen any increase in group cancellations or attrition and attendance levels for group meetings have been more predictable than last year. We continue to watch for signs of weakening, but pickup in and for the month, quarter and year has remained favorable. World Cup delivered a modest benefit to room revenues. We estimate an increase of between $1.5 million and $2.5 million or roughly 60 to 100 basis points for the quarter in RevPAR. The incremental World Cup demand was largely offset by corporate group and transient business that stayed away due to higher rates and many booking restrictions. So the net room benefit came primarily from rate, not occupancy. This also explains the slight June occupancy dip Ray mentioned. The change in mix from group to transient, unfortunately also had a negative impact on food and beverage revenues in our match markets, particularly banquet and catering, which declined on a year-over-year basis and offset much of the room revenue gain. In total, we estimate the net benefit to hotel EBITDA from World Cup was between $500,000 and $1 million, a relatively minor benefit overall, but a benefit nonetheless. Turning back to the industry outlook with a strong economy that remains resilient and with corporate profit growth at high levels and accelerating, there are fundamental reasons to be encouraged about positive industry trends continuing in the second half of this year. However, we remain concerned about potential negative impacts from the protracted and widening Middle East conflict, policy changes and geopolitical instability and the real possibility of another potential government shutdown this fall. Given the strong operating performance in Q2 and with July continuing that trend, we're increasing our industry RevPAR growth outlook to a range of 3.5% to 4.5%. As we look out beyond this year, we believe we're at the beginning of a strong multiyear up cycle for the hotel industry. I think we can now confidently forecast that supply should remain very limited through most of the rest of this decade. We're at the beginning of a major multiyear capital investment cycle related to both AI and the reshoring of manufacturing, and we have another huge business investment cycle right behind this one with the creation and build-out of the robotics industry. We also expect very significant and growing benefits from the massive wealth that has been created over the last 15 years for both investors and employees and from the largest transfer of wealth in global history as the baby boomers begin to pass on the wealth they've amassed. We believe the prospects for healthy multiyear demand growth have never been stronger or clearer in the last 30 years, nor has supply growth been so limited at the same time. These are incredibly positive multiyear fundamentals. The multiyear setup is very good, just like this year's setup was very good. Of course, a lot of things could still go wrong as they did last year. Before turning to our Q3 and updated full year outlook, I want to spend a few minutes on why we're increasingly constructive about 2027 and the broader multiyear setup. For 2027, we believe the strong demand and supply fundamentals should outweigh any headwinds related to difficult comparisons to this year's numbers. There are a number of reasons for this view. First, we expect the economy to remain strong and potentially accelerate as business capital investments ramp further next year and corporate profit growth remains at high levels. Second, we believe the wealth effect will provide a growing positive impact on spending and travel. Third, while we have a strong holiday calendar this year, it's just as favorable in 2027. In addition, while the industry benefited meaningfully in June and early July from World Cup and America 250, we expect demand to materially outpace supply next year, which will drive occupancies higher, creating more compression and greater pricing power throughout 2027, which should more than offset the loss of this year's event-related benefits. And finally, we ultimately expect the international inbound outbound travel imbalance to reverse and it could occur next year if the positive experiences foreign travelers had at the World Cup and traveling throughout the U.S. and the very favorable media coverage to the World Cup activities translate as they normally do into increased future travel to the host country. A more positive impression of the U.S. compared to all the previous negative media about our country should help increase travel to the U.S. from abroad. For Pebblebrook in 2027, we should continue to see significant growth from the recoveries in our urban markets, led by San Francisco and Los Angeles, coupled with more favorable convention calendars in San Diego and Boston that are expected to significantly improve the performance of those markets next year. We also have a number of significant events next year, including the Super Bowl moving from San Francisco to Los Angeles, NCAA Men's Basketball Regional Finals in L.A., the NFL Draft in Washington, D.C., the Star Wars 50th anniversary celebration in L.A., the Major League Baseball All-Star game in Chicago and a significant amount of expected pre-Olympic travel into L.A. We should also see further upside from our redeveloped properties as they gain additional share. And finally, our resorts should benefit from the ongoing K-shaped economy and the growing wealth of the higher-end consumer. While the Super Bowl won't be in San Francisco next year, we continue to expect strong RevPAR growth in the city as citywides continue to return, albeit at lower rates than the Super Bowl, and corporate transient travel should grow significantly at higher rates as corporate growth in San Francisco continues to boom. We also expect leisure travel to see further increases as the impression of the city's environment has turned positive over the last year, and the city has been a showcase this year during major events. Turning back to this year. Q3 is off to a great start with July proving to be stronger than we expected. Short-term pickup has surprised to the upside, and we think this indicates that summer vacation travel is starting strong, continuing the positive leisure trends from Q2. Having July 4 fall on a Saturday provided a big lift to our portfolio overall and probably a much bigger lift than the weekend related America 250 events. Group pace for the third quarter is also favorable. Corporate travel growth remains strong and leisure travel is accelerating and allowing us to average higher prices through less discounting, fewer promotions and reduced use of lower-priced wholesale channels. Based on preliminary results through the 25th, July RevPAR is on pace to grow between 7% and 8% over last year. However, we're not prepared to extrapolate July's unusually strong short-term pickup across the entire quarter. Our Q3 range preserves a prudent allowance for shorter booking windows, potential macroeconomic and policy-related volatility and the impact of geopolitical events. For Q3, our outlook assumes same-property RevPAR growth of 1% to 3%, same-property hotel EBITDA of $100.5 million to $104.5 million, adjusted EBITDA of $92.5 million to $96.5 million and adjusted FFO per share of $0.48 to $0.52. When we look at our pace for the second half of the year, as of the end of June, room revenues were pacing ahead of same time last year by 5.5%, which is a total of $10.7 million. About 80% of this revenue pace advantage is being driven by transient with the remaining 20% in group. If pickup for the second half of the year equals last year's pickup, it would translate to RevPAR growth equal to roughly 2.4% in the second half. To put these numbers in perspective, our current nominal pace advantage is in line with the high end of our implied RevPAR growth outlook for the second half of the year. So if pickup in the second half runs ahead of last year, then we would exceed our outlook by the higher pickup. Recall that last year, with everything that happened, we lost pace advantage as the year progressed and finished down for the year in room revenue. Speaking of our outlook, we're raising our full year outlook to reflect the second quarter outperformance while maintaining our prior assumptions for the second half. With the increased outlook, we're now forecasting same-property RevPAR growth for the year of 4.5% to 5.5%, an increase of 125 basis points at the midpoint. We're also forecasting same-property EBITDA growth of 8.2% to 10.5% with the midpoint at 9.3%, a healthy increase for the year and a material step-up from our prior outlook. These increases translate into an adjusted FFO outlook of $1.69 to $1.76 per diluted share, an increase of $0.08 at the midpoint with a similar increase in our free cash flow outlook. As I indicated earlier, but worth repeating, current trends remain favorable, but booking windows remain short and the geopolitical policy and macroeconomic environment remains uncertain. We're encouraged by the industry trends we've been seeing, but we're not yet comfortable assuming visibility we don't yet have. We'll continue to take the year 1 quarter at a time. And if there's no material impact from geopolitical policy or other macroeconomic events, then we should keep performing favorably to our outlook just as we have in the first half. With a terrific first half behind us and a positive setup in the second half, we remain very excited about the full year for Pebblebrook. Now we just need the rest of the year to cooperate by providing a more stable environment. So with that, we'd now be happy to take your questions. Christine, if you wouldn't mind, please proceed with the Q&A. Operator: [Operator Instructions] Our first question comes from the line of Duane Pfennigwerth with Evercore ISI. Duane Pfennigwerth: Congrats on these results. I just wondered if you could speak a little bit more to the drivers of the better pickup that you have seen and you're continuing to see. Is that primarily leisure transient? Or are there other drivers to that better pickup, which feels like the key assumption for the back half? Jon Bortz: The drivers have been fairly broad, but I'd say, clearly led by the transient side. And it would be both corporate transient in terms of in the month, for the month, in the quarter, for the quarter pickup, and it would be leisure transient. And so from a demand side, those are the primary drivers. group stability and group attendance and predictability in group attendance and spend are also positive. I think the other driver of potential revenue growth, which is what we've seen -- been seeing increasingly, and we saw it in Q2, and we saw it in resorts in San Francisco, is an ability to drive pricing higher through increased pricing through increased premiums on premium rooms, no different than the airlines as an example, through using less promotions and discounting and looking at our mix and using channels trying to drive business more through the higher-rated channels and being less focused on some of the lower-rated channels. So it's fairly comprehensive in terms of what we've seen in the drivers and what we hope will continue in the second half of the year. Operator: Our next question comes from the line of Smedes Rose with Citi. Bennett Rose: I was wondering, you provided a lot of detail around the operating outlook, which sounds relatively positive, and I get that you're somewhat tempered. I was just wondering if you could speak to what you're seeing in the transactions market. Is that -- it seems like it's kind of picking up from what we're hearing, but curious as to what you guys are seeing? Thomas C. Fisher: Yes, Smedes, this is Tom. Listen, it continues to be more constructive. Obviously, we expected that in terms of the improving operating fundamentals. As we stated previously, capital followed performance. We're seeing more transactions. We're seeing larger transactions. We're seeing more investor depth and performance is leading to more investor conviction. So you have all of the ingredients. I think you have increasing operating fundamentals, you have more investor conviction. You have more trades, which I think is giving more confidence to other investors to participate. You have the debt markets that continue to remain attractive, both in terms of availability as well as pricing. And so I think overall, it's set up for a more active, although I would tell you that it's somewhat bifurcated that it continues to kind of trend towards the luxury type assets and the resort type assets and then assets where markets have significant growth that investors can underwrite. Operator: Our next question comes from the line of Gregory Miller with Truist. Gregory Miller: I'd like to ask about international inbound. As you discussed, the World Cup provided a lot of positive publicity for international audiences. Do you find that the local convention and visitors bureaus are taking advantage of this opportunity to promote their cities in a different way given the goodwill? Jon Bortz: I mean we've had a lot of conversations with folks like SF Travel as an example, or the San Diego authority. And we've seen them increasingly as the year has gone on, they have increasingly put more money into the international side and more effort into the international side, including sales trips that they've been making. And I'll give you an example most recently. And I think they were pretty hesitant at the beginning of the year. And as we started to see the imbalance sort of flatten out as the year has gone on and then turn positive in June, like SF Travel has a fairly major marketing effort going on in Canada right now. And with a view that maybe the Canadians are ready to come back. They love our country. They were here, many of them were here for World Cup. The Canadian team did well, and they had a positive experience like other World Cup travelers. And I think that word of mouth that goes back to those countries is viewed as a positive catalyst and a positive opportunity. And so we are seeing -- I can't speak for all of them, but I know those 2 markets, as an example, San Francisco and San Diego are putting more time, effort and money into wing international inbound back to their markets. Operator: Our next question comes from the line of Aryeh Klein with BMO Capital Markets. Aryeh Klein: I guess when we look at first half RevPAR growth, what do you think the underlying growth is versus the 8.8% year-to-date that was reported if adjusted for the World Cup and maybe some of the other unique tailwinds like calendar shift? And is that the right way to think about 2027 and that the events that we had this year versus next year kind of net each other out from a tailwind standpoint? Jon Bortz: Well, it's a great question and a tough question because as we've talked about historically, people don't always tell you why they're coming. And so I think what we've been seeing is a very broad-based increase in demand in all the segments, except for international inbound, which, again, perhaps finally improved a little bit in June. It seems like demand growth is tracking in the 1.5% to 2% range, I think, from an underlying perspective on a year-over-year basis. And looking at the Q2 GDP report preliminary that came out this morning, it was right at 1.5%. And so I think as we've talked about in the past, I think demand growth is likely to track reasonably closely to GDP growth, and that's what we've been seeing so far this year. I think that what changes in these kinds of up cycles is what happens with rate. And I think what we were talking about in the call was that the increased rate that came through World Cup is likely to be more than offset by increasing rate as a result of improving overall industry fundamentals and our own improving fundamentals within our portfolio. I think some of that is -- comes from the competitive framework when the pie is getting bigger, it's easier to price with more confidence. You don't have to worry about the only way to grow is to take business from my competitor, which is the environment we've been living in the last 2 years to 3 years. And it does take time for that confidence level to improve, and that's what we've started to see. So I think from an underlying demand perspective, I think it's going to continue to track GDP. We know where supply is going to be. I mean it's going to be well south of 1%. And right now, it's running less than 0.5% on a net basis. So I think that's the fundamental setup that's good. And what will vary is how quickly do we increase confidence, how quickly do the compression nights increase, that will vary by market based upon what's going on in any individual market. And how does it change the behavior in terms of the mix that we have, shifting that mix from discounted channels, which we went deep into to build occupancy in the last few years and coming out of that and pushing less of that and pushing more of the higher-rated channels. So Ray, I don't know if you have anything to add to that, but that's kind of the way we think about what's going on. Raymond Martz: And Aryeh, clearly, there are a lot of benefits this year. And look, our portfolio benefited from the Super Bowl in San Francisco, which we talked about. But we also had some headwinds this year. I take San Diego. San Diego year-to-date, RevPAR is negative. And that's because of a very weak convention calendar. We have 120,000 less convention room nights in San Diego year-to-date than we did last year. But that reverses in '27 and Boston also improves. So although we have some benefits from some of the calendar items, we also had a bunch of headwinds. And I know right now, World Cup is getting a lot of attention with the demand, and it certainly helped some of the markets in the U.S. and helped the U.S. as a whole. We talked about it's more marginal. But as we get to talk about '27 in the setup, we feel really good because some of these headwinds will turn to tailwinds for us in several of our markets. Operator: Our next question comes from the line of Rich Hightower with Barclays. Richard Hightower: I want to dig into the kind of upside from redevelopments and some of the resort properties that are still on the path to recovery. So I didn't get a chance to compare sort of the before and after between the latest investor deck and kind of what came before. But does anything about sort of 2Q strength and what's still very clearly optimism about the second half and beyond, did that change the underlying sort of recovery trajectory from recent redevelopments? And then how much of that recovery path is predicated on macro and kind of basic demand drivers versus, let's say, property level execution? Jon Bortz: Sure. So I think the benefit that we saw from less sensitivity to price increases in the second quarter applied pretty much throughout the portfolio. And our redeveloped properties were able to take advantage of that. And part of the upside that has remained in those properties comes from both rate and occupancy share gain. And so we're seeing them, particularly Newport, Estancia as examples, continuing to increase their share in the market, not to a stabilized place yet, but there's certainly -- it's always easier to gain share when things are good, Rich. than when it's difficult. No different than the conversation -- the discussion I was just having