Pebblebrook Hotel Trust Q2 hotel EBITDA rises on strong leisure, group demand at resorts

Overview

• U.S. hotel REIT's Q2 same-property hotel EBITDA rose 7.1% yr/yr

• Adjusted FFO per share for Q2 increased 4.6% yr/yr

• Company saw strong resort and San Francisco demand but urban DC and San Diego lagged

Outlook

• Pebblebrook Hotel Trust raises 2026 outlook after Q2 outperformance, maintains cautious assumptions

• Company sees 2026 Adjusted EBITDAre of $345 mln to $353 mln

• Pebblebrook expects 2026 Adjusted FFO per diluted share of $1.69 to $1.76

Result Drivers

• RESORTS AND SAN FRANCISCO - Company said Q2 growth was led by strong leisure and group demand at resorts and robust convention and business transient demand in San Francisco

• PRICING POWER AND DEMAND MIX - Higher transient demand and improved pricing drove RevPAR gains, while group revenue declined due to weaker convention calendars in some cities

• EXPENSE CONTROL - Expense growth was kept below revenue growth, supporting margin expansion, aided by a 27% reduction in property insurance premiums

Company press release: ID:nBw69w21Ta

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 4 "sell" or "strong sell"

• Wall Street's median 12-month price target for Pebblebrook Hotel Trust is $16.75, about 13.5% below its July 28 closing price of $19.37

Reuters Recommended Reads

• July 28 - American Assets Trust Q2 FFO per share slips amid occupancy and expense pressures

• July 28 - Extra Space Storage lifts 2026 FFO forecast on higher pricing, cost controls

• July 28 - REIT BXP raises 2026 FFO forecast amid return-to-office push

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)