Summary of Pebblebrook Hotel Trust Q1 2026 Earnings Call

1Key Financial Results and Metrics

Same Property Hotel EBITDA: Increased by 27.6% to $82.2 million, exceeding expectations by $8.2 million.

Adjusted EBITDA: Rose 29.5% year-over-year to $73.3 million, $9.3 million above the high end of guidance.

Adjusted FFO per Diluted Share: Doubled to $0.32, surpassing guidance by $0.09.

Occupancy: Same-property occupancy increased by 550 basis points.

Average Daily Rate (ADR): Increased by 2.8%.

Revenue per Available Room (RevPAR): Grew by 11.8%.

Total Revenue: Increased by 10.1%, while same-property total expenses rose only 5.6%, leading to a 327 basis point expansion in hotel EBITDA margin.

2Strategic Updates and Business Highlights

Strong performance across the portfolio, with 32 properties exceeding revenue forecasts.

Notable recovery in key markets:

Los Angeles: RevPAR increased 44.5%, benefiting from major events like the Super Bowl.

San Francisco: Continued recovery with RevPAR up 14.3%.

Resorts: Strong performance with RevPAR up 7.5%.

Successful rebranding of Mondrian Los Angeles to Valor Los Angeles, leveraging Hilton's distribution network.

Continued focus on operational efficiencies, with total expenses growing slower than revenue.

3Forward Guidance and Outlook

Q2 Expectations: Anticipate RevPAR growth of 3% to 5%, with cautious optimism due to potential geopolitical risks.

Full-Year Guidance: Increased RevPAR and total RevPAR growth outlook by 75 basis points, now expecting RevPAR growth of 2.75% to 4.75%.

Same-Property EBITDA Growth: Forecasted at 5.2% to 8.6%, reflecting a midpoint increase to nearly 7%.

Room Revenue Pace: As of March, room revenue pace is $33.5 million ahead of last year, indicating strong demand trends.

4Bad News, Challenges, or Points of Concern

Geopolitical Risks: Ongoing conflict in the Middle East could impact travel demand and airline operations.

Market Challenges: Washington D.C. and Boston markets remain under pressure, with RevPAR declines of 24.1% and 3%, respectively, due to weak government travel and adverse weather conditions.

Visibility Concerns: Shortened visibility in booking trends and potential economic slowdown could affect future performance.

Expense Growth: While expenses are controlled, rising oil prices could impact travel demand and operational costs.

5Notable Q&A Insights

Impact of Oil Prices: Higher oil prices could affect travel demand, particularly for middle-income travelers, but the company is monitoring the situation closely.

Expense Guidance: Labor costs are expected to grow in the low single digits, with efficiencies being pursued to counterbalance rising costs in other areas like utilities and insurance.

World Cup Outlook: Anticipated positive impact from the World Cup, but caution remains regarding potential disruptions from geopolitical events.

San Francisco Recovery: Strong recovery expected, with RevPAR growth projected between 12% and 15% for the year, driven by a resurgence in business and leisure travel. Overall, Pebblebrook Hotel Trust reported a strong first quarter, exceeding expectations across key metrics, while maintaining a cautious outlook for the remainder of the year due to external risks.