about when the pie is getting bigger, it's always easier to increase pricing. And so I don't know that the pace of the gain has accelerated in a material way in terms of recovery of the next $4 million to $6 million of redevelopment. But I do think we were encouraged by what we saw in the second quarter throughout all of the resorts and that would include the properties that we redeveloped. So we're very encouraged by the progress they're making. We're -- as you know, outside of the redevelopments, the bridge that we laid out really doesn't include increases in performance at the resort level that it wasn't meant to. It wasn't meant to say resorts wouldn't improve. It meant to say that's going to be more macro related. And I think overall, back to your question of execution, we always have varying levels of execution within our portfolio. We highlighted some challenges in D.C. in our properties there with leadership changes that have happened. And as it relates to the resorts, I mean, execution does matter. We have great execution right now going on at most of the properties, particularly Newport and Estancia within the portfolio. And we still have work to do at Jekyll Island, even though we're encouraged by the pace of further out group bookings at that property. Raymond Martz: And Rich, this provides more context, which I'm sure you look at post earnings season when your life gets a little more manageable here. But we talked about Estancia and Newport because those are the most recent redevelopments, and that's on track for those projects getting their ROIs. And we still have -- we identified $6 million of upside from those projects. But just as a reminder, the projects that we started back in 2018, 2019, which these things are multiyear, this is where we invested $270 million of capital. We've generated over $40 million of ROI from those projects. So we just want to make sure I underscore that these are real achievements that we're gaining. That's why we -- our EBITDA has grown. And as Jon pointed out, what we really don't include is really the further upside we're experiencing in our resorts. But that, again, led the core of the portfolio this quarter. We're really excited about it. So we provide a lot of good detail in the presentation. I encourage you to look at it. We feel confident about it, and we've -- the results have proven itself. Operator: Our next question comes from the line of R.J Milligan with Raymond James. R.J. Milligan: So along the same lines of some of the questions that have already been asked, but Jon, obviously, a good problem to have. You mentioned difficult comps for next year. You highlighted some of the drivers for RevPAR growth in 2027 for the industry and then some specific drivers for Pebblebrook. I think you guys are trending about 300 basis points ahead of the industry in terms of RevPAR growth so far this year. Given the puts and takes for Pebblebrook next year and the difficult comps, how do you expect that spread to trend in '27? Raymond Martz: Well, another good question, another difficult one. Look, the 300 is not a long-term achievable spread. And historically, I think we've run anywhere from 50 to 100 basis points better than the industry overall. And I think the -- early on, we tend to do better for a number of reasons. Sometimes the markets we've been in have been hit harder like this one. So the recovery in San Francisco, the recovery in L.A. and the recoveries in Portland and Chicago examples, they're coming from very low levels. So there's a lot to regain in those markets. The fires God, let's hope we don't have more of them, although it seems to be an increasing issue around the world. We see what's going on in Europe, some of the fires going on in the Midwest here. Fortunately, we're not seeing that in Southern California at this point in time. But it's going to be a future part of life. But that's an easy comparison for the first half for L.A., and that's part of that higher 300 basis points than maybe what's normal on a go-forward basis. So I do think we should run 50 to 100 basis points higher. I think having Super Bowl in L.A. in '27 will be helpful. And actually, there's a lot of things going on in L.A. next year, fortunately, which should help with the recovery there. And then, of course, we have the Olympics in '28, which should be a very major lift in that market. And then in '29, we're going to have a little bit of a hangover from L.A. And we don't have a clear enough view into all of our other markets in '29 right now to see if they would offset that, but that's where I would say that the Olympics will be a more difficult one in terms of comparisons to overcome. Operator: Our next question comes from the line of Jamie Feldman with Wells Fargo. James Feldman: So you achieved RevPAR about 350 basis points above the high end of your guide in 2Q, but expenses were still within your original guidance range for the quarter. Can you talk about how you're able to achieve that favorable flow-through and how we should be thinking about further expense improvements into the back half of the year? Raymond Martz: Sure. Sure, Jamie. Well, it's something we're really proud of our hotel teams and our asset managers. And I know we talk about it each quarter, and it's not just talk, it's results. We're excited to the fact that we're able to keep these expenses at much lower levels. It's multiples. We -- through our efficiency studies, we have fewer FTEs on a per occupied room basis than we did pre-COVID. There's a lot of factors there. We're using technology more. We're using other areas that certainly better. So that's how we're able to have our per occupied cost growing less than inflation at 2%. And then we'll start getting the additional benefits on savings like property insurance and other areas. So you shouldn't assume that we're going to have that same expense growth each quarter. There's all other factors that could go on, but we feel good about it. And it does show that at these -- even lower revenue growth levels, we're still able to push margins and expand. So we feel that this is multiyear. We're just scratching the surface in a lot of these initiatives, and we feel good about it. But again, we think our hotel teams and our asset managers are doing a heck of a job finding more efficiencies every day. Operator: Our next question comes from the line of Floris Van Dijkum with Ladenburg Thalmann. Floris Gerbrand Van Dijkum: Jon, you mentioned something about reducing Pebblebrooks' reliance on discounted channels. Presumably, you're talking about OTAs. Maybe if you could just remind us what the historical percentage of your demand came from OTAs, where that is now? And is there a difference in urban versus resorts in terms of the reliance on OTAs. I'm thinking in particular, you've got this massive potential upside in occupancy ramp still in urban. I would imagine you probably are maybe more reliant on OTAs to help fill that. But if you can give us a little bit of color on that, that would be great. Jon Bortz: Sure. I'm going to talk in general. I'll leave Ray to talk about the OTA percentages. But I think in general, when we talk about fewer discount channels, it goes well beyond the OTAs. It has to do with wholesale channels that we use, where you're selling -- where you're giving them a lower, I'd say, highly discounted rate, maybe up to 25% or 30%, and they're filling it with small to medium-sized tour groups, as an example, through wholesale channels. And it involves some other channels, Crew in many cases, not all cases, is it lower rated, but in some cases, it can be a very low rated -- we tend to pick crew up in a down cycle, and we tend to slowly reduce our crew as the cycle improves and the other demand channels pick up. So those would be some other areas. And then as it relates to resort and urban, we tend to do more discounting and OTA use at our urban properties than we do -- our independent urban properties, in particular, than we do at our independent resorts. But Ray, if you want to talk about the general numbers? Raymond Martz: Yes. So Floris, on a general basis in our transient side, we have about 25% of our mix here comes from OTAs with our brands, that's lower, about 12% to 13%. Our urban lifestyle hotels that's in about, call it, about the 20% to 30% level. And then our resorts are in the 20% to 23% level. So it's a lower level there because the resorts tend to be a little more of a unique buying experience. People rely less on the OTAs. And actually, we have a high number of direct bookings on the resort side because of the premium resorts and experiences. So we'll continue to push that, whether it's technology and looking at that. I know there's a lot of efforts going on there between all the LLMs and making our hotels appear better, which our teams are working on. But it's something we manage and all of our teams do. But just to be clear, all OTA business isn't negative. OTA business positioned in a proper manner in a proper time can be a benefit. It's just when a hotel team relies too much on the OTAs and not go out and find a direct business or other channels, that's when it's more of a challenge. So you really have to take each property on a case-by-case basis and not say any OTA business is negative. I know that maybe brands have a different perspective of that because of their focus. But for us, we're about what's the net RevPAR and business being generated and OTAs are part of the mix. Operator: Our next question comes from the line of Chris Darling with Green Street. Chris Darling: Jon, I hoping if you could elaborate on just your broad capital allocation priorities given the meaningful run-up in your share price this year. I appreciate you still trade at a discount relative to the internal estimate of NAV, but that gap has narrowed pretty substantially. So just wondering if your thinking may have evolved. Jon Bortz: Sure. Well, our capital allocation strategy is focused on 2 things. It's creating value for the shareholders and driving growth in cash flow per share. Presumably, those 2 are linked over the long term. So while the arbitrage opportunity has clearly for the moment, gone down, the way we look at it is there continues to be a significant discount as we sell assets within the NAV range, and we have continued to do that, using those proceeds opportunistically at the right time to buy our stock back, to buy our preferred securities back at a material discount to pay down debt related to the EBITDA that we're selling. I think those all continue to be the best use of our capital. I don't think we're ready prepared or frankly, it's not the right use of capital to be out buying new assets because we can buy our existing assets at a much more significant discount than the market values. So while the arbitrage opportunity has shrunk for now, keep in mind that NAV, as an example, it's not static. As operating performance improves, we would expect these values to go up over time. And then we'll see how the stock performs. And as we all know, these stocks tend to be on a kind of a random walk in the near term. So I don't think our allocation strategies have changed at all, but we have to sharpen our pencils because the arbitrage opportunity is not as significant as it was a few months ago. Operator: Our next question comes from the line of Jack Armstrong with Wells Fargo. Jack Armstrong: Can you take us through some of the moving pieces that brought you to raise your NAV estimate and spend some time talking about how closing the discount to your NAV is changing the way you're thinking about allocating incremental capital once we get to the convert in December? Raymond Martz: Sure, Jack. Yes, we updated our NAV presentation. The overall gross value did not change, but some individual markets did. For example, resorts went up just because what we're seeing in the transaction market, as Tom alluded to earlier, is very constructive and pricing continues to be healthy there. We took down a couple of... Thomas C. Fisher: And operating performance continue to go up. Raymond Martz: And operating performance continue to go up as evidenced by our quarter and how strong the resort segment has been and continues to be. Some markets in San Francisco were also brought up just because of, again, the performance of that market. You've seen some trades in there, which obviously helps affirm the values. A couple of markets we took down were Washington, D.C. because of the performance, Los Angeles nudge as well as the Boston and San Diego. But overall, the gross values did not change on that side. What did change is we have more cash -- we have less preferred through buybacks, and we have less shares through the buyback. So what really moved is on that side of it, we moved the overall value up, and that's what our NAV went from $23.50 last quarter up to $24.50. And as we know, we'll continue -- we look at this every -- pretty frequently, and we'll see what it entails going forward. And then the capital allocation decision, we just responded to that question there. So as Jon said, we'll continue to be opportunistic and disciplined here as we have. But certainly, having the free cash flow that we have in place provides us with a lot of flexibility to pull a lot of levers, whichever is opportunistic at the time. Operator: We have reached the end of the question-and-answer session. Mr. Bortz, I'd like to turn the floor back over to you for closing comments. Jon Bortz: Well, thanks, everybody, for participating. Good luck the rest of the quarter. I hope you have great summers, and we'll be back to update you again on our performance come October. And I know we'll see many of you between now and then. Thanks so much. Operator: Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Pebblebrook Hotel Trust. The Motley Fool has a disclosure policy. Pebblebrook Hotel Trust (PEB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Pebblebrook Hotel Trust (PEB) just reported its second quarter 2026 results, alongside updated guidance, giving investors fresh data on profitability trends and expectations for the rest of the year. See our latest analysis for Pebblebrook Hotel Trust. Recent earnings and guidance have come alongside strong momentum in Pebblebrook Hotel Trust's share price, with a 90 day share price return of 35.65% and a year to date share price return of 65.37%, while the 1 year total shareholder return of 97.51% contrasts with a 5 year total shareholder return that is still down 13.22%. If this kind of rebound has your attention, it could be a good moment to see what else is moving and check out 18 top founder-led companies Pebblebrook Hotel Trust has swung back into profit and the stock has almost doubled over 12 months, yet the 5 year return is still negative. Does that mix of recovery and scars still skew the risk reward toward buyers, or has the easy upside already gone? The most followed narrative puts Pebblebrook Hotel Trust's fair value at $16.25, compared with the last close at $19.10. This sets up a clear valuation gap for investors to weigh. Read the complete narrative. The headline number is only part of the story. Behind that $16.25 fair value are assumptions around modest revenue growth, a sharp margin shift and a lower future earnings multiple. Investors may want to consider which factors matter most and how they compare with today's price. Result: Fair Value of $16.25 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Pebblebrook Hotel Trust still faces real pressure from higher labor costs and heavy exposure to urban markets, which could weigh on margins and future occupancy trends. Find out about the key risks to this Pebblebrook Hotel Trust narrative. The analyst narrative suggests Pebblebrook Hotel Trust is 17.5% overvalued at $19.10 versus a $16.25 fair value. The preferred P/S lens tells a different story. PEB trades at 1.4x sales, compared with 4.6x for the global Hotel and Resort REITs industry and a 1.9x fair ratio estimate. That gap points to meaningful valuation risk if sentiment shifts back to earnings, but also some cushion if markets continue to focus on revenue multiples instead. Which signal do you put more weight on right now? For a closer look at how this pricing compares with peers and the fair ratio estimate, See what the numbers say about this price — find out in our valuation breakdown. If the mix of optimism and caution around Pebblebrook Hotel Trust feels hard to balance, now is a good time to look through the numbers yourself and decide where you stand. To see how the positives stack up against the concerns in one place, check out the 2 key rewards and 1 important warning sign If you are considering your next steps after reviewing Pebblebrook Hotel Trust, you may want to look at additional options. Use the Simply Wall Street Screener to explore other opportunities before the market does. Target resilient balance sheets by scanning companies on the solid balance sheet and fundamentals stocks screener (45 results) Look for potential mispricing in higher-quality companies by reviewing the 55 high quality undervalued stocks Identify early stage opportunities with stronger fundamentals using the 21 elite penny stocks with strong financials This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PEB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Pebblebrook Hotel Trust? Here are five stocks we like better. Pebblebrook exceeded Q2 guidance, with same-property hotel EBITDA rising 7.1% to $123.3 million and adjusted FFO reaching $0.68 per share. RevPAR increased 6.5%, driven primarily by a 4.7% gain in average daily rates. Resorts and San Francisco led growth: resort RevPAR climbed 12% and San Francisco RevPAR rose 16%, while weaker performance in Washington, D.C., and downtown San Diego weighed on parts of the urban portfolio. The company raised its full-year outlook for same-property RevPAR growth to 4.5%-5.5% and adjusted FFO to $1.69-$1.76 per share, supported by improving July trends, asset sales and stronger liquidity. 7 best hotel REITs to buy now Pebblebrook Hotel Trust (NYSE:PEB) reported second-quarter results that exceeded the high end of its outlook, driven by pricing gains, strong resort performance and continued recovery in San Francisco, while raising its full-year outlook for revenue per available room and adjusted funds from operations. Same-property hotel EBITDA increased 7.1% year over year to $123.3 million, which Co-President and Chief Financial Officer Raymond Martz said was $6.6 million above the high end of the company’s outlook. Adjusted EBITDA totaled $116.2 million, while adjusted FFO reached $0.68 per diluted share, exceeding the high end of guidance by $0.06. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Portfolio occupancy rose about 130 basis points to 79.4%, average daily rate increased 4.7%, and RevPAR grew 6.5%. Martz said nearly three-quarters of RevPAR growth came from higher rates rather than occupancy gains, reflecting greater pricing confidence as hotel demand and compression increased. Resorts were the company’s principal growth driver during the quarter. Resort RevPAR rose 12%, while total RevPAR increased 10.9% and resort hotel EBITDA grew 18.5%. Resorts accounted for roughly $16.5 million of the portfolio’s $18.3 million revenue increase, according to Martz. → Microsoft Just Flipped the AI Spending Narrative Overnight LaPlaya benefited from its post-hurricane construction ramp-up, with occupancy rising by more than 11 points, RevPAR increasing 33.9%, and EBITDA climbing 28.8%. Paradise Point in San Diego posted 22% RevPAR growth and EBITDA growth of more than 40%. Newport and Estancia, two redeveloped resort properties, also posted sizable gains. Newport’s RevPAR rose 20.3%, supported by a 13.5% ADR increase, while EBITDA increased almost 26%. Estancia recorded 22.8% RevPAR growth and 54.7% EBITDA growth. Martz said the company identified $6 million of upside from those two recent redevelopment projects and said their returns remain on track. → Carrier Earnings Could Send the Stock to a New All-Time High San Francisco was Pebblebrook’s strongest urban market. Occupancy increased nearly 500 basis points and ADR rose almost 9%, resulting in 16% RevPAR growth and 24.6% hotel EBITDA growth. The company said Snowflake and Databricks citywide events in June helped offset the absence of the RSA citywide, which shifted to March. Year to date, EBITDA at the company’s seven San Francisco hotels increased by more than $13 million, or 110%, from the prior year. Los Angeles RevPAR rose 8.6% and hotel EBITDA increased nearly 14%, with year-to-date EBITDA up approximately $6 million, or 73%. Performance was weaker in certain urban markets. Downtown San Diego RevPAR declined 9.1% against a difficult citywide comparison, while Washington, D.C., RevPAR fell 9.9% amid weak government-related travel demand and property-level leadership transitions. Across the urban portfolio, RevPAR rose 4.1%, but total RevPAR increased only 0.8% and hotel EBITDA declined 1%. Transient demand led the quarter, with transient revenue rising nearly 10% on a 7% increase in ADR. Group revenue declined about 2%, while corporate group revenue was essentially flat. Martz said the group softness reflected convention calendar rotation rather than a broad pullback in demand. Urban banquet and catering revenue declined approximately 20%, concentrated in markets with weaker citywide calendars and World Cup-related disruption to group business. In contrast, resort food-and-beverage revenue grew nearly 11%, and resort banquet and catering revenue increased more than 16%. The company converted 4.8% total revenue growth into 7.1% same-property hotel EBITDA growth. Same-property total expenses increased 3.8%, and EBITDA margin expanded 67 basis points to 30.6%. Rooms expense rose 3.1%, while energy expense increased 2.7% and was flat year to date. Total expenses per occupied room rose 2%. Martz also said Pebblebrook renewed its property insurance on June 1 at premiums about 27% below the prior year, or approximately $6 million lower. He attributed the result to a more favorable insurance market, program design and investments to harden weather-exposed assets. Chairman and Chief Executive Officer Jon Bortz said the World Cup produced a modest benefit to room revenue, estimated at $1.5 million to $2.5 million, or roughly 60 to 100 basis points of quarterly RevPAR. However, the added demand was largely offset by corporate group and transient customers that avoided higher rates and booking restrictions. The World Cup’s net room benefit was primarily rate-driven rather than occupancy-driven, Bortz said. The event also reduced food-and-beverage revenue in match markets, particularly banquet and catering sales. Pebblebrook estimated the total net hotel EBITDA benefit from the World Cup at $500,000 to $1 million. Management said July started stronger than anticipated, with preliminary results through July 25 indicating RevPAR growth of 7% to 8%. Bortz cited strong short-term pickup, corporate travel growth, accelerating leisure demand, less discounting and reduced reliance on lower-priced wholesale channels. During the quarter, Pebblebrook sold the Chamberlain West Hollywood Hotel for $43.5 million. It used $26.1 million of the proceeds to retire $33.7 million of preferred shares at a 23% discount, a transaction Martz said generated approximately $7.6 million of immediate value accretion and eliminated more than $2 million in annual preferred distributions. Over the past eight months, the company sold three hotels for just under $160 million at an aggregate 15.4-times EBITDA multiple and a 4.6% net operating income cap rate. Pebblebrook also repurchased 0.9 million common shares in the first half at an average price of $13.62 and retired 1.5 million preferred shares at an average 23% discount to liquidation preference. Net debt to trailing 12-month corporate EBITDA declined to 5.3 times from 5.5 times at the end of the first quarter. The company ended the quarter with $270 million in cash, $641 million of revolver availability and $90 million of delayed-draw term capacity, totaling $1 billion of liquidity. For the third quarter, Pebblebrook forecast same-property RevPAR growth of 1% to 3%, same-property hotel EBITDA of $100.5 million to $104.5 million, adjusted EBITDA of $92.5 million to $96.5 million, and adjusted FFO of $0.48 to $0.52 per diluted share. For the full year, the company raised its same-property RevPAR outlook to growth of 4.5% to 5.5% and projected same-property EBITDA growth of 8.2% to 10.5%. Its adjusted FFO outlook was increased to $1.69 to $1.76 per diluted share. Bortz said management remains encouraged by industry fundamentals and limited hotel supply, but continues to account for short booking windows and uncertainty related to geopolitical, policy and macroeconomic developments. Pebblebrook Hotel Trust (NYSE:PEB) is a real estate investment trust specializing in premium, high-barrier-to-entry hotel properties in gateway markets across the United States. Established in 2009, PEB focuses on lifestyle-oriented lodging assets that cater to business and leisure travelers seeking elevated experiences. The company's investment strategy emphasizes select-service and full-service hotels with established brands and prime urban or resort locations. PEB's portfolio comprises more than 30 properties in major metropolitan areas including New York City, Los Angeles, Chicago, Miami and San Francisco. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pebblebrook Hotel Trust Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Same-Property Hotel EBITDA: Increased 7.1% to $123.3 million, exceeding the high end of the outlook by $6.6 million. Adjusted EBITDA: $116.2 million, $6.2 million above the high end of the outlook. Adjusted FFO per Diluted Share: $0.68, $0.06 above the high end of the outlook. Same-Property Occupancy: Increased approximately 130 basis points to 79.4%. Same-Property ADR: Grew 4.7%. Same-Property RevPAR: Increased 6.5%. Same-Property Total RevPAR: Climbed 4.7%. Same-Property Total Revenue Growth: 4.8%. Same-Property Total Expenses: Increased 3.8%. Same-Property EBITDA Margin: Expanded 67 basis points to 30.6%. Resort RevPAR: Increased 12%. Resort Total RevPAR: Climbed 10.9%. Resort Hotel EBITDA: Up 18.5% with 216 basis points of EBITDA margin expansion. Urban RevPAR: Increased 4.1%. Urban Total RevPAR: Increased 0.8%. Urban Hotel EBITDA: Declined 1%. San Francisco RevPAR: Increased 16%. San Francisco Hotel EBITDA: Increased 24.6%. Los Angeles RevPAR: Up 8.6%. Los Angeles Hotel EBITDA: Up almost 14%. Net Debt to Trailing 12-Month Corporate EBITDA: Declined to 5.3 times from 5.5 times at the end of Q1. Total Liquidity: $1 billion, consisting of $270 million of cash, $641 million of revolver availability, and $90 million of delayed draw term capacity. Full Year 2026 Same-Property RevPAR Growth Outlook: 4.5% to 5.5%. Full Year 2026 Same-Property EBITDA Growth Outlook: 8.2% to 10.5%. Full Year 2026 Adjusted FFO Outlook: $1.69 to $1.76 per diluted share. Warning! GuruFocus has detected 6 Warning Sign with PEB. Is PEB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Pebblebrook Hotel Trust (NYSE:PEB) exceeded the high end of its outlook across all key earnings metrics for the second consecutive quarter. Resort RevPAR increased 12%, with strong performance from redeveloped properties like Newport and Estancia, which continue to gain market share. San Francisco urban market showed strong recovery with RevPAR up 16% and hotel EBITDA up 24.6%, driven by major events and corporate travel. Disciplined capital allocation, including selling hotels at high multiples and repurchasing preferred shares at a 23% discount, generated significant value accretion. Property insurance premiums decreased by 27% year-over-year, providing a $6 million cost tailwind. Urban markets like downtown San Diego and Washington, DC, experienced RevPAR declines of 9.1% and 9.9%, respectively, due to weak convention calendars and government travel. World Cup events provided only a modest net benefit of $500,000 to $1 million in hotel EBITDA, as group and transient business was displaced. Group revenue declined approximately 2% portfolio-wide, with urban banquet and catering revenue down 20% due to convention rotation and event displacement. The company faces ongoing risks from geopolitical instability, policy changes, and potential government shutdowns that could impact travel demand. Booking windows remain short, limiting visibility into future performance and requiring a cautious outlook for the second half of 2026. Here are the key highlights from the Pebblebrook Hotel Trust (NYSE:PEB) Q2 2026 earnings call, presented as Q&A pairs. Q: Can you elaborate on the drivers of the better-than-expected pickup you are seeing, which seems to be a key assumption for the second half of the year?A: Jonathan Bortz, Chairman and CEO: The drivers have been fairly broad but are clearly led by the transient side, including both corporate and leisure transient demand. Group stability and predictability in attendance and spend are also positive. Another key driver is our increased ability to drive pricing higher through less discounting and promotions, focusing on higher-rated channels, and reducing reliance on lower-priced wholesale channels. Q: What do you think the underlying RevPAR growth is for the first half, adjusted for unique tailwinds like the World Cup and calendar shifts?A: Jonathan Bortz, Chairman and CEO: Underlying demand growth seems to be tracking in the 1.5% to 2% range, which is closely aligned with GDP growth. The key change in an upcycle is what happens with rate. The increased rate from events like the World Cup is likely to be more than offset by increasing rate from improving industry fundamentals. As the pie gets bigger, it's easier to price with more confidence, a shift from the environment of the last few years. Q: How did the upside from redevelopment and the recovery trajectory at your resort properties change following the strong second quarter?A: Jonathan Bortz, Chairman and CEO: The benefit from less price sensitivity applied throughout the portfolio, and our redeveloped properties like Newport and Estancia were able to take advantage of that. They continue to gain share, and it's easier to do so when the market is good. While the pace of recovery for the next $4-6 million of redevelopment upside hasn't materially accelerated, we were very encouraged by the progress. The bridge we laid out for recovery doesn't include increases at the resort level, which will be more macro-related. Q: You achieved RevPAR well above the high end of your guidance, but expenses were still within the original range. How were you able to achieve that favorable flow-through?A: Raymond Martz, Co-President and CFO: This is a result of our hotel teams and asset managers' hard work on efficiency. We have fewer FTEs on a per occupied room basis than pre-COVID due to technology and other initiatives. Our property-level costs are growing at less than inflation (2%). We also have additional benefits from savings like property insurance. We feel this is a multi-year trend of margin expansion, even at lower revenue growth levels. Q: You mentioned reducing reliance on discounted channels. Can you provide more color on the historical percentage of demand from OTAs and the difference between urban and resort properties?A: Raymond Martz, Co-President and CFO: Overall, about 25% of our mix comes from OTAs. This is lower for our branded hotels (12-13%) and resorts (20-23%), and higher for urban lifestyle hotels (20-30%). Resorts rely less on OTAs due to their unique buying experience and high direct bookings. However, not all OTA business is negative; it's about managing the mix and not relying on it too heavily. The focus is on net RevPAR and business generation. Q: Given the meaningful run-up in your share price, has your thinking on capital allocation priorities evolved?A: Jonathan Bortz, Chairman and CEO: Our strategy remains focused on creating value and driving per-share cash flow growth. While the arbitrage opportunity has shrunk, there is still a significant discount as we sell assets within our NAV range. Using those proceeds to buy back stock or preferred shares at a discount, or to pay down debt, remains the best use of capital. We are not prepared to buy new assets when we can buy our existing assets at a more significant discount. NAV is not static and will increase with performance, so we will continue to be opportunistic. Q: Can you take us through the moving pieces that led you to raise your NAV estimate?A: Raymond Martz, Co-President and CFO: The overall gross property value did not change, but individual market values shifted. Resort values went up due to constructive transaction markets and strong performance. San Francisco was also raised. We took down values in Washington DC, Los Angeles, Boston, and San Diego. The main driver of the NAV increase from $23.50 to $24.50 was the reduction in shares and preferred shares through buybacks, combined with higher cash balances. Q: What are you seeing in the transactions market?A: Thomas Fisher, Co-President and CIO: The market continues to be more constructive. Capital follows performance, and we are seeing more transactions, larger deals, and more investor depth and conviction. The debt markets remain attractive. However, the market is bifurcated, with activity trending towards luxury and resort assets, and assets in markets with significant growth potential. Q: Do you find that local convention and visitors bureaus are taking advantage of the positive publicity from the World Cup to promote their cities internationally?A: Jonathan Bortz, Chairman and CEO: Yes. We've seen organizations like SF Travel and the San Diego Authority increasingly put more money and effort into international sales trips and marketing. For example, SF Travel has a major marketing effort in Canada, betting that Canadians are ready to return after positive World Cup experiences. The positive word of mouth is seen as a catalyst. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BETHESDA, Md., July 29, 2026--(BUSINESS WIRE)--Pebblebrook Hotel Trust (NYSE: PEB): Note: See tables later in this press release for a description of Same-Property information and reconciliations from net income (loss) to non-GAAP financial measures used in the table above and elsewhere in this press release. The sector-low weighted average interest rate is based on Pebblebrook’s analysis of EDGAR filings to date for all listed lodging REITs. Second Quarter and Year-to-Date Highlights "The second quarter’s broad-based outperformance demonstrates the improving earnings power of our portfolio," noted Mr. Bortz. "Demand across our resorts remained very strong, driven by healthy growth in leisure transient and business group, which allowed the resorts to achieve a significant 7.5% increase in average prices. We also experienced ongoing strength across many of our urban markets, where business transient demand delivered healthy growth and leisure demand continued to recover. "San Francisco was a highlight for the quarter, with the city’s recovery spanning multiple demand segments. Growth accelerated through the second quarter, driven by strength from corporate and technology-related conventions, improving business transient demand consistent with the market’s record-setting office leasing trends, and continued leisure momentum as tourism returns to the city. San Francisco’s positive trajectory is one of the many reasons we believe the favorable lodging cycle currently unfolding supports a multi-year recovery, driven by improving hotel demand, a continued rebound in both group and business transient travel, and historically low new supply growth expected to persist for several years. Together with a robust calendar of major events across our markets through 2028, these dynamics reinforce our belief in a sustained period of favorable lodging fundamentals." The quarter was led by higher-rated transient demand, with transient revenue increasing nearly 10% on 7% ADR growth. Group revenue declined slightly, reflecting weaker convention calendars in San Diego and Boston, rather than a pullback in corporate demand. This mix shift caused Total RevPAR to trail RevPAR, as urban banquet and catering revenue declined 20%, concentrated where citywide calendars were the weakest and in cities with World Cup matches. This was partly offset by strong spending at the Company’s resorts, including nearly 11% growth in Same-Property resort food & beverage revenue. "While World Cup-related demand provided a modest rate benefit around match dates at our Boston and San Francisco hotels, as we expected, it was not a meaningful driver of incremental demand in our markets during the second quarter, as it generally displaced other normally recurring demand," advised Mr. Bortz. The Company estimates that World Cup-related demand contributed approximately 60 to 100 basis points of incremental RevPAR growth and $0.5 to $1.0 million of Hotel EBITDA during the second quarter. The Company’s strategic operating efficiency initiatives and continued expense discipline again converted healthy revenue growth into stronger profitability. Same-Property Total Revenues increased 4.8%, well above the high end of the Company’s Outlook, while Same-Property Total Expenses rose just 3.8%. This drove Same-Property Hotel EBITDA margins to 30.6%, an expansion of 67 basis points. On a per-occupied-room basis, total expenses were held to a 2.0% increase, while expenses before fixed costs grew just 2.2%. This demonstrates improving operating leverage, as both fixed and semi-fixed costs are spread across more occupied rooms, while productivity, cost-control, technology, and other efficiency initiatives limit variable expense growth. The Company also completed its property insurance renewal on June 1, 2026, securing a 27% premium reduction, or $6.1 million in annual savings, versus the prior year’s program—a result that was better than anticipated. The renewal outcome reflected favorable insurance-market conditions, disciplined program design, and recent asset-hardening investments completed last year at weather-exposed properties. The lower premiums provide a visible expense reduction tailwind through May of next year. For the first half of 2026, Same-Property Total Revenues climbed 7.2%, while Same-Property Total Expenses grew just 4.7%, driving 175 basis points of EBITDA margin expansion and 14.5% growth in Same-Property Hotel EBITDA. These results demonstrate the compounding benefit of improving demand, stronger pricing, disciplined expense controls, and widespread efficiency initiatives across the Company’s portfolio. Year-to-date, Adjusted FFO per diluted share increased 23.8% and Free Cash Flow per diluted share grew 68.9%, as strong hotel operating growth, lower capital investments, debt reduction, and common and preferred share repurchases more than offset the combined impact of the lost Hotel EBITDA from the three asset sales completed since Q4 2025 and the non-recurring business interruption income proceeds received in the first half of 2025. Update on Strategic Dispositions On May 27, 2026, Pebblebrook completed the sale of the 115-room Chamberlain West Hollywood Hotel in Los Angeles, California for $43.5 million, of which the Company accepted $33.7 million of preferred share liquidation preference at $26.1 million of agreed-upon value, thereby retiring these shares at a 23% discount. Over the past eight months, the Company has completed three property sales at attractive private-market valuations totaling nearly $160.0 million, representing an aggregate 15.4x EBITDA multiple and a 4.6% NOI capitalization rate, assuming a 4.0% capital reserve on total hotel revenues. These transactions underscore the Company’s disciplined execution at valuations consistent with its private-market NAV and well above its public-market valuation, highlighting the portfolio’s embedded value. Capital Investments During the second quarter, the Company invested $12.5 million in capital improvements across its portfolio, including the substantial completion of guestroom renovations at Chaminade Resort & Spa and Revere Hotel Boston Common. Year-to-date, capital investments across the portfolio totaled $24.4 million. For 2026, the Company anticipates investing a total of $65 to $75 million, primarily for routine capital maintenance, select property refreshes, and a number of revenue-enhancing and operating cost reduction improvements. This significantly lower, normalized capital run-rate is an important tailwind in 2026, supporting higher discretionary free cash flow that can be utilized for debt reduction and opportunistic share repurchases. Balance Sheet and Share Repurchases The Company’s deleveraging trend continued in the second quarter, with net debt-to-trailing 12-month corporate EBITDA declining to 5.3x as of June 30, 2026, driven by continued EBITDA growth and disciplined net debt reductions. As of June 30, 2026, cash, cash equivalents, and restricted cash had grown to $270.4 million, with an additional $641 million of available capacity on the Company’s $650 million senior unsecured revolving credit facility and $90 million of available capacity on its senior unsecured 2031 term loan. Combined with the Company’s lower normalized capital investments, this enhanced balance sheet position increases financial flexibility for capital allocation decisions. The Company’s consolidated debt and convertible notes carry an estimated weighted-average interest rate of 4.1% and a weighted-average debt maturity of 2.7 years, with 98% of the debt effectively fixed and 98% unsecured. The remaining $350 million of 2026 convertible notes that mature December 2026 are fully funded through existing cash, expected free cash flow, and available term loan capacity, with no other maturities until 2028. During the second quarter of 2026, the Company repurchased 0.5 million common shares for $8.0 million, at an average share price of $14.77, bringing first half 2026 repurchases to 0.9 million shares at an average price of $13.62 per share. The Company also repurchased 1.5 million preferred shares for $28.6 million, including the preferred shares retired as part of the Chamberlain West Hollywood Hotel disposition, at an attractive 23% average discount to liquidation preference, reducing total outstanding preferred equity securities to $717.2 million. Common and Preferred Dividends On June 15, 2026, the Company declared a quarterly cash dividend of $0.01 per share on its common shares and a regular quarterly cash dividend for the following preferred shares of beneficial interest: $0.39844 per 6.375% Series E Cumulative Redeemable Preferred Share; $0.39375 per 6.3% Series F Cumulative Redeemable Preferred Share; $0.39844 per 6.375% Series G Cumulative Redeemable Preferred Share; and $0.35625 per 5.7% Series H Cumulative Redeemable Preferred Share. 2026 Outlook The second-quarter performance reinforced Pebblebrook’s key 2026 earnings drivers: continued strength and ramp-up across the resort portfolio, a broadening urban recovery led by San Francisco and Los Angeles, and the sustained benefits of the Company’s strategic operating initiatives. The Company has raised its 2026 Outlook to reflect the stronger-than-expected second-quarter results while maintaining its prior and prudent assumptions for the second half given short booking windows and broader macroeconomic, policy, and geopolitical uncertainty. The Outlook assumes no additional acquisitions or dispositions. Second Quarter 2026 Earnings Call The Company will conduct its quarterly analyst and investor conference call on Thursday, July 30, 2026, beginning at 9:00 AM ET. Please dial (877) 407-3982 approximately ten minutes before the call begins to participate. A live webcast of the conference call will also be available through the Investor Relations section of www.pebblebrookhotels.com. To access the webcast, click on https://investor.pebblebrookhotels.com/news-and-events/webcasts/default.aspx ten minutes before the conference call. A replay of the conference call webcast will be archived and available online. About Pebblebrook Hotel Trust Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 43 hotels and resorts, totaling approximately 10,900 guest rooms across 13 urban and resort markets. For more information, visit www.pebblebrookhotels.com and follow @PebblebrookPEB on X. This press release contains certain "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "assume," "plan," references to "outlook," or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections and forecasts, and other forward-looking information and estimates. Examples of forward-looking statements include the following: descriptions of the Company’s plans or objectives for future capital investment projects, operations, or services; forecasts of the Company’s future economic performance; forecasts of hotel industry performance; and descriptions of assumptions underlying or relating to any of the foregoing expectations including assumptions regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy and the supply of hotel properties, and other factors as are described in greater detail in the Company’s filings with the SEC, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise. For further information about the Company’s business and financial results, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company’s website at www.pebblebrookhotels.com. All information in this press release is as of July 29, 2026. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company’s expectations. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729530874/en/ Contacts Raymond D. Martz, Co-President and Chief Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330

BETHESDA, Md., June 15, 2026--(BUSINESS WIRE)--Pebblebrook Hotel Trust (NYSE: PEB) (the "Company") today announced that its Board of Trustees has authorized, and the Company has declared, a quarterly cash dividend of $0.01 per common share of beneficial interest, to be paid on July 15, 2026, to shareholders of record as of June 30, 2026 (the "Record Date"). The Board of Trustees also authorized, and the Company has declared, regular quarterly cash dividends on the Company’s preferred shares of beneficial interest as follows, each of which will be paid on July 15, 2026, to shareholders of record as of the Record Date: $0.39844 per 6.375% Series E Cumulative Redeemable Preferred Share; $0.39375 per 6.3% Series F Cumulative Redeemable Preferred Share; $0.39844 per 6.375% Series G Cumulative Redeemable Preferred Share; and $0.35625 per 5.7% Series H Cumulative Redeemable Preferred Share. About Pebblebrook Hotel Trust Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 43 hotels, totaling approximately 10,900 guest rooms across 13 urban and resort markets. For more information, visit www.pebblebrookhotels.com and follow @PebblebrookPEB. This press release contains certain "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "assume," "plan," references to "outlook" or other similar words or expressions. These forward-looking statements relate to the payment of the dividends. These forward-looking statements are subject to various risks and uncertainties, many of which are beyond the Company’s control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy and the supply of hotel properties, and other factors as are described in greater detail in the Company’s filings with the Securities and Exchange Commission, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. For further information about the Company’s business and financial results, please refer to the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company’s SEC filings, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which may be obtained at the Investor Relations section of the Company’s website at www.pebblebrookhotels.com. All information in this press release is as of June 15, 2026. The Company undertakes no duty to update the statements in this press release to conform the statements to actual results or changes in the Company’s expectations. View source version on businesswire.com: https://www.businesswire.com/news/home/20260615105627/en/ Contacts Raymond D. Martz, Co-President and Chief Financial Officer, Pebblebrook Hotel Trust - (240) 507-1330For additional information or to receive press releases via email, please visit www.pebblebrookhotels.com

Pebblebrook significantly beat expectations in Q1 — same-property hotel EBITDA rose 27.6% to $82.2M, adjusted EBITDA climbed 29.5% to $73.3M, and AFFO per diluted share doubled to $0.32. Market mix was polarized: San Francisco (+44.5% RevPAR) and Los Angeles (+31.5% RevPAR) led an urban recovery while Washington, D.C. (-24.1% RevPAR) and Boston lagged; resorts and out-of-room spending stayed healthy. Expense discipline and a stronger balance sheet supported the quarter — net debt/EBITDA fell to 5.5x, cash was $204.6M, and management repurchased >400,000 shares — and the company raised full-year RevPAR and same-property EBITDA ranges while remaining cautious on macro/geopolitical risks. Interested in Pebblebrook Hotel Trust? Here are five stocks we like better. 7 best hotel REITs to buy now Pebblebrook Hotel Trust (NYSE:PEB) reported first-quarter 2026 results that management described as “exceptional,” driven by broad-based revenue growth and tight expense control across its portfolio. On the company’s April 29 earnings call, Co-President and CFO Raymond Martz said results came in “well above the high end of our outlook across key earnings metrics,” while Chairman and CEO Jon Bortz characterized the quarter as a “blowout” on both the top and bottom line. Martz said same-property hotel EBITDA increased 27.6% year-over-year to $82.2 million, which he noted was $8.2 million above the high end of the company’s outlook. Adjusted EBITDA rose 29.5% to $73.3 million, also exceeding the high end of guidance by $9.3 million. Adjusted funds from operations (FFO) per diluted share doubled from the prior year to $0.32, which Martz said was $0.09 above the high end of expectations. → Meta Posted Its Best Sales Growth Since 2021—So Why Did Shares Fall? At the property level, Martz reported same-property occupancy increased 550 basis points, ADR rose 2.8%, and RevPAR climbed 11.8%. Total revenue increased 10.1% while same-property total expenses rose 5.6%, contributing to 327 basis points of hotel EBITDA margin expansion. Martz said more than half of incremental same-property revenue flowed through to hotel EBITDA, reflecting operating initiatives and investments in “revenue-generating amenities and venues.” Martz added that performance was widespread across the portfolio, with 32 hotels exceeding revenue forecasts and 34 exceeding GOP forecasts during the quarter. → Verizon’s Signal Strength: The Turnaround Call Is Loud and Clear San Francisco was a standout market, supported by the Super Bowl and a large citywide convention that shifted into the first quarter. Martz said all segments were “incredibly strong,” with RevPAR up 44.5% and hotel EBITDA more than tripling year-over-year, increasing by $11.6 million. Los Angeles also rebounded from “last year’s fire-related disruptions,” Martz said, with RevPAR rising 31.5% and occupancy increasing more than 16 points to 74.6%. He said the improvement was broad-based and helped by stronger leisure demand, improving entertainment-related activity, and the ramp-up of the renovated and rebranded Hyatt Centric Delfina in Santa Monica. Martz said the quarter’s L.A. same-property EBITDA increase “recaptured all of the EBITDA loss” experienced a year earlier due to the fires. → 5 Stocks to Buy in May Before the Next AI Surge Hits Across Pebblebrook’s urban portfolio, Martz reported RevPAR growth of 14.3%, Total RevPAR growth of 12.9%, and EBITDA growth of 55.1%. He cited San Diego urban hotels for 8.7% RevPAR growth, driven by a 900 basis point occupancy increase, and Chicago for RevPAR growth of 5.6%. Management said Washington, D.C. was the company’s most challenged market in the quarter, with RevPAR down 24.1% due to a “very difficult inauguration comparison” and continued weakness in government-related travel, though Martz said there were “some recent improvements.” Boston was also softer, with RevPAR down 3% due to a lighter citywide calendar, two major winter storms, and a rooms renovation at Revere Hotel Boston Common. Martz said the company expects both Washington, D.C. and Boston to improve in the second quarter given better event calendars. Pebblebrook’s resorts also posted a strong quarter. Martz said resort RevPAR increased 7.5%, Total RevPAR rose 6.7%, and EBITDA climbed 13.9%. He attributed results to resilient leisure demand, healthy on-property spending, favorable holiday timing, and the continued ramp-up of redeveloped assets, with some benefit from an earlier spring break that pulled demand into March. Martz cited several resorts with double-digit RevPAR gains, including Newport Harbor Island Resort, LaPlaya Beach Resort & Club, Skamania Lodge, Paradise Point Resort & Spa, San Diego Mission Bay Resort, and Estancia La Jolla Hotel & Spa. On revenue mix, Martz said out-of-room revenues increased 7.6% overall, with food and beverage revenue up 7.4%. Outlet revenues rose 10.2%, and banquets and catering increased 4.8%. CEO Jon Bortz later said the company has not seen any pullback in out-of-room spending, including in April, despite weak consumer confidence surveys, adding that guests “spend” when on property and want a strong experience. Martz emphasized expense control, noting total expenses rose 5.6% versus total revenue growth of 10.2%. He highlighted that food and beverage expenses increased 3.7% compared to 7.4% growth in food and beverage revenues, sales and marketing expenses (excluding franchise fees) grew 3.9%, and energy costs declined 2.8%. On a per occupied room basis, total expenses declined 2.8% and total expenses before fixed costs declined 3.2%. Addressing one-time impacts, Martz said the Super Bowl contributed about 215 basis points to same-property RevPAR and the Los Angeles recovery contributed another 285 basis points. Offsetting factors included winter storms, which reduced RevPAR by about 115 basis points, and the difficult inauguration comparison in Washington, D.C., which reduced RevPAR by another 105 basis points. Martz said that even after adjusting for those items, same-property RevPAR grew by roughly 9%. On capital, Martz said the company invested $11.9 million in the quarter, including guest room renovations at Chaminade Resort & Spa and Revere Hotel Boston Common, which are now “substantially complete.” For the full year, the company maintained expectations for capital investments of $65 million to $75 million. Martz also discussed the April 1 rebranding of Mondrian Los Angeles into The Valorian Los Angeles, Curio Collection by Hilton, saying franchise-related key money funded the changeover at no cost. In response to analyst questions, Bortz said the prior system “was just not delivering to the property at the level that one of the domestic major brands could deliver,” and that the combined operator and franchise cost under Curio is lower than the prior arrangement. Martz said Hilton had been “fantastic to work with” and the transition has been smooth so far. On the balance sheet, Martz said net debt to EBITDA declined to 5.5x from 5.9x at year-end. Pebblebrook ended the quarter with $204.6 million of cash and restricted cash and about $641 million of capacity on its revolver. The weighted average interest rate was 4.1%, with about 98% of debt effectively fixed and 98% unsecured. Martz said the company repurchased more than 400,000 common shares year-to-date at an average price of $12.11 per share. Management repeatedly pointed to geopolitical and macro uncertainty, including the ongoing conflict in the Middle East and potential implications for airline pricing, capacity, and inbound international travel. Martz said visibility has shortened somewhat since late March, but the company has not seen a material change in booking trends. Bortz said the company is “not seeing any negative impact on pace or bookings at this time,” but reiterated a “month at a time” approach given how quickly trends can shift. Bortz said Pebblebrook increased its full-year outlook for RevPAR and Total RevPAR growth by 75 basis points each, to: RevPAR growth of 2.75% to 4.75% Total RevPAR growth of 3% to 5% He said the company reflected the Q1 performance beat in its hotel performance assumptions while leaving the second quarter and the rest of the year unchanged from the prior outlook. Bortz added that the $10 million first-quarter hotel EBITDA beat was “fully passed along” into the company’s same-property EBITDA outlook at the year’s midpoint, resulting in a new forecast for same-property EBITDA growth of 5.2% to 8.6%. Management also discussed its early view of World Cup-related demand, with Bortz describing bookings as likely to be short-term and saying the company is currently contracted for about $1.9 million of group room revenue tied to teams, sponsors, and FIFA, with more than half in Boston. He said the company expects the event to be positive overall, mainly through higher average rates and increased non-room revenues, while keeping forecasts conservative. Pebblebrook Hotel Trust (NYSE:PEB) is a real estate investment trust specializing in premium, high-barrier-to-entry hotel properties in gateway markets across the United States. Established in 2009, PEB focuses on lifestyle-oriented lodging assets that cater to business and leisure travelers seeking elevated experiences. The company's investment strategy emphasizes select-service and full-service hotels with established brands and prime urban or resort locations. PEB's portfolio comprises more than 30 properties in major metropolitan areas including New York City, Los Angeles, Chicago, Miami and San Francisco. The article "Pebblebrook Hotel Trust Q1 Earnings Call Highlights" was originally published by MarketBeat.